Bourses Rise For Fifth Day; Sensex Crosses 3,750 Level

Mumbai, July 29: | Updated: Jul 30 2003, 05:30am hrs
The domestic markets bounced back sharply to record their fifth straight gains on Tuesday, even after slipping slightly in intra-day trades. The benchmark Sensex ended the day over the critical level of 3,750, a resistance level that has proved to be crucial for the domestic markets for the last two years.

However, after slipping below the 3,700 mark, gains in HLL, Infosys, Reliance and SBI helped the Sensex bounce back smartly from the low of 3,694.44 to intra-day high of 3,771.35 before closing at 3,764.44, gaining 24.68 points at the end of the trading session.

The National Stock Exchanges (NSE) S&P CNX Nifty Index moved up by 5.55 points to close at 1,174.75 points.

As per dealers, the recovery came in the second half of the session and eventually ended with a decent gain following buying support for stocks at lower levels, especially in the old-economy segment. Heavyweights like HLL and RIL also contributed to the markets gains after early weakness. Marketmen predict plenty of volatility this week due to expiration of derivatives contracts on Thursday, but feel over the next 3-4 months, the index may see much higher levels.

Among other newsmakers on Tuesday were old-economy pivotals like Hero Honda (up 1.02 per cent to Rs 248), Hindalco (up 0.53 per cent to Rs 820.85), Bajaj Auto (up 0.46 per cent to Rs 577.40) and Telco (up 0.46 per cent to Rs 230.45) which ended with modest gains on selective buying support at lower levels after early weakness.