The Hindu : Front Page : Sensex at five-month high

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Tuesday, Apr 07, 2009
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Sensex at five-month high

G-20 countries’ steps to tackle recession bolstered sentiment

MUMBAI: Although profit booking at higher levels pared early sharp gains, the Bombay Stock Exchange benchmark index, Sensex, continued its upward journey for the fourth straight session, gaining by another 186.04 points to close at nearly a five-month high of 10534.87.

The BSE 30-share barometer moved between 10654.89 and 10410.44 before settling at 10534.87, the level not seen since November 10, 2008, when it closed at 10536.16, a smart rise of 1.80 per cent over its previous close. It has gained nearly 967 points or 10.10 per cent in the four-session rally.

The broad-based 50-share Nifty of the National Stock Exchange improved by 45.55 points or 1.42 per cent to 3256.60.

Asian indices closed strong with a gain between 0.48 per cent and 3.11 per cent.

Heavy buying by foreign institutional investors (FIIs) and also domestic funds also boosted market sentiment. FIIs pumped in Rs. 691.56 crore on April 2 while domestic funds also picked up shares worth Rs. 254.71 crore on the same day, as per provisional data.

The strategies by G-20 countries to tackle recession and revive the global economy, coupled with optimism about fresh monetary measures by the Reserve Bank of India to support growth, bolstered market sentiment. Brokers said bulls were buying blue chip stocks.

Consumer durables, capital goods, metals, auto and realty counters led the rally while FMCG shares suffered a sharp setback on selling.

Among top Sensex-based gainers, M&M rose by 14.26 per cent, Reliance Communication by 11.19 per cent, L&T by 7.40 per cent, HDFC by 7.37 per cent, Reliance Infra by 6.47 per cent, Hindalco by 6.39 per cent, Tata Steel by 4.89 per cent, ICICI Bank by 4 per cent and Sterlite Industries by 3.64 per cent.

However, ACC declined by 3.14 per cent, ITC by 2.49 per cent, Ranbaxy by 2.30 per cent, Grasim by 2.13 per cent, HUL by 1.67 per cent and SBI by 1.43 per cent.

The total market depth remained strong as 1,859 counters ended with gains against 633 with losses on the BSE.

The trading volume was relatively low at Rs. 4,690.16 crore against Rs. 4,926.47 crore on Friday last.

Reliance Infra was the most active share with the highest turnover of Rs. 281.13 crore followed by RIL (Rs. 242.26 crore), Reliance Capital (Rs. 163.74 crore), ICICI Bank (Rs. 158.43 crore) and Essar Oil (Rs. 144.26 crore).

Rupee rallies further

Continuing its rally for the third day in succession, the rupee on Monday improved by another 30 paise to close at 50.04/05 against the dollar on demand from oil refiners and short coverings by exporters pared early smart gains.

In active trading at the inter-bank foreign exchange market, the domestic unit resumed higher at 49.95/97 against last Thursday’s close of 50.34/35 and later hit a high of 49.88 on firm equity markets.

But it fell to a low of 50.15 before concluding at 50.04/05, still higher than the last close. In the straight three-session rally, the rupee has spurted by 114 paise or 2.23 per cent.

The foreign exchange and money markets will remain closed on April 7 on account of Mahavir Jayanti. — PTI

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