Sensex up by 115.19 points; Nifty sets record

By Staff
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Google Oneindia News

Mumbai, May 21: The Sensex today surged by 115.19 points to settle in the green on the Bombay Stock Exchange (BSE) at 14,418.60 in tune with northward-bound global markets and reports indicating that monsoon rains are expected to hit the coastline of Southern Kerala within the next four days.

After opening firmer at 14,362.63, it had reached a high of 14,451.30 and a low of 14,362.63 during intra-day trade.

Meanwhile, the broader Nifty Index created history by soaring over 46.40 points on the National Stock Exchange (NSE) to settle at its all-time high of 4,260.90 from previous close of 4,214.50 points.

Though it had opened with a marginal gain at 4,217.65, it reached a high of 4,269.35 and a low of 4,217.55 during intra-day trade.

''The markets were strong throughout the day's trading session, as buying momentum refused to die-down for index pivotals. Shares from oil&gas, metal and fast moving consumer goods (FMCG) were in high demand, on renewed buying.

However, selling was seen in IT and auto stocks,'' traders revealed.

The market breadth, which indicates the overall health of the market, looked strong as small-cap and mid-cap stocks also participated in the rally. Though the breadth was positive in the late afternon session, it was weaker compared with the morning session when there were 4 gainers for every loser. The advance to decline ratio was pegged at 1.12 by the closing bell. On BSE 1,380 shares advanced as compared to 1,225 that declined, while 81 remained unchanged, market analysts observed adding that the total turnover on BSE amounted to Rs 5,559 crore, boosted by a series of block deals.

Firm global markets helped local bourses. All the Asian indices, except KLSE Composite of Malaysia was trading lower.

Hang Seng rose 0.11 per cent and Nikkei 225 index gained 0.90 per cent. European markets were trading mixed.

Meanwhile, in a major development, the Indian government last week tightened overseas borrowing rules. The move will make it harder for less creditworthy and smaller local companies to raise funds. This measure is aimed at curbing soaring capital flows and calm the hot real-estate sector, experts explained.

REL surged 8.53 per cent to Rs 554.90 on huge volumes of 1.42 crore shares. It was the top traded counter on BSE, with turnover of Rs 736.27 crore. Adlabs Films scrip was up 6.94 per cent to Rs 562. It was the second top traded stock on BSE with a turnover of Rs 296.50 crore.

Index heavyweight Reliance Industries (RIL) advanced by 4.45 per cent to Rs 1,775 on 9.86 lakh shares. It struck an all time high of Rs 1780, on market rumours that it is likely to come out with rights issue.

Public sector unit (PSU) oil exploration major ONGC advanced 2.44 per cent to Rs 931.50 after Brent crude oil rose 28 cents to USD 69.70 a barrel today, while US benchmark crude gained 20 cents to USD 65.14, boosted by concerns over supplies from major exporters Iran and Nigeria.

HDFC Bank was up 2.61 per cent to Rs 1100, ITC was up 2.25 per cent to Rs 170.75 and Maruti Udyog rose 1.91 per cent to Rs 823.10.

Tata Steel jumped 5.50 per cent to Rs 623.55 on renewed buying following strong Q4 results announced late last week.

Ranbaxy Laboratories was up 0.44 per cent to Rs 398.50 Tata Motors slumped 2.63 per cent to Rs 723.20 as selling continued after its Q4 March this year OPM shrank to 11.69 per cent from 12.9 per cent in Q4 March last year.

Information technology (IT) pivotals attracted fresh selling as rising Rupee, hardening interest rates and costly inputs are taking a toll on the profit margin of Indian exporters. It has gained more than 8 per cent against the US dollar this year to be Asia's best-performing currency.

TCS was down by 1.34 per cent to Rs 1235, Satyam Computers 1.93 per cent to Rs 446.50, Wipro 1.63 per cent to Rs 535.10, and Infosys Technologies by 1.11 per cent to Rs 1960.

Bajaj Auto slipped by 1.91 per cent to Rs 2243.10, as its demerger scheme triggered a flurry of rating downgrades by brokerage houses. Disappointment about the post-demerger structure and a lack of clarity about future business plans have been cited as the main reasons for the downgrades, analysts said.

Drug maker Dr Reddy's Laboratories slipped 1.24 per cent to Rs 657.50, despite posting strong March 2007 quarterly net profit on sales of generics.

China's stocks held steady today helping Asian markets react calmly to China's surprise move to widen the yuan's trading band and raise interest rates, while the yen slid to a record-low against the euro.

Wall Street was boosted last week by fresh takeover activity and after a gauge of consumer sentiment rose more than expected in May this year, reassuring investors about the strength of the US economy. Dow Jones Industrial Average gained 79.81 points, or 0.59 per cent, to a record closing high of 13,556.53. The Nasdaq Composite Index gained 19.07 points, or 0.75 per cent, to 2,558.45.


UNI

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