Sensex fails to maintain initial gains

Mumbai: The BSE benchmark Sensex failed to maintain initial gains and was down by nearly 14 points at 1015 hours on Thursday due to mild selling pressure at select counters on inflation worries amid weak global cues.

Expectations of a rise in interest rates also affected the market sentiment in early trade today.

Reliance Communication, Tata Motors, State Bank Of India, Maurti Suzuki, Reliance Infra, ONGC, Hero Honda were the major losers in the morning session.

However, NTPC, TCS, Reliance Industries, BHEL and Tata Steel firmed up on good buying enquiries.

The 30-share Sensex resumed slightly higher at 18,394.57 and hovered in a range between 18,449.64 and 18,379.45 before quoting at 18,380.38 at 1015 hours, showing a net loss of 13.91 points, or 0.08 per cent, from its last close.

The 50-share Nifty index on NSE also moved down by 16.65 points, or 0.30 per cent, to 5,510.20 at 1015 hours.

The government will today unveil data on some wholesale price indices — viz the food price index, the primary articles index and the fuel price index — for the week ended May 28, 2011.

Most Asian stocks fell in early trade on worries about US economic growth. The key benchmark indices in Japan, Hong Kong, Indonesia, South Korea and China fell by between 0.08 per cent and 0.66 per cent.

However, the key benchmark indices in Singapore and Taiwan were up between 0.05 per cent and 0.13 per cent.