Sensex drops around 70 points in late morning deals

Mumbai: The benchmark BSE Sensex pared its early gains to trade down by around 70 points in late morning session due to losses in FMCG, oil and gas, telecom and IT stocks.

The 30-share index was trading lower by 68.30 points or 0.21 per cent at 33,081.05 at 1130hrs. The broader Nifty was down 14.80 points or 0.14 per cent at 10,211.75 with 28 of its constituents trading in the negative. The BSE Sensex recovered over 140.49 points, or 0.42 per cent, at 33,289.84.140 points in early session on Friday after fresh buying in bluechips triggered by positive GDP numbers for the September quarter amid mixed Asian cues.

GDP rose 6.3 per cent in the quarter ended September, higher than the 5.7 per cent in previous 5.7 per cent in April-June on improved investment and steady demand, the Central Statistics stated on Thursday.

The indices however slipped into negative territory with a decline in Reliance Industries, Bharti Airtel, HDFC and Infosys. Bharti Airtel dropped the most 1.43 per cent among Sensex scrips after reports that UIDAI has ordered a probe against the company.

The telecom company said it has received notice from UIDAI and in the process of providing a reply to that. Tata Steel fell by 1.37 per cent, Coal India by 1.10 per cent and Dr Reddy by 1 per cent. Foreign portfolio investors (FPIs) sold shares worth a net Rs 1,500.76 crore on Thursday, as per provisional data.

Domestic institutional investors (DIIs) bought equities worth a net Rs 1,202.57 crore. Asian markets were trading with small gains buoyed by record highs in US equities.

US stocks rallied on Thursday with the Dow finishing above 24,000 for the first time in history, as investors grew more optimistic about the prospects for a tax overhaul out of Washington.