Sensex Rallies 81 Pts; HPCL, BPCL Dip On SC Order

Mumbai, September 16: | Updated: Sep 17 2003, 05:30am hrs
The domestic bourses seemed undetered by the Supreme Court verdict on the postponement of the divestment of PSU majors HPCL and BPCL as it recovered a substantial part of Mondays losses as buying resumed with a bang on Tuesday after an extremely volatile opening. Tech stocks led the gains on Monday, as buying trickled down to other old economy counters.

As per dealers volatility marked the days trading session, as PSUs witnessed hectic activity in a kneejerk reaction to the Supreme Court order that said the government must obtain parliamentary approval for the disinvestment of HPCL and BPCL.

Down nearly 60 points in early trades, the BSE Sensex eventually ended with a gain of 80.92 points, or 1.93 per cent, at 4,274.75, snapping its three-session losing streak.

The NSE S&P CNX Nifty Index gained 28.70 points to settle at 1,357.95, As per dealers, the market opened steady, but declined sharply around mid-morning following the Supreme Court verdict on the disinvestment of refining PSUs. A renewed buying interest in stocks at the lower levels lifted the market as trading progressed. The FE constituted FEfty index also lost 33.05 points as it closed at 1595.41 on Tuesday. Paras Adenwala, Head, Equities at Birla Sun Life Mutual Fund said The tech stocks seem to be on fire considering that they were late entrants in the rally. Thus, they completely ignored the Supreme Court order as they charged ahead today.

With regards to the PSU oil refinery stocks HPCL and BPCL he specified These two stocks continue to be attractive at their current valuations despite the Supreme Court verdict. It is to be recalled in this context that the oil and gas sector has been giving above average returns in all equity portfolios. he added.

HPCL (down 11.64 per cent to Rs 344.90) plunged, but was off the days low of Rs 326.20, following the Supreme Court verdict that the government must obtain parliamentary approval for the disinvestment of oil refining PSUs (BPCL and HPCL). Over 92.88 lakh HPCL shares were traded today, compared to 19.89 lakh shares traded on Monday.

BPCL (down 2.09 per cent to Rs 323.35) moved off its days low of Rs 284.90 Over 31.23 lakh BPCL shares were traded on BSE today.

Old Economy - steel, automobile and even cement - stocks ended firm on sustained buying interest after early weakness. Heavyweights State Bank of India, Hindustan Lever, Reliance Industries and ITC contributed significantly to the recovery of the market.