Key indices recover, Sensex ends 702.94 up

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{image-sensex, big_02072008.jpg www.oneindia.com}Mumbai, Jul 2: Snapping the previous negative rally, the key indices of the stock market on Wednesday, July 2, bounced back with strong gains in the last hour of the session, led by the realty stocks.

The Bombay Stock Exchange Sensex sharply surged by 702.94 points or 5.42 per cent to close at 13664.62 on short covering and fresh buying at lower levels in the market. It had hit a intra-day high at 13712.31, and gained 750.63 points in the late trade. However, Sensex started the session marginally low at 12948.05 from its previous close of 12961.68. Meanwhile, the broad-based Nifty index of National Stock Exchange climbed 196.60 to close at 4093.35 following the smart rally.

Market on July 2, cheered despite enough positive cues in the global market due to heavy buyings at lower levels in many stocks especially in realty and banking stocks which were crushed badly during last few sessions, SBI Mutual Fund Chief Investment Officer Sanjay Sinha said.

The bigger concern in the market, as of now, is contraction of risk appetite globally, he said adding, ''Market is grappling a lot of uncertainty like crude oil and commodity prices ruling high.'' Supporting a similar view, Birla Sun Life's Chief Investment Officer Vikram Kotak said, ''Apart from higher volume of buyings by the domestic and institutional investors it was also observed that net selling by the foreign institutional investors (FIIs) has came down comfortably, also helped the positive rally today.'' Market breadth was positive today. Mid-cap index on BSE gained 3.30 per cent to close at 5311.30 and Small-cap index ended at 6506.80. All the sectoral indices, except FMCG, recovered from their previous lows and closed in a comfortable positive zone.

Realty index was up 12.22 per cent, followed by Bankex up 6.02 per cent, Metal index up by 5.96 per cent, Capital Goods up by 5.89 per cent, IT and Power indices up by about 5.75 per cent led the rally. However, FMCG closed in the red and was 1.10 per cent down.

Realty stocks surged in late trade on bargain hunting at lower levels. DLF rose 15.08 per cent to Rs 423.95 after the company said its board would meet on July 10 to consider a proposal for the buyback of equity shares of the company.

Unitech surged by 7.21 per cent to Rs 171.10 and Indiabulls Real Estate gained 14.27 per cent to Rs 286.20.

Bharat Heavy Electricals gained 5.24 per cent to Rs 1426.25, Larsen&Toubro was up 7.33 per cent to Rs 2297.15, Suzlon Energy up 1.76 per cent to Rs 199.45, and Praj Industries rose by 13.75 per cent to Rs 170.

Banking stocks rebounded after the recent steep fall. HDFC Bank was up 5.66 per cent to Rs 1020.55, State Bank of India climbed 5.33 per cent to Rs 1079.25 and ICICI Bank surged 5.68 per cent to Rs 623.

However, FMCG index was the lone loser from sectoral indices on BSE. ITC declined 2.1 per cent to Rs 179.60 and United Spirits fell 3.49 per cent to Rs 1153.30.

Reliance Industries (RIL) rose 4.84 per cent to Rs 2143.10, Reliance Infrastructure surged 12.6 per cent to Rs 790.50, HDFC was up 11.10 per cent to Rs 2039.20, Satyam Computer Services rose 7.13 per cent to Rs 463.30, Jaiprakash Associates was up 7.03 per cent to Rs 144.70, Mahindra&Mahindra up 6.57 per cent to Rs 469, and Infosys up 6.45 per cent to Rs 1820.60, were the other major gainers of th

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