A frontline boost

STOCKS REPORT

Strong buying in frontline counters helped the benchmark Bombay Stock Exchange (BSE) Sensex rise to a new closing high on Tuesday. Sustained foreign fund inflows and hopes of strong quarterly results have helped the market post record gains, brokers said.

Despite the huge casualty and losses caused by tsunami, the undertone of the market appeared optimistic, they added.

The BSE Sensex hit a high of 6568.57 and a low of 6517.90 in intra-day trades before closing at 6563.48, up 50.45 points (0.77 per cent) from Monday's close.

Volumes were higher than on Monday in the cash segment of the bourses; the BSE reported a turnover of Rs 2,313.26 crore and the NSE reported a turnover of Rs 4,870.30 crore.

Metal, capital goods and oil scrips were among the biggest gainers, while select auto companies recorded losses on Monday. The breadth of the market was positive with gainers outpacing losers 2:1.

In the Sensex basket, 23 out of the 30-scrips closed higher.

Reliance Industries gained 2.18 per cent to close at Rs 528.10 and other Sensex scrip Reliance Energy was up 0.14 per cent to Rs 526.75 on value buying, brokers said.

Stocks of Reliance group companies were in the limelight on Monday after the company decided to consider a buyback of shares at a premium to the market price.

Reliance scrips had eventually posted losses as uncertainty about the family feud over management played on the sentiment, brokers had said.

Foreign funds were net buyers of Indian shares to the tune of Rs 29.60 crore on Monday and have bought shares net worth Rs 5256.50 crore in December so far, according to the data released by the Securities and Exchange Board of India.

Metal stocks, specially steel counters were in the limelight on hopes of a fresh hike in steel prices in January.

Tata Steel was the biggest gainer in the Sensex basket, rising 4.52 per cent to close at Rs 390.95, followed by HPCL, up 4.19 per cent to Rs 403.90,

Hindalco gained 3.49 per cent to Rs 1367.90, HDFC Bank was up 2.74 per cent to Rs 517.90 and BHEL gained 2.46 per cent to Rs 754.95.

ONGC was the biggest loser in the Sensex basket, falling 2.74 per cent to close at Rs 824.40, followed by Bajaj Auto, down 0.83 per cent to Rs 1120.80, HLL fell 0.76 per cent to Rs 143.65, HDFC was down 0.39 per cent to Rs 756.45 and Gujarat Ambuja Cements fell 0.33 per cent to Rs 397.75.