GDP data provide lift

STOCKS REPORT

Fresh buying interest in automobiles, refineries and cement stocks on sizzling growth data last quarter lifted key indices on Wednesday, the last trading session for the financial year 2003-04 (FY 2004). The 30-share BSE Sensitive Index (Sensex) surged 70.16 points, or 1.27 per cent, at 5,590.60.

During the day, the Sensex touched a low of 5,493.12 and a high of 5,599.60 in intra-day trades. The Sensex has vaulted 2,541.88 points, or 83.37 per cent in FY 2004.

On the National Stock Exchange (NSE), S&P CNX Nifty rallied 21.75 points to end at 1,771.90. Traded volumes were low, but the market breadth was positive.

Data released by the government showed the Indian economy grew by 10.4 per cent in the three months ended December from a year ago, driven by a 16.9 per cent rise in the farm sector.

"There was some surprise in the numbers that came out and the market reacted positively to it," said V V L N Sastry, country head, Firstcall India Equity Advisors.

He added that share prices were unlikely to rise much further on the economic growth news as current prices discounted growth of around eight per cent for 2003-04.

Tata Motors rose 3.53 per cent to settle at Rs 485.70 on institutional buying interest. The company has recently announced the completion of the acquisition of Daewoo Commercial Vehicle Company (DWCV), S Korea.

Scooter's major, Bajaj Auto surged 3.06 per cent to Rs 574.35 and bike major, Hero Honda Motor jumped 2.51 per cent to Rs 490.45 on renewed buying amid hopes of strong March sales.

Elsewhere, Hindustan Petroleum gained 3.31 per cent to close at Rs 507.60 on institutional buying interest. Indian Oil Corporation rallied 2.97 per cent to Rs 496.25 and Kochi Refineries edged up 1.34 per cent to Rs 207.25 on reports that oil companies are set to clock record profits in March quarter (January-March) as refining margins reaching 10-year highs of over $38 a barrel.

Second-line refinery stocks too edged up. Chennai Petroleum adding 7.74 per cent to Rs 145.55 and Bongaigaon Refinery jumping 3.68 per cent to Rs 77.45.

Meanwhile, cement stocks too vaulted amid talks that leading producers may hike prices in Mumbai by about Rs 5-10 per 50-kg bag next month.

Gujarat Ambuja Cements, the fourth-biggest cement maker, climbed 2.82 per cent to Rs 295.30 and Larsen & Toubro, the second-biggest producer, jumped 3.06 per cent to Rs 574.35. The share price of Associated Cement Companies rose 1.72 per cent to settle at Rs 254.55.