Sensex surges 100 pts on software gains

Our Markets Bureau

Mumbai, Nov 19: Bourses extended their gains on Monday on buying by speculators and FIIs, guiding the BSE 30 Sensex to surge 100.25 points to close at 3180.23 points, mainly led by solid gains in software stocks and index heavyweight Reliance Industries as slew of positive news poured in the market from both domestic and international fronts.

Globally falling brent oil prices to a nearly two-year low level, inflation at 18-month low at 2.40 per cent, strong overseas market, introduction of individual stock futures and sustained FII buying, have all added to an overall feel good factor in the market.

The sharp fall in crude oil prices to around $17 per barrel is also a major booster in macro-economic level, benefits of which will be moved towards sectors like auto, steel, petrochemical, oil refinery, etc.

The Sensex opened with a firm note at 3211.26 points and immediately touched the day’s low, after which it gained momentum as index heavyweights, led by software stocks, rallied sharply, and in late deals hit an intra-day high of 3293.29. However, profit booking in closing deals pruned some gains.

The BSE Sensex gained around 210 points after the introduction of stock futures on November 9 and has gained over 187 points since Samvat 2058 on Wednesday.

On the NSE, S&P CNX Nifty closed higher at 1068.15 points, up 32.45 points, moving in a similar trend with the BSE Sensex after opening at 1034.20 points, with an intra-day high of 1072 points and a low of 1032.85 points.

The turnover on the NSE rose sharply at Rs 2,675.16 crore, against Thursday’s turnover of Rs 2,254.66 crore.

The turnover in 31 individual stock futures also soared sharply to Rs 282.86 crore, as against Rs 160.60 crore on Thursday, a steady rise in turnover since it was introduced on NSE on November 9.

Arcadia Share & Stock Broker director Anthony Sequiera said: “There is a flow of positive news from all sides, buoying the sentiment. There is lot of speculative, retail and institution participation, the undertone is very bullish.”

“We might see a correction after such sustained rise, but the correction would be a healthy sign for a sustained rise in the future.”
Dealers said the deal between RIL and Grasim of sale of 10 per cent stake to Grasim at Rs 306.60 per share, a 47 per cent premium over Thursday’s close also lifted the sentiment as they see large corporates consolidating their core business and
hiving off their non-core business.

Among the major gainers on Thursday were: Reliance closed up Rs 26.95 at Rs 305 on the NSE, Infosys up Rs 255.85 at Rs 3,507.75, Satyam up Rs 12.25 at Rs 189.75.