Sensex jumps 240 pts, REL gains 10% on capital infusion plan

Sensex jumps 240 pts, REL gains 10% on capital infusion plan
PTI
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First Published: Mon, Dec 03 2007. 04 49 PM IST
Updated: Mon, Dec 03 2007. 04 49 PM IST
Closing
Mumbai: The Sensex surged 240 points on 3 December, extending gains to a third day in a row, as foreign institutional investors (FIIs) showed signs of return to the bourses on expectations that US Fed may cut rate during its 11 December review.
The Bombay Stock Exchange barometer opened firm at 19,547.09 and gradually moved upwards to end the day at 19,603.41, a rise of 240.22 points or 1.24% from the last close of 19,363.19.
The broader S&P CNX Nifty of the National Stock Exchange also spurted by 102.25 points or 1.77% to close at 5,865.00 from previous close of 5,762.75.
REL hogged the limelight throughout and gained more than 10% on reports that Anil Dhirubhai Ambani Group (ADAG) will invest Rs8,000 crore in the company to part-finance its fund requirements mainly for large infrastructure projects.
FIIs reported inflows of Rs1,072.07 crore on 30 November as per provisional data, while domestic institutional investors bought shares worth Rs688.34 crore. FIIs pulled out a sizable chunk of funds in November.
Market players attributed fresh FII buys to a likely US rate cut by the Federal Reserve on 11 December as well as a fall in global crude oil prices to below $90 a barrel.
IFCI too scored sharp gains on the institution’s decision to bring International Finance Corporation as an investor.
Power, Consumer Durables, Metal and Oil & Gas stocks were prominent gainers on heavy buying support from investors.
Analysts, however, termed this as a pull-back rally and expected range-bound movements till the stability returned in global markets.
Morning
Mumbai: Led by metal, refinery and power stocks, the benchmark Sensex today spurted further by 185 points during late morning trading on the back of fresh buying support from domestic investors.
Positive FII activity on Friday also had a sentimental impact on the market sentiment.
The Bombay Stock Exchange 30-share Sensex was quoted at 19,548.30 at 10.30 am, up 185.11 points over Friday’s close of 19,363.19.
The Sensex opened firm at 19,547.09 and later touched a high of 19,565.42 in early trade.
The broader S&P CNX Nifty of the National Stock Exchange also gained 74.75 points at 5,837.50 at 10.30 a.m. from previous close of 5,762.75.
Fresh buying emerged as global markets remained better with crude oil prices falling below $90 a barrel, market players said.
Reliance Energy was up 6% on reports that the company’s board has approved capital infusion of upto Rs 8,000 crore in two years to part-finance its huge requirements especially for large infrastructure projects.
IFCI was up more than 5% after the company’s board decided to bring International Finance Corporation as an investor.
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First Published: Mon, Dec 03 2007. 04 49 PM IST
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