BSE Sensex ends with gain of 24.93 points

Mumbai, May 11: The Sensex today registered a modest gain of 24.93 points on the Bombay Stock Exchange to close at 13,796.16 on encouraging industrial production results.

The Sensex opened slightly weaker at 13,691.86 to reach a high of 13,864.18 and a low of 13,554.34 to finally settle in the green at 13,796.16.

Among the broader markets, the S&P CNX Nifty Index opened stronger at 4,070.20 to reach a high of 4,094.65 and a low of 3,981.15 and settled on positive territory at 4,076.65 from its previous close of 4,066.80, a gain of 9.85 points.

Market analysts pointed out that intense volatility characterised the trading session today. Global markets, election results, inflation and industrial production figures, apart from regular institutional activity, were the key events that made the market oscillate either way.

After opening weaker, the BSE Sensitive Index recovered as some buying resumed at lower levels. It surged to a high of 13,864.18, when inflation and industrial production data were released at noon.

Official data released today showed that India's industrial production rose 12.9 per cent per annum in March 2007, from a year earlier, higher than downwardly revised annual growth of 10.8 per cent in February, due to strong manufacturing output. Analysts had forecast annual industrial output growth of 10.40 per cent.

Meanwhile, inflation has further dipped to 5.66 per cent for the week ended April 28, as compared to 5.77 per cent the previous week due to a marginal decline in food prices.

Experts are of the opinion that Foreign Institutional Investors, (FIIs) who have resumed buying on Indian bourses on day before yesterday, may bode well for the markets, though their inflow was a mere Rs 23.30 crore.

At the premier BSE, FMCG stocks settled down lower. Bank and information technology stocks were in demand and so were a select few from auto, oil and public sector unit (PSU) sectors. Midcap and smallcap stocks lost their way after a firm display, but bounced back well in time to close on a positive note. Mirroring the sharp gains posted by a host of stocks in these segments, the BSE Midcap and Smallcap indices edged up by 0.6 per cent and 0.47 per cent respectively.

Bajaj Auto finished with a strong gain of 4.2 per cent at Rs 2718.60, while Reliance Communications notched up a handsome gain of 2.9 per cent. NTPC moved up by 2.55 per cent.

State Bank of India rallied to Rs 1149.20, netting a smart gain of 2.3 per cent. IT majors Tata Consultancy Services and Infosys Technologies closed stronger by 1.9 per cent and 1.4 per cent respectively.

Cement major ACC was down 4 per cent, Grasim Industries by 2.55 per cent and Gujarat Ambuja Cements has dipped by 1.45 per cent. FMCG majors Hindustan Lever and ITC went down by 2.35 per cent and 0.85 per cent respectively.

Cipla, Hindalco, HDFC, Tata Steel, Reliance Energy and Wipro eased by 1 per cent to 1.5 per cent, while HDFC Bank, Dr Reddy's Laboratories and Bharti Airtel lost 0.6 per cent to 1 per cent.

Satyam Computers, ONGC, Larsen&Toubro, BHEL and Hero Honda also closed in the red, albeit with marginal losses.

The BSE market breadth, which weakened significantly a little past mid afternoon, turned neutral as the session drew to a close.

Out of 2,626 stocks traded on BSE, 1,268 stocks ended with gains.

1,276 stocks posted losses and 82 stocks settled at their previous closing levels.

The muted rise of the Sensex was partly due to weak Asian and European markets. The Nikkei average sank 1.03 per cent today, amid growing concerns about the US economic outlook. The Nikkei closed down 183.24 points at 17,553.72.

The Hang Seng declined 1.34 per cent to 20,468.21 US stocks suffered their steepest fall in two months yesterday, as disappointing retail sales and a widening trade deficit renewed worries about the economic outlook. The Dow Jones Industrial Average lost 147.74 points, or 1.1 per cent, to 13,215.13. Tech laden Nasdaq Composite Index lost 42.60 points, or 1.65 per cent, to 2,533.74.

The Bank of England raised interest rates to a six-year high of 5.5 per cent yesterday amid concerns that diminishing spare capacity in the UK economy and greater pricing power skewed inflation risks to the upside. But the European Central Bank kept its key lending rate unchanged at 3.75 per cent.

Oil prices showed little movement today as lack of fresh news kept the market within a tight range. Light, sweet crude for June delivery fell 6 cents to USD 61.75 a barrel in midmorning Asian electronic trading on the New York Mercantile Exchange.

UNI

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