Indices on a record setting spree, Nifty hits 2527 points

STOCK REPORT

After a day's break, key indices on Thursday resumed their record setting run. The Sensex touched a lifetime high of 8294.24 and Nifty a record high of 2527.50. Propelling them were FMCG and IT shares. Reliance Industries, up nearly 3 per cent, added to the gains.

The Bombay Stock Exchange's 30-share Sensex ended at 8283.76, up 94.28 points, or 1.2 per cent, over Wednesday. The National Stock Exchange's 50-share Nifty closed at 2523.95, up 31.50 points, or 1.3 per cent. Both the indices ended at new closing highs.

The session began on a positive note and picked up steam as the day progressed. As it drew to a close, the bulls fired up the market again.

Dealers said, sentiment got a boost from Securities and Exchange Board of India's (Sebi) decision on Wednesday allowing mutual funds to trade freely in derivatives, though the real impact of the move will only be visible later.

"SEBI's move is a huge one. It had been a long-standing demand of the mutual funds," said Sharmila Joshi, assistant vice-president, institutional sales, Asit C. Mehta Investment Intermediaries.

The move finally creates a level playing field for mutual funds vis-a-vis foreign funds, she said. Tata Chemicals and Grasim Industries, up 7 per cent and 4.3 per cent respectively, were the top Nifty gainers. ABB and Bajaj Auto were the biggest losers, shedding 0.6 per cent and 0.9 per cent respectively.

Joshi and other brokers said Tata Chemicals is witnessing good accumulation.

Reflecting the surge in the IT stocks today was the CNX IT Index, which shot up 1.5 per cent to 3280.65.

Tata Consultancy Services, up 3.5 per cent, HCL Technologies, up 3 per cent and Satyam Computer Services, up 1 per cent, were the top gainers among IT shares in Nifty.It was good times for the fast moving consumers goods companies too, with Dabur India and Hindustan Lever making new 52-week highs of Rs 168.95 and Rs 176.80, respectively.

Shares of oil marketing companies Hindustan Petroleum Corp. and Bharat Petroleum Corp., after remaining subdued in the morning with crude oil again crossing $65 per barrel, ended with gains of 0.5 per cent and 1.2 per cent, respectively.

The CNX Midcap Index rose 1.1 per cent to 3853.0. Leading the mid-caps was Glenmark Pharmaceuticals with gains of 11.5 per cent.

It hit a 52-week high of Rs 356.70 on the rumour that Glenmark is close to acquiring a company in Europe. The BSE PSU Index ended up 0.5 per cent at 4947.30, and the BSE Small Cap Index surged 2.1 per cent to 6253.26.