Sensex claws back 65 points

Reliance, ONGC lift sentiment.

A recovery in global equity markets, and short covering on the last day of the expiry of June contracts in the derivatives segment helped the stockmarket claw back some ground after four days of losses.

The Bombay Stock Exchange (BSE) Sensex closed 64.55 points (1.3 per cent) higher at 4,708.55. The Nifty ended 24.65 points higher to close at 1,470.75.

The government securities and foreign exchange markets were quiet on Thursday after the Reserve Bank of India's intervention yesterday.

Analysts said yesterday's gains were on the back of smart gains in recently battered heavyweights like Reliance Industries, ONGC, State Bank of India and HDFC Bank.

The Reliance Industries scrip gained nearly 3 per cent to Rs 422.80 after it announced the discovery of 4-5 trillion cubic feet of gas off the Orissa coast and the acquisition of a German polyester firm for about 80 million euro.

The State Bank of India scrip gained 3.4 per cent to Rs 422.60 while ONGC ended 3.2 per cent higher at Rs 635.80 on reports that the government had approved its $200 million project to set up a petroleum product pipeline in Sudan.

Declines, however, marginally outnumbered advances 804:778.

C Jayaram, director, Kotak Securities said, "The market is expected to remain range-bound on thin volumes till the Budget, which will be the first clear statement by the new government on various policy issues."

"The market recovered on short-covering and some bargain hunting in the second half of trading yesterday. The market seems to have seen a temporary bottom, at least till the Budget," said Ambreesh Baliga, VP, Karvy Stock Broking.

Recently hammered bank and automobile stock stocks saw some bargain hunting at lower levels. The HDFC Bank scrip gained 4.6 per cent to Rs 382.20. Public-sector bank stocks, too, gained on bargain hunting.

The Punjab National Bank scrip gained 4.21 per cent to Rs 260.05, Oriental Bank of Commerce was up 3 per cent to Rs 230.40, Indian Overseas Bank was up 2.83 per cent to Rs 39.95 and Canara Bank 1.75 per cent to Rs 119.20.

In a similar vein, automobile stocks, which had come under sustained battering in recent times, regained some ground. The Maruti Udyog scrip gained 4.7 per cent to Rs 381.65, and Hero Honda Motors was up 3.6 per cent to Rs 486.20 on value buying at lower levels.

Meanwhile, telecom stocks were hammered with MTNL crashing 8.14 per cent to Rs 117.90 and Bharti Tele-Ventures plunging 3.14 per cent to Rs 126.30 amid concerns on the outcome of the telecom regulator's recommendation on access deficit charge.

The regulator is proposing to charge telecom operators 2-5 per cent of their total revenue instead of the current 30-80 paise charge on each call.