Sensex climbs over 100 pts, pares gains; Nifty50 above 9,600

NEW DELHI: Benchmark indices the BSE Sensex and the NSE Nifty50 took a breather on Tuesday, after rallying about 1 per cent each in the previous trading session, tracking weak PMI readings and negative start to Asian markets.

At 9.25 am, the BSE Sensex was trading 82 points, or 0.29 per cent, higher at 31,302. The Nifty 50 was trading 18 points, or 0.18 per cent, lower at 9,632. Midcap and smallcap indices fell up to 0.15 per cent.

"The benchmark index has reached near the resistance zone of 9,610-9,650. Hence the index looks ripe for next leg down. The short term outlook remains bearish unless 9,700 is taken off. On the way down, the swing low of 9,448 will be the key level to watch out for with overall short-term target at 9,200.,” said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.

Data released on Monday showed weak client demand at companies and concerns related to goods and services tax slowed India's manufacturing activity to a four-month low in June, even as export orders moved at the quickest pace in three quarters, a private survey showed.

The Nikkei India Manufacturing Purchasing Manager's Index (PMI) dropped to 50.9 in June from 51.6 the previous month, as a softer rise in new orders resulted in weaker growth in production, thw ET reported.

Among Sensex stocks; Adani Ports, Tata Motors Reliance Industries and NTPC advanced 1.17 per cent, 1.08 per cent, 1.08 per cent and 0.99 per cent, respectively.

ONGC added 0.88 per cent to Rs 160.60. ONGC Videsh , the overseas arm of the state-owned firm has acquired 30 per cent interest in an oil block, off Namibia, from UK's Tullow Oil. OVL did not disclose the deal value.

Losers included Hero MotoCorp, Wipro, Dr Reddy’s Labs and ITC, which declined 1.19 per cent, 0.71 per cent, 0.62 per cent and 0.56 per cent, respectively.