Sensex edges up by 8 points after slipping into red

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Volatility was witnessed in early trade on the domestic bourses today, with the BSE benchmark Sensex regaining positive terrain after slipping into the red for a brief period following a firm start.

The BSE benchmark Sensex resumed higher at 18,571.15 and hovered in a range between 18,578.55 and 18,463.34 before quoting at 18,527.17 at 1015 hours, showing a marginal gain of 8.95 points, or 0.05 per cent, from its last close.

However, the NSE’s 50-share Nifty was down by 4.40 points, or 0.08 per cent, to 5,570.45 at 1015 hours.

Shares of the consumer durable, tech, healthcare, IT and FMCG sectors moved up moderately, while shares of realty, auto, banking, power and capital goods firms declined further on selling pressure.

Realty and banking stocks extended yesterday's losses on continued worries that higher interest rates could dent demand for residential and commercial properties.

The market may remain volatile in the near term as traders roll over positions in the derivatives segment from the near-month July, 2011, series to August, 2011, series ahead of the expiry of July, 2011, derivatives contracts on Thursday.

Meanwhile, Asian shares retreated in early trade as the US remained without a deal to prevent default before an August 2 deadline and amid some unexpected economic data from the region. The key benchmark indices in Hong Kong, Japan and Singapore fell by between 0.02 per cent and 0.45 per cent, while the indices in China and Taiwan rose between 0.06 per cent and 0.15 per cent.