Sensex recovers, closes 113.49 pts up

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{image-sensex, big_25062008.jpg www.oneindia.com}Mumbai, June 25: Recovering after five days of downfall, the benchmark index today shot up by 113.49 points to close at 14220.07 on fresh buying in select blue chip stocks.

Amid worries over negative impact on growth due to high inflation and rate hike by the Reserve Bank, Sensex opened 333.27 points lower at 13776.21 and slipped further to touch a low of 13736.01, and lost 370.57 points in the early trade. However, it rebounded to touch an intraday high of 14248.65, and gained 142.07 in late trade, after the Finance Minister assured that monetary measures taken by the RBI were to keep comfortable growth pace.

The broad-based S &P CNX Nifty index of National Stock Exchange surged 61.55 points or 1.47 per cent at 4252.65.

According to marketmen, the initial jolt was caused by the RBI's move late last evening to hike the key lending rate in an aggressive attempt to combat spiralling inflation. Positive European and Asian markets cues also helped the battered Indian bourses in recovering from their lower ends.

Heavyweights Reliance Industries and Bharti Airtel, helped the market halt its five-day declining trend. The market breadth turned positive later in the day in contrast to a weak breadth earlier in the day, brokers said.

Marketmen maintained that further volatility is likely to remain high in the market in the future session as derivatives contracts for June 2008 series. The Sensex had shed 1590.32 points or 10.13 per cent in five trading sessions to 14106.58 till June 24 from a recent high of 15696.90 on June 17.

It is down 6,066.92 points or 29.90 per cent in the calendar year 2008 so far from its close of 20286.99 on December 31, 2007 and is 6986.70 points or 32.94 per cent below its all-time high of 21206.77, hit on January 10, 2008.

The BSE Mid-Cap index today rose 0.59 per cent to 5747.60 and the Small-Cap index rose 0.74 per cent to 7058.02, underperformed the Sensex. The total turnover on BSE was quoted at Rs 5240 crore against Rs 5413.87 crore a day before. Turnover in NSE's futures &options segment amounted to Rs 81001.29 crore as compared to Rs 70250.13 crore in the previous session.

Reliance Communications (RCom) galloped 6.85 per cent to Rs 507.40 on 31.95 lakh shares and was the top gainer from the Sensex pack. RCom's proposed merger deal with South Africa based global operator MTN is expected to close by first week of July.

Sectoral indices on BSE displayed a mixed trend. Metal index closed higher by 2.96 per cent at 13765.14), Realty index rose 2.15 per cent to 5207.85, Power was up 1.93 per cent at 2444.42, Consumer Durables index rose 1.71 per cent to 3782.86 and Capital Goods index gained 1.53 per cent at 10802.18.

However, Oil&Gas index declined 2.90 per cent to 9411.56, IT index was down 1.12 per cent to 4094.95, while FMCG, Auto and Bankex declined marginally.

Reliance Industries (RIL) gained 4.05 per cent to Rs 2149.95 on 13.16 lakh shares. RIL has reportedly signed a cooperation agreement with UAE-based Crescent Petroleum to jointly undertake projects of mutual interest in the region's energy sector.

Bharat Heavy Electricals (Bhel) surged 3.88 per cent to Rs 1445.

Bharti Airtel was up 4.58 per cent to Rs 785 and Reliance Infrastructure ended up 3.55 per cent to Rs 943.30.

Oil&Natural Gas Corporation (ONGC) rose 1.73 per cent to Rs 870.10. The company posted 6.77 per cent rise in net profit to Rs 16701.65 crore for the year ended March 2008 over the previous fiscal.

However, Housing Development Finance Corporation slumped 4.47 per cent to Rs 2165 on concerns that higher interest rates will slow down demand for housing loans. A total of 1.83 lakh shares were traded on the counter. It was the top loser from the Sensex pack.

Software pivotals were subdued after Indian rupee firmed against the dollar. Satyam Computer Services declined 1.12 per cent to Rs 449, Wipro was down 2.59 per cent to Rs 458 and Infosys closed 2.15 per cent down to Rs 1754.50. However, TCS climbed 4.72 per cent to Rs 883.80.

UNI

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