Sensex hits a new record close

Sensex hits a new record close
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First Published: Mon, Oct 01 2007. 09 15 PM IST
Updated: Mon, Oct 01 2007. 09 15 PM IST
Closing
Mumbai: In choppy trades, the Bombay Stock Exchange benchmark Sensex gained over 37 points today as funds purchased stocks of state-owned blue-chip companies.
Sensex remained volatile throughout the session, witnessing a surge to 17,425.34 points and slide to 17,144.58 before closing at 17,291.10 with a gain of 37.52 points.
In similar fashion, the second wide-based National Stock Exchange index Nifty closed 47.60 points higher at 5,068.95, after touching the day’s high of 5,098.30 and a low of 5,001.35.
Nifty was distinctly firm after its candidate Reliance Capital surged by Rs 224.15 at Rs 1,808.65 on heavy buying by funds and interested parties.
The major support to the market came in from stocks of public sector undertakings by rising 161.18 points at 8363.25 followed by oil and gas index by 120.64 points at 9682.59.
However, other sectors like banking, consumer durables, information technology, FMCG and auto remained weak and settled in negative zone.
Late Afternoon
Sensex advanced 111.04 points, or 0.6%, to a record 17,402.14, its tenth day of gains, as of 3:45 pm. The index earlier fell a much as 0.9%. The S&P/CNX Nifty Index on the National Stock Exchange added 58.45 points, or 1.2% to 5,079.80.
Reliance Energy, the nation’s second-biggest power utility by market value, climbed to a high after the directors approved the initial share sale of its unit Reliance Power Ltd. to expand generating capacity.
“Companies in this sector will continue to do well because of rising demand and expansions that have been planned for the next five years or so,” said Gautami Desai, who manages the equivalent of $ 223 million at UTI Mutual Fund in Mumbai.
Reliance Energy, India’s worst-performing benchmark stock last year, is the best performer in 2007, climbing 160% on expectations it will benefit from a government programme to invest $ 100 billion in electricity generation, transmission and distribution. The shares rose Rs144.6, or 12%, to 1,350.10.
Morning
Mumbai: Sensex, after hitting a new intra-day peak of 17,391.02 points, fell due to profit selling amid continuing exchange of words between the UPA government and its key ally CPI-M over the nuclear deal.
BSE 30-share barometer opened strong at 17,356.99 from last Friday’s close of 17,291.10 and touched its high of 17,391.02 before quoting at 17,201.91 at 1030 hrs, a fall of 89.19 points from the previous level.
The broad-based, S&P CNX Nifty of the National Stock Exchange also touched a high of 5,053.85 before being quoted at 5,018.25 from previous close of 5,021.35.
At 1100 hrs Sensex was at 17,166, down 125 points while the broad-based Nifty stood at 5,007, down 14.5 points.
Resurfacing political concerns over the Indo-US nuclear impasse weighed on the market sentiments, brokers said.
Strong remarks have emanated from Left quarters warning the government not to operationalise the deal without taking into consideration the findings of the Left-UPA Committee, which is scheduled to meet here on 5 October.
Notwithstanding Left’s scathing criticism, the UPA has asserted that the outside supporters should be “confident” about government’s ability to secure India’s national interests. It also claimed that successive governments have resisted external pressures on nuclear issues.
After recovering in last couple of sessions, IT counters once again bore the brunt of selling following smart surge in the rupee this morning.
Banking counters also attracted fresh profit-booking at higher levels after recent rally.
Foreign institutional investors (FIIs) continued to be net buyers and they gave support to select shares.
Small-cap and mid-cap stocks were in the limelight on some investment buying.
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First Published: Mon, Oct 01 2007. 09 15 PM IST
More Topics: Stocks | Shares | Nifty | Sensex | Reliance Energy |