Oil firms lead rally

STOCKS REPORT

Hopes of big dividend payouts by state-run oil companies helped key indices to end higher on Thursday.

The 30-share BSE Sensitive Index (Sensex) surged with a jump of 36.77 points, or 0.68 per cent, at 5,455, its best closing since April 11. With today's rise, the Sensex is up 61.5 per cent in 2003, making it Asia's second highest gainer.

On the National Stock Exchange (NSE), the NSE S&P CNX Nifty index rose 22.85 points to end at 1,756.10. Gainers outpaced losers by a ratio of over two to one in brisk trades.

"The market is betting on huge dividends from state companies and that has sparked the big rally," said Alok Bahl, vice-president, Quantum Stocks Pvt Ltd.

Sentiment was upbeat on sustained foreign fund inflows which have belied expectations of a traditional slow down ahead of the year end, he added.

Meanwhile, foreign funds bought a net $134.91 million of local shares on Wednesday, taking their net investments in December to $770.5 million, outpacing net inflows of $701.4 million in the last month.

With this, foreign funds net investments in 2003 so far has touched $6.06 billion, the highest annual addition since foreign portfolio investment was allowed a decade ago.

Hindustan Petroleum vaulted 5.66 per cent to Rs 433.30, but off its day's high of Rs 442.35 on institutional buying interest on the counter throughout the session. The company's board is meeting next week to consider an interim dividend.

Bharat Petroleum jumped 12.86 per cent to Rs 456.45. The company's board is meeting on December 26 to consider interim dividend.

Kochi Refineries climbed 7.12 per cent to Rs 18.65 on reports that the company is planning to increase its refining capacity to 10 million tonnes per annum by 2005.

Oil and exploration major, ONGC gained 5.39 per cent to Rs 712.10. Buying interest spread across other state-run firms too.

BHEL climbed 2.15 per cent to Rs 467.75 after the company said that it has bagged five contracts for a total of over Rs 2,700 crore from the National Thermal Power Corporation.

Elsewhere, cement shares were boosted by hopes that strong demand from housing and infrastructure sectors would combine with better prices this quarter to drive up earnings.

Larsen & Toubro, the industry leader, rose from an intra-day low of Rs 433 to Rs 462.90 but settled at Rs 460.05, up 5.83 per cent over its Wednesday's close.

Grasim Industries added 2.26 per cent to Rs 951.50. Gujarat Ambuja Cements surged 2.16 per cent to Rs 300.15 and ACC rose 1.45 per cent to Rs 228.05.

Select index heavyweights too witnessed hectic action. Reliance Industries rose 0.93 per cent to Rs 506.35. State Bank of India vaulted 0.57 per cent to Rs 479. But FMCG giant Hindustan Lever fell 0.55 per cent to Rs 198.75 on profit booking after recent gains.

Tata Steel, the largest private sector steel maker, edged up 3.20 per cent to Rs 396.25 on reports that the company has started searching for a location to set up a shore-based greenfield mega steel plant.

Bharti Tele-Ventures surged 3.16 per cent to Rs 93.10, but ended off its day's high of Rs 94.65. A block deal of 41 lakh shares was reported on the counter on BSE in early trades, at Rs 92, today.