Sensex gains by 176.26 pts, closes at 14.267 mark

Mumbai, Feb 1: The Sensex today recovered smartly by 176.26 points to close firm at 14,267.18 on the Bombay Stock Exchange on fresh speculative demand from Foreign Institutional Investors (FII's) and mutual funds.

The market staged a solid rebound after Wednesday's 121-point fall, tracking firm global markets, boosted by the US Federal Reserve's decision to keep interest rates steady. The Fed also abstained from voicing new concerns about inflation, signalling that a rate hike this year was less likely.

Back home, the market sentiment was also firm after the Reserve Bank of India on Wednesday upgraded its 2006/07 GDP growth forecast to 8.5 - 9.0 per cent from 8 per cent, along with raising the key short-term lending rate by 25 basis points. The Sensex had declined 121 points following the announcement on Wednesday.

Banking, telecom shares and cement pivotals led today's surge.

The market-breadth on BSE was a bit positive. For 1,333 shares rising on BSE, 1,319 declined. Just 41 shares were unchanged.

The BSE clocked a turnover of Rs 395 crore.

The Sensex opened higher at 14,124.36 points. Later, it recorded a high at 14,278.08 points and a low at 14,109.91 points.

The BSE BANKEX and METAL indices also jumped up sharply by 153.06 and 152.79 points respectively. They closed high at 7413.15 points for BANKEX index and for METAL index at 9435.96 points, followed by CG index by 102.31 and quoted at 9588.10 points, PSU index by 99.77 touching 6400.12 points, CD index by 94.07 closing at 3895 points, TECK index by 61.31 touching 3809.77 points, AUTO index by 54.64 and quoted at 5570 and OIL&GAS index by 37.09 and closed at 6668.11 points.

Meanwhile, the S&P CNX Nifty index of NSE closed firm at 4137.20 points with a major gain around 55 points from its last close of 4082.70 points before it resumed flat at 4083.40 points. Later it registered the day's high at 4141.60 points and a low at 4081.10 points.

Global rating agency Standard&Poors (S&P) raised India's sovereign local currency credit ratings to investment grade BBB-/A-3, with a stable outlook, citing strong economic prospects and an improving fiscal situation.

Global markets were firm on Thursday. In Europe, key benchmark indices in London, Germany and France were up between 0.8 - 1 per cent. Asian markets held firm after the US Federal Reserve kept interest rates steady at 5.25 per cent.

Key benchmark indices in Hong Kong, Japan, South Korea, and Singapore were up between 0.7 - 1.7 per cent. Nymex crude was down 38 cents, at USD 57.76 a barrel, brokers said.

State Bank of India (SBI) jumped in mid-afternoon trade soon after a report filtered in that the Union Cabinet had approved the transfer of RBI's stake in SBI to the Government by June 2007 at a valuation based on market prices. The stock was up nearly 6 per cent to Rs 1204. As many as 12.1 lakh shares changed hands in the counter on BSE.

Among private sector banks, HDFC Bank gained 2.9 per cent to Rs 1109, and ICICI Bank was up by 1.2 per cent to Rs 952.

Hindalco surged nearly 4 per cent to Rs 183, tracking recovery in global commodity prices.

Tata Motors increased 3.6 per cent to Rs 909.45, ahead of unveiling sales numbers for January 2007.

Cellular services major Bharti Airtel gained 3.6 per cent to Rs 732.95. In January 2007, the company reported a robust Q3 Dec-2006 results.

Reliance Communications rose by 2.7 per cent to Rs 473.50. During trading hours on Wednesday, RCL reported a net profit of Rs 924 crore in the Dec-2006 quarter. Its board also approved a foreign listing of its unit, Flag Telecom.

Reliance Energy advanced by 2.3 per cent to Rs 525.50, after the company said on Wednesday it had bagged two contracts worth Rs 4157 crore.

Index heavyweight Reliance Industries gained nearly 1 per cent to Rs 1377.55.

ACC was up 1.4 per cent to Rs 1035, but the stock came off the higher level after surging as much as 3.2 per cent to Rs 1053 soon after the Dec-06 quarter results were released this afternoon. ACC's net profit surged to Rs 358.46 crore in the Dec-2006 quarter from Rs 173.45 crore in the Dec-2005 quarter.

Gujarat Ambuja Cements rose by nearly 2 per cent to Rs 139.70, after reporting 6.4 per cent growth in shipments in the Jan-07 to 1.49 million tonnes.

Tata Steel shed 0.9 per cent to Rs 459.50, but came off the session's low of Rs 451.10 on short-covering. It had plunged by 10.6 per cent to Rs 463.95 on Wednesday after winning Anglo-Dutch steel maker Corus Group in an auction held in London. Tatas will pay USD 12.1 billion for Europe's leading steel producer.

UNI