Positives add up

STOCKS REPORT

The market ended higher on Thursday on fresh buying in index heavyweights such as Reliance, ONGC, State Bank of India and Tata Steel which were all news-driven.

The 30-share Bombay Stock Exchange (BSE) Sensex ended 1.64 per cent higher at 4,874.05. The NSE Nifty ended 2.10 per cent higher to close at 1,537.20.

Gainers outnumbered losers 926:613 but on thin volumes of modest Rs 1,767.87 crore at the BSE.

Despite, the US Federal Reserve raised interest rates for the first time in four years on Wednesday by 0.25 per cent, the markets reacted positively to number of positive developments announced by various domestic companies, said an equity dealer with a domestic brokerage firm.

"With the uncertainty about the US interest rate hike out of the way and budget negatives also factored in to a large extent, institutions have stepped up their buying, as valuations are attractive," said Vipul Sanghvi, a senior manager of institutional sales at Fortis Securities.

The ONGC stock closed 6 per cent higher at Rs 666.95 on fresh buying after the international oil prices rebounded more than $1 on Wednesday as top world oil exporter Saudi Arabia, which has boosted supply to cool prices, said that it believed the market has now reached a fair value.

The counter was also active since the morning trade after a huge block deal in yesterday's trading. The State Bank of India stock gained 2.83 per cent to Rs 442.85 on reports that Indian lenders to Dabhol power project "" SBI and IDBI "" are likely to buy out foreign loans of about $310 million at 35 per cent discount. The Reliance Industries stock was up 2.05 per cent to Rs 438.40 after company revised product prices from Thursday.

Tata Iron and Steel ended nearly 2 per cent higher at Rs 306.75 in a volatile trading after the company announced plans to spend $1.7 billion to increase production capacity by half by 2009.

Expectations of good quarterly earnings pushed up stocks of oil refiners, banks and software services, while cement and auto makers gained in anticipation of strong June sales numbers.

Bajaj Auto ended 1.28 per cent to Rs 895.85, while Maruti Udyog was up 0.68 per cent to Rs 405.30 on fresh buying at lower levels after the companies announced impressive sales numbers for June.

M&M was up 1.52 per cent to Rs 448.65 after the company announced the launch of Mahindra World Tractor in the US market. TVS Motor was 1.03 per cent to Rs 68.50 recovering from its day's low of Rs 66 "" on fresh buying at lower levels after early fall.

Tech pivotals continue to hog limelight. Infosys Technologies was up 2.08 per cent to Rs 1,409.45 after the stock turned ex-bonus on the bourses from Thursday, others such as Satyam Computer gained 1.46 per cent to Rs 309.90 and Wipro ended 0.70 per cent to Rs 535.80, also gained ground on fresh buying at lower levels after early weakness.

Cement pivotals Grasim was up 2.82 per cent to Rs 1,040 and ACC ended 1.05 per cent higher to Rs 244.55 on renewed buying interest.