Sensex climbs up 341 pts at 10,822; investors back

Mumbai, May 23: Volatile trading persisted today on the BSE Sensex as markets swung by 673.72 points, touching an intra-day peak of 10,859.20 before closing at 10,822.78, an increase of 341 points over the previous close.

Earlier, the Bombay Stock Exchange (BSE) Sensitive Index (Sensex) had dipped 400 points in the morning session, after opening 108 points up at 10,590, from the previous close of 10,481.77.

The National Stock Exchange (NSE) S&P CNX Nifty index has also risen by 3.83 points to 3,199.35, as compared to the last close of 3,081.35 points.

The sectoral indices showing maximum gains were BSE metal index, up by 7.35 per cent; BSE capital goods was up by 4.11 per cent; consumer durables was up by 4.95 per cent, whereas oil and gas indices gained 3.93 per cent and PSU and bankex were up by 4.13 and 2.38 per cent, respectively.

The big gainers on the Sensex today were - Grasim Industries, Tata Power, Tata steel, Wipro, BHEL, Reliance Energy, Hindalco, Maruti, Gyjarat Ambuja and NTPC, up by 4 to 9 percentage points.

However, the major losers were Hero Honda Motors, Dr Reddy's Lab and HDFC Bank.

During the day, Finance Minister P Chidambaram allayed fears of the FIIs and other small time investors, by stating that fundamentals of the Indian economy are strong and there is nothing to panick, which helped the markets to recover by more than three per cent on both Sensex and Nifty indices.

In an interview to a television channel Mr Chidambaram said, ''Most of the mutual funds see a huge buying opportunity in the market, hence, it is ironical why the retail investors are not willing to remain invested.'' On the current situation in the Indian market, Morgan Stanley, Chief Asian Strategist Adrian Mowat said, ''Further corrections in the stock market will provide buying opportunities and the fair value for the Sensex would be fixed at 11,000 points.''

The top gainers on the Sensex were - Grasim Industries, up by 9.09 per cent at Rs 1,916.70; Tata Power was up by 7.93 per cent at Rs 550.40; Tata Steel by 7.83 per cent at Rs 510.00; Wipro by 7.55 per cent at Rs 473.15; BHEL by 6.32 per cent at Rs 2,013.25 per cent; Reliance Energy by 6.30 per cent at Rs 549.25; Hindalco by 6.29 per cent to Rs 191; Maruti Udyog by 5.92 per cent to Rs 802.60; Gujarat Ambuja by 5.09 per cent to Rs 95.95 and NTPC was up by 4.83 per cent to Rs 117.10.

The major losers were - Hero Honda Motors, down by 2.68 to Rs 792.65, Dr Reddy's Lab was down by 1.41 to Rs 1,420.85 and HDFC bank by 0.06 per cent to Rs 786.20.

The breadth was positive in the broader market after three days of consecutive selling, with 1,424 scrips advancing versus 985 declines, out of total 2,460 scrips traded.

Discarding any liquidity problems, the National Stock Exchange stated that ''the pay in and pay out in respect of securities and funds in respect of both cash and derivatives markets have been successfully completed.'' Markets are expected to rise further as experts believe it is too late to be selling and it was time to buy.

The top gainers on the Sensex were - Grasim Industries, up by 9.09 per cent at Rs 1,916.70; Tata Power was up by 7.93 per cent at Rs 550.40; Tata Steel by 7.83 per cent at Rs 510.00; Wipro by 7.55 per cent at Rs 473.15; BHEL by 6.32 per cent at Rs 2,013.25 per cent; Reliance Energy by 6.30 per cent at Rs 549.25; Hindalco by 6.29 per cent to Rs 191; Maruti Udyog by 5.92 per cent to Rs 802.60; Gujarat Ambuja by 5.09 per cent to Rs 95.95 and NTPC was up by 4.83 per cent to Rs 117.10.

The major losers were - Hero Honda Motors, down by 2.68 to Rs 792.65, Dr Reddy's Lab was down by 1.41 to Rs 1,420.85 and HDFC bank by 0.06 per cent to Rs 786.20.

The breadth was positive in the broader market after three days of consecutive selling, with 1,424 scrips advancing versus 985 declines, out of total 2,460 scrips traded.

Discarding any liquidity problems, the National Stock Exchange stated that ''the pay in and pay out in respect of securities and funds in respect of both cash and derivatives markets have been successfully completed.'' Markets are expected to rise further as experts believe it is too late to be selling and it was time to buy.

UNI

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