Select stocks aid rally, Sensex up 17 pts

Our Markets Bureau

Mumbai, Oct 15: Select old economy stocks and domestic pharmaceutical companies helped the market to rally on Monday for the fifth consecutive day, guiding the Sensex to close in the positive territory at 2976.30 points, up 16.91 points from its previous close. The S&P CNX Nifty closed at 963.40 points, up 3 points.

The small rally negated the profit-booking witnessed in most frontline software stocks. Dealer’s said, the market moved in the narrow range as software stocks, after rallying sharply last week, were seen getting tired.

The Sensex opened weak at 2951.69 but rallied on back of gains in select old economy stocks to climb to an intraday high of 2983.33 points. It slipped to its intra-day low of 2940.08 points before closing higher at 2976.30. The S&P CNX opened at 963.65 points and hit an intraday high of 966.15 points and a low of 954.35 points.

Maulik & Kaji Financial Services director Maulik Sharedalal said: “The market was dull and movement was range bound on Monday, with a stock specific movement and not sector specific movement, with a average volume. I expect a 100 point correction from the current levels in the Sensex if not more. Still market players are applying a cautious approach towards the market, the rise in the last consecutive five days, might be termed as a near term pullback after a sharp fall following the terrorist attacks in the US.”

Frontline software stocks, like Infosys, Wipro, Global Tele-Systems and Satyam Computer closed with losses on profit-booking after rallying sharply last week.

Dealers said, non-industrial sectors are waiting to take a cue from HLL’s earnings number. The company is going to unveil it third quarter to September earnings number on Tuesday. HLL closed down Rs 0.95 at 223.75.