Lifted by liquidity

STOCKS REPORT

Setting aside fears of rising crude prices and delayed monsoon, the Sensex zoomed past 6800 levels on strong buying support from technology and bank stocks.

Brokers said, "the market is largely liquidity driven (provided by the FIIs in the past few days) and it defies any fundamental logic."

Strong gains in technology major Infosys Technologies, ICICI Bank, Reliance Industries, HDFC and ITC pushed the Sensex to its three-month high of 6858.24, up 76.99 points.

However, marketmen are advising to remain cautious and book profit at every higher level. A portfolio manager with a domestic broking firm said, "Investors should take a cautious view and book at every higher levels. There are many unheard of stocks buzzing on the street and one needs to take an extremely cautious call."

Mehraboon Irani, vice-president, equity, Darashaw Broking, said, "Liquidity provided by institutional investors is driving up the market. The biggest worry in the short term is that complacency has set in. Investors are chasing stocks without knowing much about their fundamentals. However, Indian markets are in a structural bull phase and the rally will continue for the next 15-18 months."

Reliance group stocks rallied with Reliance Energy being the biggest gainer. The stock was up 3.09 per cent to Rs 566.29, followed by Reliance Industries, which gained 1.96 per cent to close at Rs 558.50.

The Reliance Infrastructure was up 1.07 per cent to Rs 142.30, while IPCL ended 0.15 per cent higher at Rs 169.10. Reliance Capital ended marginally higher at Rs 223.90, up 0.27 per cent from its previous close.

The breadth of the market was positive with 1,322 stocks advancing against 1,227 stocks declining. Among the 30-share BSE basket, only 10 shares ended negative on Wednesday. The volumes were moderate and accounted for Rs 2,298.80 crore on BSE and Rs 4,679.62 crore on the National Stock Exchange (NSE).

The BSE IT index was the biggest gainer, ending 2.1 per cent higher at 2792.71. Infosys Technologies gained 2.8 per cent to Rs 2,297.85, Satyam Computer was up 2.73 per cent to Rs 472.35, TCS was up 1.06 per cent to Rs 1,290.75, while Wipro ended marginally higher at Rs 732.60, up 0.10 per cent.

Private as well as public sector bank stocks ended higher for the second consecutive day. ICICI Bank was the biggest gainer in the Sensex basket, gaining 3.45 per cent to close at Rs 419.70. State Bank of India gained 0.52 per cent to Rs 689.10.

However, HDFC Bank ended lower at Rs 585.55, down 0.59 per cent. J&K Bank was up 6.3 per cent to Rs 363.55, Karnataka Bank was up 5.56 per cent to Rs 90.15, Bank of Baroda was up 4.43 per cent to Rs 205.05 and Syndicate Bank was up 4.1 per cent to Rs 57.05.

Foreign institutional investors were net buyers of Indian shares worth Rs 76.40 crore on Monday while domestic mutual funds were net buyers to the tune of Rs 23.60 crore.

Among the gainers in Sensex stocks, ICICI Bank was up 3.45 per cent to Rs 419.70, Reliance Energy was up 3.09 per cent to Rs 566.30, Infosys was up 2.8 per cent to Rs 2,297.85, Satyam was up 2.73 per cent to Rs 472.35, HDFC was up 2.58 per cent to Rs 827.45, Hindalco was up 2.14 per cent to Rs 1,116.60, ITC was up 2.03 per cent to Rs 1,581.00, Cipla was up 1.7 per cent to Rs 295.20 and Maruti Udyog was up 1.5 per cent to Rs 464.10.

Among index losers, Dr Reddy's lost 1.96 per cent to Rs 711, Bajaj Auto was down 1.7 per cent to Rs 1,265.40, ONGC was down 1.4 per cent to Rs 921.25, HLL was down 0.7 per cent to Rs 142.50, HDFC Bank was down 0.59 per cent to Rs 585.55, Ranbaxy was down 0.43 per cent to Rs 1,083.85 and Tata Power ended 0.3 per cent lower at Rs 382.20.