Sensex firms up position above 16k, gains 25 points

Sensex firms up position above 16k, gains 25 points
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First Published: Thu, Sep 20 2007. 04 28 PM IST
Updated: Thu, Sep 20 2007. 04 28 PM IST
Agencies
Closing
Mumbai: The benchmark BSE Sensex on 20 September firmed up its position above the 16,000-point level, gaining a moderate 25 points on buying by funds in realty and capital goods stocks.
The Sensex, which registered a historic 653 points rally the previous day, added 25.20 points to settle at 16,347.96. It set a new intra-day peak at 16,415.88 and dipped to 16,261.36 points during the day.
Similarly, the National Stock Exchange index Nifty rose by 15.20 points at 4,747.55. It touched a high of 4,760.85 and a low of 4,721.15 points during the day.
The market received maximum support from realty sector and heavy machinery and power stocks as they remained the centre of brisk trading activity. Realty index gained the most by 579.86 points at 9,044.50, followed by capital goods index by 279.47 points at 14,392.46.
Metal index rose by 176.97 points at 12,723.31, oil and gas index by 95.45 points at 9,019.56 and auto index by 42.54 points at 5,136.85.
Morning
Bangalore: Indian shares climbed to a second straight record high on Thursday, but analysts said the market may lose some momentum as investors lock in gains after the market surged more than 5% in two days.
Software service exporters such as Infosys Technologies Ltd and Wipro Ltd fell after the rupee strengthened past 40 per dollar for the first time since May 1998. The firms get more than half their revenue from the US and a stronger rupee squeezes their profit margins.
State-run Oil and Natural Gas Corp gained 1.6% to Rs916 after sources told Reuters the explorer was likely to sign an agreement with Myanmar next week for the exploration of 3 offshore blocks.
At around 12:40pm, the main 30-share BSE index was up 0.03%, or 75.06 points points, at 16,397.81.
“Trade will be cautious after yesterday’s sharp gains. Some profit booking may be on the cards and we may correct by 200 to 300 points in the next couple of days,” said Sejal Doshi, chief executive of FinQuest Securities.
The index rose 4.17% on Wednesday to a record close, taking its gains to nearly 17% from a three-month closing low on Aug. 21, when investors had been rattled by fears of a credit squeeze and local political troubles.
India Infoline advised clients to be selective and watchful at current levels, saying in a report that valuations did not look cheap by any means.
First Global Securities last month downgraded India’s IT services sector to “underperform”, citing the rupee’s strength.
Every 1% rise in the rupee impacts software services firm’s margins by 30 to 50 basis points, analysts say, and at Thursday’s high the rupee had risen 11% this year.
Infosys, which gets about 60% of its revenue from the United States, fell 2.4% and industry leader Tata Consultancy Services was down 2%.
In the broader market, gainers slightly outpaced losers 1,143 to 1,132 on volume of nearly 102 million shares.
The 50-share NSE index was up 0.19% at 4,741.35, after touching an all-time high of 4,750.15 in opening deals.
Elsewhere in the region, Karachi’s 100-share index edged up 0.02% at 13,130.40 points, while Colombo’s All-Share index shed 0.3% to 2,580.78.
STOCKS ON THE MOVE
* Surana Telecom Ltd was up 6.1% to Rs35.45 after the telecom equipment maker received a Rs120 million ($3 million) cable order from state-run Bharat Sanchar Nigam Ltd.
* Multiplexes operator Pyramid Saimira Theatre Ltd rose 7% to Rs360.20 after the Business Standard reported private equity firms Carlyle Group and Citigroup Venture Capital International were in the race to buy 15% in the firm. Company officials were not immediately available for comments.
* Paper maker Magnum Ventures Ltd listed at Rs36.95, a premium of 23% to the issue price of Rs30 a share. Shares in the company were later trading at Rs57.80.
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First Published: Thu, Sep 20 2007. 04 28 PM IST
More Topics: Sensex | Bombay Stock Exchange | BSE | Wipro | rupee |