Sensex on positive zone once again

Mumbai, Sep 6: Domestic bourses scaled higher today as buying continued throughout the day, tracking Asian markets that rebounded from initial sluggishness and the inherent strong fundamentals of the Indian economy.

The Bombay Stock Exchange (BSE) 30-share Sensex advanced 170.16 points, to settle higher at 15,616.31, after opening lower at 15,383.18 from its previous close of 15,446.15.

Similarly, the National Stock Exchange (NSE) S&P CNX Nifty also surged by 42.75 points to settle above the 4,500 mark at 4,518.60 after opening marginally lower at 4,475.70 from its previous close of 4,475.85 .

BSE data shows that the market breadth was strong with 1,698 shares advancing as compared to 1,050 that declined, while 74 remained unchanged. The total turnover amounted to Rs 4,646 crore.

From the 30-scrip Sensex pack, 27 advanced while the rest declined.

Reliance Energy, Grasim, ACC, Ambuja Cement, India Cements, Birla Corporation, HDFC, ITC, Ranbaxy Laboratories, SBI, Tata Motors, Mahindra&Mahindra, Bajaj Auto, Maruti Udyog and Reliance Industries were the day's leaders, while Bharti Airtel slipped.

European markets showed mixed trading today. Among key European indices, United Kingdom was down 0.11 per cent to 6,253.50 and France slipped 0.23 per cent to 5,538.53, while Germany's DAX rose 0.34 per cent to 7, 613.93.

All Asian markets rebounded from lower levels today. Japan's Nikkei was up 0.61 per cent at 16,257, Taiwan's Taiwan Weighted rose 1.16 per cent at 9,017.08, South Korea's Seoul Composite climbed 1.24 per cent at 1, 888.81 and the Shanghai Composite surged 1.56 per cent at 5,393.56. However, Hang Seng index was down marginally by 0.08 per cent at 24,050.40.

US markets finished lower yesterday, after weak US housing data revived concerns about the health of the world's biggest economy.

The Dow Jones Industrial Average slipped 143.39 points, or 1.07 per cent, at 13,305.47. The Standard&Poor's 500 index fell 17.13 points, or 1.15 per cent, to 1,472.29, and the Nasdaq Composite index fell 24.29 points, or 0.92 per cent, to 2,605.95.

India's largest private sector power utility company by sales, Reliance Energy, advanced 4.91 per cent to Rs 863.80 on 14.75 lakh shares. As per reports, the firm is planning to hive off its engineering, procurement and construction division into a new company. It was the top gainer from the Sensex pack.

Cement stocks held on to gains after opening firm on healthy dispatches last month. The AV Birla group diversified company Grasim vaulted 4.25 per cent to Rs 3,186. Other cement companies ACC, Ambuja Cement also edged higher.

Ranbaxy Laboratories, India's top drug maker by sales, climbed 3.76 per cent to Rs 415, on a report that the drug maker had submitted an initial bid for US-based Bradley Pharmaceuticals.

State Bank of India (SBI), the nation's largest banking entity by net profit, advanced 2.60 per cent to Rs 1,635.90. Analysts say it will raise about Rs 1,500 crore through a bond issue this week. The issue will be part of SBI's Tier II capital and the size of core issue likely to be set at Rs 1,000 crore with over subscription option of Rs 500 crore.

India's largest private sector entity by market capitalisation and oil refiner, Reliance Industries, rose 1.51 per cent to Rs 1,987 on 5.05 lakh shares. RIL has completed acquisition of Indian Petrochemicals Corporation (IPCL), a move that could help it control two-thirds of the country's petrochemical market.

India's largest aluminium producer by sales, Hindalco Industries, was the top loser from the Sensex pack. It lost 1.37 per cent to Rs 154.80 on 9.90 lakh shares.

India's largest listed cellular services provider in terms of profit, Bharti Airtel, slipped 0.28 per cent to Rs 846.60. As per recent reports, in the Karnataka circle, Bharti Airtel cannot acquire any operator as it already has a 39.7 per cent market share.

The 40 per cent market share cap suggested by the Telecom Regulatory Authority of India (Trai) is likely to make mergers between existing telecom operators extremely tough.

The European Central Bank holds a policy meeting later in the day and is widely expected to hold rates unchanged at 4 per cent. There are hopes that the US Federal Reserve will cut the fed funds rate by at least a quarter percentage point later this month on Sep 18.

Crude oil prices rose to USD 76 a barrel today, buoyed by expectations that US crude and gasoline inventories fell last week.

US crude rose 33 cents to USD 76.06 a barrel while London Brent crude was up 21 cents at USD 74.55 a barrel.

UNI