Energy, power scrips drive markets up

Key share indices ended at record highs for the ninth straight session, amid alternate bouts of buying and selling. Gains in oil and gas, power and pharmaceutical companies provided support to the market.

National Stock Exchange's 50-share Nifty ended up nearly 1 per cent on account of the higher weightage of Reliance Energy and Oil and Natural Gas. Reliance Energy ended up 12 per cent, while ONGC rallied almost 4 per cent. On the other hand, Bombay Stock Exchange's 30-share Sensex closed flat.

"We expect market to remain volatile until the earnings season begins on October 11 with the declaration of the Infosys results," a dealer said. The Sensex is likely to trade between 17332 and 19527 and Nifty between 5076 and 5740 in the next 6-12 months, Citigroup Global Markets said in a report.

On Monday, the Sensex ended at 17328.62, up 37.52 points or 0.2 per cent compared with Friday. It touched a lifetime high of 17425.34. Nifty ended at 5068.95, up 47.60 points or 1 per cent, after touching an all-time high of 5089.30.

CNX Midcap Index and S&P CNX 500 Index ended up by over 1 per cent each.

The turnover on both the exchanges was roughly Rs 21,000 crore compared with Rs 25,500 crore on Friday. Dealers said that volumes were light as market will be closed on Tuesday due to Gandhi Jayanti. Reliance Energy surged 12 per cent to Rs 1,350 after announcing that its arm, Reliance Power would tap the primary market.

Though it did not disclose the amount to be raised, dealers pegged the value between Rs 11,000 and Rs 12,000 crore.

Tata Power rose 6.5 per cent to Rs 910 on hopes that the Reliance Power issue would increase investor interest in the sector.

Oil and Natural Gas surged 4 per cent to Rs 1,000 on improving earnings outlook and a prospective bonus share issue and stock split. A report that the government may waive the Rs 1,000 crore ceiling of equity investment to give ONGC greater financial autonomy and flexibility in acquisitions and takeovers, also helped, dealers said.

Bharat Petroleum surged 6 per cent to Rs 377 and Hindustan Petroleum ended up 3 per cent to Rs 276 as crude oil prices softened to $81.66 a barrel on the Nymex.

The state-run oil companies on Monday increased aviation fuel prices by up to Rs 1,704 per 1 kl.

Shares of pharma companies, which are considered defensive bets in a volatile market also gained. Cipla ended up 3.5 per cent at Rs 189, while Ranbaxy Laboratories closed up 2 per cent at Rs 442.

Bank shares were major laggards on Nifty on profit sales after surging in the last few sessions. BSE Bank Index, which has gained 20 per cent in the last one month, ended down 1 per cent.

State Bank of India, down 3 per cent to Rs 1,895, was the worst hit on Nifty.