Indices close at record high

STOCK REPORT

Key indices gained a per cent to end at record closing highs on Monday after touching life-time peaks intra-day. Dealers said the absence of any negative factors kept the sentiment upbeat. Automobile and information technology shares featured among the top performers, while bank shares ended on a mixed note after a firm start.

The Bombay Stock Exchange's 30-share Sensex closed at 8697.65, up 63.17 points, or 0.7 per cent over Friday, while the National Stock Exchange's 50-share Nifty ended at 2630.05, up 28.65 points, or 1.1 per cent. It was the record closing highs for both the indices.

Intra-day, the Sensex and Nifty had registered life-time highs of 8725.75 and 2635.00, respectively. Though the indices started off on a buoyant note, the subdued rise in heavyweights like ITC and Reliance Industries checked the upside. However, other shares, mostly automobile and IT, led the Sensex and Nifty to new highs.

Dealers said the overall volumes remained lower than usual, with the turnover on both exchanges combined aggregating slightly over Rs 84 billion. Including today's 63-point rise, the Sensex has risen close to 6 per cent since September 22 when it had shed 265 points, or more than 3 per cent.

"Sustained foreign fund buying and strong underlying growth have kept up the positive sentiment. Besides, there are no immediate negative developments or change in fundamentals," said a dealer at a local brokerage. Gail (India) emerged as the biggest Nifty gainer, up close to 7 per cent at Rs 280.90, following the transfer of assets of erstwhile Dabhol Power Co. to Ratnagiri Gas and Power""a joint venture between GAIL and National Thermal Power Corp""to restart the defunct Dabhol power project.

Automobile majors Bajaj Auto, Tata Motors, Mahindra & Mahindra and software majors HCL Technologies, Satyam Computer Services and Wipro were among other key gainers.

Dealers said the weakening of the rupee against the dollar was pushing up the shares of IT companies, as they earn a major chunk of their revenues in dollars. The effect of the Indian unit's fall to Rs 44.12 against the dollar was reflected in the 1.7 per cent surge in the CNX IT Index.

Housing Development Finance Corp., Sun Pharmaceutical Industries, ICICI Bank and HDFC Bank were among the laggards in the Nifty. The CNX Midcap Index tracked the broad market trend to end 1.4 per cent higher at 3861.10 points.

Engineers India, HMT, and TVS Motor Co. were the top gainers, up 8-11 per cent. Indiabulls Financial Services and Crompton Greaves were among the major mid-cap laggards.