Sensex Reverses 4-day Loss; Nifty Too On Upswing

Mumbai, Sept 29 | Updated: Sep 30 2004, 05:30am hrs
Sustained gains in blue chip shares cheered the bourses on Wednesday as the Sensex surged 65 points, snapping its four-day losing streak. The S&P CNX Nifty gained 27.70 points to end at 1,727.95, recovering from the days low of 1,695.70.

Considerable rollover in the derivatives contract for September series further gave a boost to the market sentiment, dealers said.

Nandan Chakraborty, head-research, Enam Securities, said: Markets have begun ignoring negative news due to favourable government policies on infrastructure.

The prevailing real interest rates and imminent tax-breaks have fuelled retail buying, especially in mid-cap stocks.

The governments austerity measures and direction to public sector undertakings (PSUs) to announce at least 20% dividend and bonus issues also aided the sentiment in these counters, dealers said.

While heavyweights like Reliance Industries and Hindustan Lever led the recovery, technology stocks also helped the market rise after early weakness.

PSU stocks were in the limelight after the government announced plans to collect more dividends from them. Down 34 points at one point, the Sensex eventually ended with a gain of 64.95 points at 5,527.56 points.

Due to intra-day volatility, volumes on the bourses improved with shares worth Rs 2,066 crore being traded on BSE compared to Rs 1,849.86 crore on Tuesday. The breadth of the market was positive with 1,325 gainers and 872 losers.

Among the major gainers of the day, Reliance Industries (up 3.61% to Rs 514.10) climbed as buying resumed at the counter after early weakness. Other heavyweights Hindustan Lever (up 3.25% to Rs 124.05), State Bank of

India (up 2.27% to Rs 373.80) and ITC (up 0.86% to Rs 1,138) also contributed to the gains of the Sensex.

IT majors also gained on the bourses. Wipro (up 2.26% to Rs 583.75) traded higher on sustained buying interest. Other tech pivotals Satyam Computer (up 2.27% to Rs 373.80) and Infosys Technologies (up 1.76% to Rs 1,639.70) also gained ground on fresh buying interest on hopes of improved quarterly results.