Results hopes provide earnings momentum

STOCKS REPORT

Government-run company stocks were in the limelight on Wednesday, with refinery, metal and information technology counters adding to the glimmer.

Despite a fall of almost 35 points in early trades, good buying interest in blue chip stocks at lower levels combined with short covering led to the Bombay Stock Exchange (BSE) Sensex hitting an intra-day high of 5,533.33, before closing at 5,527.56, up 1.19 per cent (64.95 points) from Tuesday's close.

Blue chips were in focus, with 20 out of the 30 Sensex scrips closing higher. The broader markets was also positive with gainers outpacing losers in the 3:2 ratio on the Bombay Stock Exchange.

The BSE Oil&Gas Index was the biggest gainer, up 2.47 per cent, followed by the metal index, up 2.40 per cent, PSU index up 1.90 per cent and the IT index up 1.79 per cent.

Reliance Industries was the biggest gainer in the Sensex basket, up 3.61 per cent to Rs 514.10, followed by Hindustan Lever up 3.25 per cent to Rs 124.05, Tata Power up 3.16 per cent to Rs 312, Tata Steel up 2.64 per cent to Rs 289.85 and Satyam Computer up 2.27 per cent to Rs 373.80.

Brokers said investors lapped up blue chip stocks, snapping four days of losses, in anticipation of strong earnings for the July-September quarter.

Public sector companies saw buying after the government said on Tuesday it would ask them to declare a minimum dividend and consider bonus shares.

Rajesh Kamdar, a dealer from a local brokerage, said, "There was some short covering on Wednesday, with investors also moving into the front-line stocks from the small and mid-caps scrips, ahead of the earnings season."

Players said bargain hunting at lower levels helped the market recover but investors were cautious ahead of the expiry of the September series futures contracts. Worries about firm global oil prices took a back seat on Wednesday but market sources said that it remains a concern.

Infosys Technologies gained 1.76 per cent to Rs 1,639.70, ONGC up 1.74 per cent to Rs 747.35, Hindalco gained 1.57 per cent to Rs 1,314.40 and the State Bank of India up 1.38 per cent to Rs 472.95.

ICICI Bank was the biggest loser in the Sensex basket, down 1.23 per cent to Rs 288.05, followed by Dr Reddy's down 1.13 per cent to Rs 728.15 and Bharti Tele-Ventures fell 0.95 per cent to Rs 140.30.

Turnover was higher than on Tuesday in the cash segment. The BSE reported a turnover of Rs 2,073.18 crore and the National Stock Exchange reported a turnover of Rs 4,507.47 crore.