Positives provide prop

STOCKS REPORT

Improved sentiment helped the market rise for the third straight day on Thursday. Lower oil prices and the strong debut of Tata Consultancy Services Ltd on Wednesday helped the market close in positive territory.

There was some short covering which also helped as August derivatives contracts were rolled over. The Bombay Stock Exchange (BSE) Sensex hit a high of 5,145.60 in intra-day trades before closing at 5,135.45, up 0.92 per cent (46.89 points) from Wednesday's close.

Brokers said the market is reacting to international oil price movement and easing of pressure on oil prices in the last few days has helped improve sentiment with some buying seen in blue-chips.

The passing of the Finance Bill was also a positive, said a dealer, referring to Thursday's approval of the Indian Budget for the year to March 2005.

Blue-chips were in the focus, with 24 out of the 30-scrip Sensex basket closing higher. The broader market was also positive, with gainers outpacing losers 2:1 on the BSE. Volumes were higher, with the BSE reporting a turnover of Rs 1,764.88 crore and the National Stock Exchange (NSE) reporting a turnover of Rs 4,354.34 crore.

The BSE consumer durables index was the biggest gainer, up 2.53 per cent, followed by the BSE Bankex, up 2.01 per cent and the PSU index gained 1.76 per cent. The BSE Metal index was the laggard on Thursday, gaining 0.54 per cent while capital goods index was up 0.59 per cent.

Players said that concern over international oil price volatility and domestic inflation remain and a drag on big positive impetus, capping gains in the market and the indices will remain rangebound in the near term.

Bhel was the biggest gainer in the Sensex basket, up 4.28 per cent to Rs 570.45, followed by ICICI Bank, up 2.85 per cent to Rs 274.15, Bajaj Auto gained 2.81 per cent Rs 906.85 and Hindalco was up 2.45 per cent to Rs 1,179.20.

Heavyweight SBI gained 1.12 per cent to Rs 436.20, ITC was up 1.03 per cent to Rs 1,043.85, HLL gained 0.77 per cent to Rs 111.95 and Reliance Industries was up 0.58 per cent to Rs 460.50.

Tata Steel was the biggest loser in the Sensex basket, down 1.15 per cent to Rs 245.50, followed by MTNL, down 0.98 per cent to Rs 121.70.

Market debutant TCS saw profit booking, hitting a high of Rs 996.70 and a low of Rs 975.30 in intra-day trades before closing at Rs 978.55, down 0.91 per cent from Wednesday's close. More than 22.43 lakh shares were traded on the BSE.