Good Q3 results prop Sensex

Mumbai, Jan 27 | Updated: Jan 28 2005, 05:30am hrs
Value buying at lower levels in stocks across the board accompanied with significant rollover in the derivatives segment on the expiry of the January contract on Thursday boosted the market sentiment. The 30-share BSE Sensex gained 76.45 points, or 1.24% to close at 6,239.43 also on the back of good quarterly earnings from companies. The Nifty too, closed up 24.65 points, or 1.28% at 1956.50.

Opening with a positive gap, the markets moved up on the back of some broad-based buying in early trade, and the Sensex hit a high of 6,252.39 late in the afternoon. The Nifty saw a high of 1961.75.

All the sectoral indices on the BSE ended in positive territory. But the Bankex (up 0.13% at 3,443.52) under-performed the other indices as most of the private as well as the PSU banks turned in disappointing third quarter results.

There was some amount of profit booking continued by the foreign players in steel, bank and oil and gas sector stocks. FIIs remained net sellers to the tune of Rs 281.80 crore on Tuesday.

The market breadth was positive for the second consecutive day. About 1,747 shares advanced, and 555 shares declined. 61 shares remained unchanged. The turnover on both the bourses improved significantly as BSE recorded a turnover of Rs 2,246.44 crore as against Rs 2,061.99 crore reported on Tuesday while the NSE recorded a turnover of Rs 5,948.39 crore against previous days turnover of Rs 4,498.50 crore.

Vivek Mahajan, assistant vice president, IL&FS Investsmart Ltd said, There was some amount of value-buying today and some profit-booking in the select counters while FIIs were seen buying in select IT counters. The global markets played their part as well. A pre-budget rally going ahead from here is also expected. The Nifty has closed below a crucial resistance level of 1960 today, and the next few days would be important.

Surging in the last leg of the trading session, index heavy-weights like Ranbaxy which closed (up 3.88% at Rs 1,022.05) and Hero Honda (up 2.73% at Rs 537.30) gained sharply. Telecom major Bharti Tele-Ventures rose to Rs 212 after the company reported better than expected results. It finally closed the day, up 3.17% at Rs 209.75. Tech giants Infosys, Wipro, and Satyam were in demand since the beginning of the trading session.