BSE Sensex posts marginal gains

Mumbai, Sept 10: The Bombay Stock Exchange (BSE) Sensex today recovered lost ground to post a nominal gain of 6.41 points at 15,596.83, on strong buying in index pivotals, especially Reliance Industries.

The barometer index had actually opened in the red at 15,413.58 from its previous close of 15,590.42 and oscillated between 15,626.28 and 15,363.53 during the day's session.

However, at the National Stock Exchange (NSE), the S&P Cnx Nifty index ended marginally lower by 1.65 points at 4507.85 points from the previous close of 4509.50 points.

The gains were capped since information technology (IT) pivotals stayed weak on fears that the US economy is heading towards recession. The market breadth was strong on the BSE in contrast to its initial weakness.

Besides, Asian markets were mostly in the red today and European markets moved between positive and negative zone. But, foreign institutional investors (FIIs), domestic institutional investors (DIIs) and mutual funds are still on a buying spree since they seem convinced that the trouble in the US economy will not have a strong negative effect on the Indian economy,'' market analysts surmised and added that the market had opened on a weak note following a sell-off in US stocks in it's last trading session, after data showed US firms cut 4,000 jobs last month, the first such decline since August 2003.

BSE data showed that the market breadth was strong with 1,682 shares advancing as compared to 1,083 that declined, while 58 remained unchanged. This is in sharp contract to that of opening session, when 827 shares declined, 570 rose and 31 remaining unchanged. The total turnover amounted to Rs 4,026 crore. From the 30-scrip Sensex pack, 16 gained while the rest slipped.

The prominent laggards of the day included TCS, Infosys Technologies, Wipro, Satyam Computers, ONGC, ICICI Bank, HDFC and Hindalco Industries, while the gainers were ITC, Ambuja Cements, Grasim, Ranbaxy Laboratories, NTPC and Reliance Industries (RIL).

European markets were trading lower. Key benchmark indices in London tanked 0.02 per cent to 6,191.20, Germany slipped 0.22 per cent to 7,420.64 and France declined 0.30 per cent to 5,413.84.

Asian markets recovered from early fall today and were trading on a mixed note. Japan's Nikkei shed 2.22 per cent at 15,764.94, Seoul Composite tanked 2.60 per cent to 1,835.58 and Straits Times was down 1.35 per cent to 3,441.84. However, Hang Seng rose 0.07 per cent at 23,999.70 and China's Shanghai Composite surged 1.48 per cent to 5,355.09.

US stocks tumbled in it's last trading session, following weak job data. Dow Jones Industrial Average tanked 2,49.97 points, or 1.87 per cent, to 13,113.38. The tech-laden Nasdaq Composite index lost 48.62 points, or 1.86 per cent, to 2,565.70.

IT shares were weak on fears that the US economy may be headed into a recession. India's top software services exporter by revenue TCS lost 2.97 per cent to Rs 1045.30 on 2.72 lakh shares. It was the top loser from Sensex pack. Other IT pivotals, Infosys Technologies, Wipro and Satyam Computers also declined, since IT firms derive over 50 per cent of their revenue from exports to the US. From a recent low of 4, 294.86 on Aug 21, the BSE IT index had risen 8.49 per cent to 4,659.70 on Sept 7.

The Indian rupee recovered from an initial fall that was caused by fears about a reversal in risk appetite after weak US job data triggered a sell-off in Asian equity markets. Rupee was hovering at 40.65, a bit stronger than Friday's close of 40.6875/6975.

India's largest cigarette manufacturer ITC advanced 3.80 per cent to Rs 184.60 on 15.44 lakh shares. It was the top gainer from the Sensex pack. As per recent reports, after getting approval from the shipping ministry, Kolkata Port Trust (KoPT) may give land to ITC for expanding its existing cigarette factory India's third largest pharma company by revenue Ranbaxy Laboratories gained 2.21 per cent to Rs 418.95. World Health Organisation (WHO) has included the company's three drugs for treatment of AIDS in its pre-qualification list. With the new additions, 15 Anti Retroviral (ARV) products of the company are now in the WHO's pre-qualification list.

NTPC, the nation's largest power generation company, rose 2.48 per cent to Rs 191.80. The stock hit a record high of Rs 192. As per reports, NTPC is in talks with established players to manufacture power plant equipment.

The largest private sector company by market capitalisation and oil refiner Reliance Industries (RIL) staged a sharp recovery from day's low of Rs 1,945. It rose 1.27 per cent to Rs 1,986.45 on 6.19 lakh shares. It is now at a striking distance of its all-time high of Rs 1999.30 that it had hit on Sept 5. RIL today reached an agreement to acquire assets of Hualon, a leading polyester producer in Malaysia. This acquisition will bestow RIL with more than 7 per cent global market share in polyester fibre and yarn.

UNI