Milestone courtesy PSU, auto, FMCG

Mumbai, Nov 28 | Updated: Nov 29 2005, 05:38am hrs
A good rally in the stocks of public sector companies (PSUs), automobiles and FMGC have helped the Bombay Stock Exchange (BSE)'s Sensex to touch 9,000 points in intra-day trades.

BSE PSU, BSE Auto, BSE FMCG, BSE Capital Goods and BSE Consumer durables have outperformed Sensex at the bourses on Monday.

According to the available data with BSE, the 30-share Sensex gained 1.19% to touch 9,000 points in the intra-day trading. As against this, BSE PSU gained by 1.6%, BSE Auto went up by 1.92%, BSE FMCG went up by 2.4%, BSE Consumer Durables went up by 2.46% and BSE Capital Goods index gained 2.71% at the close of the market.

However, the gains in BSE Healthcare and BSE Bankex were not in line with the Sensex as they ended the day posting marginal gains. The BSE healthcare index gained merely 0.22% while the Bankex gained 0.50%.

Commenting on this trend, Shashi Bhushan, head, western region, IL&FS Investmart said, "The policy decision of the Union government, like the divestment of a portion of profit-making PSUs other than Navratnas, and allowing oil companies to download their cross-holdings, have helped the PSU stocks to go northward."

Bank stocks did not join the Sensex rally as the market has been hearing talks about consolidation for the some time now. But, no action has being taken in this regard yet. This has weakened the sentiment of the investors towards the banking counters, dealers said.

Interestingly, the automobile stocks along with other sectors have contributed to the Sensex touching the 8,000-level on September 8. The stocks from the technology and banking sector also played key role in benchmark crossing the 8,000-level.

When the Sensex was at the 7,000-level, the sectors that contributed to its growth were banking, oil and gas and FMCG. The Sensex hit the 7,000-mark on June 21, 2005.