Sensex ends with modest gains

Mumbai, Aug 28: The Bombay Stock Exchange (BSE) Sensex today settled higher with a modest gain of 76.81 points at 14919.19, fuelled by strong buying momentum in information technology (IT) pivotals and index heavyweight Reliance Industries (RIL).

''The gains have been modest because bearish global markets played spoil-sport. Asian markets were trading mixed today, while all European markets were trading lower. Besides, US markets closed in the red in it's last session,'' market men rued.

''This is the third straight session of rally for the barometer index. IT pivotals made a comeback today, as the Rupee weakened against the Greenback. It was hovering at 41.15 as against yesterday's close of 41.01/41.02. Interestingly, local mutual funds are providing support at lower levels. They have pumped in Rs 2,524.30 crore in the Indian equity market this month, that is till August 24. On the other hand, foreign institutional investors (FIIs) and domestic institutional investors (DIIs) have also been buying shares since the past few sessions, after domestic political turmoil subsided,'' market analysts observed.

The broader National Stock Exchange (NSE) S&P CNX Nifty also advanced by 18.10 points to close on positive territory at 4329.15.

India's largest private sector entity in terms of market capitalisation and oil refiner Reliance Industries (RIL) soared to Rs 1884.25 on 8.15 lakh shares. Energy experts say RIL is entering into an alliance with Container Corporation of India (Concor), the country's largest container train operator. Under the partnership, RIL will have access to several infrastructural facilities of Concor, including almost 60 terminals across the country. RIL intends to utilise these facilities as key warehousing points for Reliance Retail.

BSE data shows that the total turnover here amounted to Rs 4,096 crore. The market breadth was strong since 1,593 shares advanced as compared to 1,061 that declined, while 75 remained unchanged. Among the 30-scrip Sensex pack, 19 rose while the rest declined.

Besides RIL, the other leaders included Hindalco, Tata Steel, Hindustan Zinc, SAIL, Satyam Computers, Infosys, TCS, Wipro and Cipla, while the prominent laggards were ICICI Bank, SBI, Bharti Airtel, Ranbaxy laboratories, ACC and ONGC.

All European markets were trading weak today. Key benchmark indices in France Germany and United Kingdom declined.

Asian markets settled on a mixed note today. While Seoul Composite, Taiwan Weighted and Shanghai Composite rose, Hang Seng, Straits Times and Nikkei slipped.

US shares slipped yesterday, after news that sales of existing homes slipped last month for a fifth straight month stirred concerns about the strength of the economy. The Dow Jones industrial Average, the Standard&Poor's 500 index and the Nasdaq Composite index are all in the red.

''Volatility is expected to remain high in the next three days ahead of the expiry of this month's derivatives contracts day-after tomorrow,'' market participants said. India's largest aluminium manufacturer Hindalco Industries advanced 3.10 per cent to Rs 153 on 12.08 lakh shares. It was the top gainer from the Sensex pack. Analysts say the company plans to make inroads into supplies for the car market which has so far been dominated by steel manufacturers. Hindalco will soon make high-grade aluminium products for the body-in-white segment for cars.

India's third largest pharma company in terms of net sales, Cipla was up 0.15 per cent to Rs 170.55 on reports that company will replace all products with chlorofluorocarbons ahead of Montreal Protocol ban deadline.

ICICI Bank, the country's largest private sector bank in terms of net profit, extended early fall. It lost 2.89 per cent to Rs 858.20 on 11.72 lakh shares. It was the top loser from Sensex pack. The bank got a setback today, after the Reserve Bank of India made a strong case against intermediate holding companies to float holding companies for their insurance and mutual fund business. The regulator said any clearance for foreign investment in such a holding company by other regulators could be subject to ''legal review''.

India's largest listed cellular services provider Bharti Airtel declined 0.34 per cent to Rs 874. The Telecom Regulatory and Development Authority (Trai) has alleged that the company had violated the national numbering plan that designates short codes and numbers for value-added services. It has reportedly asked the company to immediately discontinue some services.

Crude oil prices were steady at above USD 72 today, with US refinery shutdowns reviving supply concerns. US crude rose 6 cents to USD 72.03 a barrel. London Brent gained 7 cents to USD 71.02 a barrel.

UNI