Commodity scrips surge

STOCKS REPORT

The 30-scrip BSE Sensex rose by 76.51 points to end at the day at 5915.47, just a whisker off its all-time closing high of 5933.56 which it had touched in February 2000.

The rally was led by commodity stocks, which went up on expectations of a strong growth in demand. The index opened at 5872.48, went to a high of 5936.41 and hit a low of 5868.27. The 50-scrip Nifty index closed up 32.50 points at 1912.25, a new closing high.

According to the figures available, there were two gainers for every loser on the BSE. Volumes totalled 20.7 crore shares, nearly the same as that of the previous day.

While the overheating in the markets had many worried, market participants said there was still a long way to go for the Indian markets.

Further, the GDP growth rate has not been discounted by the market. The economy has grown by a robust 8.4 per cent year-on-year through the third quarter of 2003. It is expected to grow at seven percent this fiscal year, making it one of the fastest growing in the world.

State-run companies such as GAIL India and Oil and Natural Gas Corporation were among the gainers, with the government appointing merchant bankers for the sale of cross holdings in these companies. ONGC rose 2.7 per cent to Rs 820.80 while GAIL gained 2.9 per cent to close at Rs 267.80.

Cement, automobile and steel stocks were also the main gainers ahead of the release of monthly despatches for December.

Among the cement companies ACC rose 5.3 per cent to close the day's session at Rs 258.65 and Gujarat Ambuja Cements, gained 2.5 per cent to end at Rs 311.45.

Steel Authority rose 2.5 per cent to Rs 52.40 while Tata Motors Ltd gained 0.4 per cent to close at Rs 454.15.

The estimates of the economic growth are bolstered by strong figures. The trade deficit was at $1.91 billion in November and this is expected to widen, which spells good news for stocks though not for bonds.

There are also expectations of good corporate performance for the third quarter of the current fiscal.