FII-funded rebound

STOCKS REPORT

The markets bounced back smartly after yesterday's profit-booking as FIIs and institutional investors turned aggressive buyers in selective sectors such as auto, oil, and bank. Cement and sugar stocks also ended higher on buying support from the retail investors.

Market sources said that FIIs were active in stocks such as State Bank of India, Maruti, ONGC and some selected cement stocks.

The Bombay Stock Exchange (BSE) Sensex managed to cross the psychological mark of 6300 to end 0.68 per cent or 42.75 points higher at 6,304.27. Gainers beat losers 1,172 to 841. The volumes were however, fairly low compared with yesterday's trading. The Nifty ended 12 points higher at 1989.95.

A leading BSE broker said, "The market is expected to move sideways till the next big trigger - Union Budget - is factored in. I expect the pre-Budget rally from mid-January next year."

The broking community is optimistic as market sentiment is expected to be upbeat on expectations of continued foreign fund inflows and strong corporate earnings.

Banking stocks gained further momentum with State Bank of India gaining 2.08 per cent to close at Rs 605.35. The BSE Bankex ended 46.55 points higher at 3,494.87, recovering from the day's low of 3,413.22. Stocks of private sector banks also moved up. ICICI Bank was up 1.65 per cent to Rs 364 and HDFC Bank was up 0.99 per cent to Rs 476.45.

Sugar sector stocks were in the limelight with quite a few stocks hitting the upper circuit limit in Thursday's trading. Ponni Sugar at Rs 30.95, Rajashri Sugar at Rs 47.10, Thiru Arooran Sugar at Rs 122.20, and Dhampur Sugar at Rs 47.10 were frozen at the 10 per cent upper limit of circuit breaker.

Cement stocks rose on expectations of strong despatches and increase in prices. ACC was up 3.28 per cent to Rs 315.15, Grasim was up 1.38 per cent to Rs 1,204.10, while Gujarat Ambuja Cements closed up 1.33 per cent to Rs 383.65.

Among the auto stocks, Maruti Udyog was 4.68 per cent on renewed buying interest, while Tata Motors was up 1.25 per cent to Rs 489.30. Bajaj Auto was also up 0.77 per cent to Rs 1,029.75. As a result, the BSE Auto index ended 24.83 points, or nearly 1 per cent higher at 2,638.50.