Dramatic recovery lifts Sensex by 64 pts to 10,573

Mumbai, Mar 9: Nose diving by 132 points during the morning trading following severe pressure due to the foreign fund outflow, the 20-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) made a dramatic recovery, adding 64 points, to close at 10,573 from its last close of 10,508.

The Foreign Insitutional Investors (FIIs) selling another Rs 2,708 crore of equity in the Future&Options (F&O) markets yesterday, had its effect on the stock market this morning before they recovered in the evening hours.

The global markets had a mixed day where the Japanese index gained 2.62 per cent or 409 points at 16,036, while the New York Stock Exchange and Dow Jones closed in the green with marginal gains.

The net selling by the FIIs in Nifty Futures yesterday was Rs 2,100 crore out of the total of Rs 2,708 crore selling in F&O.

However, in the cash markets, the FIIs were net buyers by 222.50 crores on Tuesday.

The Sensex dipped by 132 points this morning to 10,376 compared to the last close of 10,508 after opening 25 points up at 10,533.

The intra-day fall was 216 points, same as yesterday's loss on Sensex as market fell from an intra-day high of 10,593 to 10,376, but the investors today saw an opportunity to buy corrected scrips as markets dipped.

Cement and banking stocks were the big gainers to bounce back.

Gujarat Ambuja Cements gained 6.29 per cent at Rs 98.05; ACC gained 4.97 per cent at Rs 749.40; Grasim Industries 4.25 per cent at Rs1,885.95.

Among the banking scrips, SBI gained 1.99 per cent at Rs 905.90 and ICICI bank 1.90 per cent at Rs 601.75. Other Sensex gainers were Tata Steel, Dr Reddy's Lab, Infosys, NTPC and Satyam Computers.

The 50-share National Stock Exchange(NSE) S&P CNX Nifty index also closed with a gain of 12.40 points at 3,129.10 as compared dto last close of 3,116.70.

There were only three sector on the BSE index that ended in the red today: automobile, consumer durables and health care; all other sectoral indices, led by IT and bank, ended in green.

The top Sensex losers were Ranbaxy,Hero Honda, Bharti Tele, Maruti, Cipla, HDFC, Hindalco, Tata Motors, HDFC Bank, Bajaj Auto.

Among the non-Sensex stocks that defied the bearish mood in the market were MTNL, Jagran Prakasan, Reliance Natural Resources.

The globalcrude oil prices dropped to USD 60 per barrel at the New York Mercantile Exchange(NYMEX) which was a good news for investors fighting bearish market sentiments.
The other blue chips lifting the key index up were Dr Reddy's Lab, gaining 2.17 per cent at Rs 1,332; Tata Steel gained 1.83 per cent at Rs 451.90; Infosys Technologies by 1.61 per cent at Rs 2,842.50; NTPC by 1.15 per cent at Rs 135.75; and Satyam Computers by 1.13 per cent to Rs 785.85. The blue chips that lost today were led by Ranbaxy Lab at Rs 420.25, losing 2.62 per cent; Hero Honda and Bharti Tele closed lower by 2.35 each at Rs 880.05 and Rs 382.65 respectively.

Maruti and Tata Motors also lost after recent gains. Maruti closed at Rs 866.55, down by 1.85 per cent, and Tata Motors closed at Rs 874.45 down by 0.59 per cent.

Cipla, another drug major, lost by 1.79 per cent to Rs 574.85; HDFC closed lower by 1.02 per cent at Rs 1,279.85; Hindalco ended lower by 0.85 per cent at Rs 157.85; HDFC Bank closed 0.51 per cent lower at Rs 750.15 and Bajaj Auto closed 0.47 per cent lower at Rs 2,667.45.

The market breadth was turned positive in the narrow market of Sensex 30 scrips with 18 advances against 12 declines. However, in the broader market 1,418 scrips declined against 1,080 gaining.

The other blue chips lifting the key index up were Dr Reddy's Lab, gaining 2.17 per cent at Rs 1,332; Tata Steel gained 1.83 per cent at Rs 451.90; Infosys Technologies by 1.61 per cent at Rs 2,842.50; NTPC by 1.15 per cent at Rs 135.75; and Satyam Computers by 1.13 per cent to Rs 785.85. The blue chips that lost today were led by Ranbaxy Lab at Rs 420.25, losing 2.62 per cent; Hero Honda and Bharti Tele closed lower by 2.35 each at Rs 880.05 and Rs 382.65 respectively.

Maruti and Tata Motors also lost after recent gains. Maruti closed at Rs 866.55, down by 1.85 per cent, and Tata Motors closed at Rs 874.45 down by 0.59 per cent.

Cipla, another drug major, lost by 1.79 per cent to Rs 574.85; HDFC closed lower by 1.02 per cent at Rs 1,279.85; Hindalco ended lower by 0.85 per cent at Rs 157.85; HDFC Bank closed 0.51 per cent lower at Rs 750.15 and Bajaj Auto closed 0.47 per cent lower at Rs 2,667.45.

The market breadth was turned positive in the narrow market of Sensex 30 scrips with 18 advances against 12 declines. However, in the broader market 1,418 scrips declined against 1,080 gaining.

UNI