Sensex closes at 1-month high despite rising inflation

Mumbai: The BSE Sensex on Thursday advanced by 55 points as gains in pharma, banking and IT stocks helped the barometer extend its winning streak for a sixth session even as investors turned cautious due to a spike in inflation and losses in global markets after weak Chinese economic data.

The 30-share barometer closed at 32,241.93, showing net gains of 55.52 points or 0.17 per cent -- a closing level not seen since August 7 when it ended at 32,273.67.

It moved erratically between 32,328.61 and 32,186.84 in day trade.

The broader Nifty closed higher by 7.30 points or 0.07 per cent at 10,086.60 in a volatile trade. It shuttled between 10,126.50 and 10,070.35 during the day.

Persistent buying by domestic institutional investors and retail investors kept the momentum for indices, brokers said.

Investors turned cautious after wholesale inflation rose to a four-month high of 3.24 per cent in August as prices of food articles, led by onions and vegetables soared, dashing hopes of rate cut by the RBI.

The Sensex had gained 524.44 points in the previous five days on firm global cues on receding concerns about North Korea and sustained buying by domestic investors.

Among pharma stocks, Sun Pharma, Cipla and Lupin rose up to 4.24 per cent. Axis Bank and ICICI Bank rose up to 4 per cent helping the Sensex to settle at over one month high level.