Mumbai: Equities pared early gains and the SENSEX managed to close the session in positive territory on the Bombay Stock Exchange (BSE) on April 2 in the wake of late selling pressure from domestic financial institutions.

The BSE Benchmark 30-share Index that rose to the intra-day high at 3537.29 at the initial stages, later met with strong resistance and dropped to 3490.87 before ending at 3505.79 as against April 1 close of 3500.18, netting a modest gain of 5.61 points.

The broad-based BSE-100 Index also eased fractionally to close at 1737.13 from previous close of 1737.48.

Losses in key index stocks like HLL, HPCL, Hindalco, ITC, SBI, Telco and Zee Telefilms mitigated the SENSEX rally.

All these stocks witnessed alternate bouts of buying by Foreign Institutional Investors (FIIs).

Initially, FIIs were believed to have made fresh purchases in several Indian stocks, mainly shares of Public Sector Undertakings (PSUs).

However, Indian Mutual Funds, reportedly led by the Unit Trust of India (UTI), availed the opportunity to book profits in prominent counters in a bid to shore up funds to meet redemption pressure.

Citing rising international crude oil prices that have risen to their highest level in six months following fears that tension in the Middle East could disrupt supplies, stock brokers expressed concern over the prevailing state of Indian economy and lack of any measures by the government to support the capital markets.

PTI