Sensex ends up 198 pts

Realty, banks, RIL surge

The Sensex has ended (provisional) at 19,068 up 198 points. Nifty has ended up 61 points at 5,792.
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(updated at 1430 hrs)

Markets were trading off their day highs after profit taking was seen at higher levels after the sharp intra-day gains today. The Sensex was up 180 points at 19,049 after touching a high of 19,107. Buying in Indian stocks, by foreign institutional investors as well as government reform agenda buoyed markets higher. Nifty is up 55 points at 5,786 aftet touching a high of 5,807.

Meanwhile, the rupee today rose above the Rs 52 level by gaining 28 paise to fresh five-and-half month high of 51.88 against the American currency in early trade on persistent dollar selling by exporters amid hopes of further reforms measures.

Elsewhere in Asia, the Nikkei surged 1% to 8,824 as auto firms stood out as a weakened yen spurred the nation’s exporters, while regional energy shares were hit by a sharp fall in oil prices. Hang Seng and Straits Times edged up as well.

Broader markets gained in line with the benchmark indices. BSE mid-cap index is up 36 points at 6,740 while small-cap index has gone up 28 points at 7,214.

Most of the sectoral indices, barring IT and healthcare, are trading in the green. BSE realty index is up 4.2% at 1,931. Bankex, consumer durables, power and oil & gas indices are up 1-2% each. However, the IT index has slipped 0.4% at 5,998.

Bharat Heavy Electrical Limited (BHEL) is trading higher by almost 5.6% to Rs 264, also its four month high, on back of heavy volumes. The stock of state-owned heavy electrical equipment maker outperformed the market by appreciating 30% in past three weeks after the government announced multiple reforms to kick-start economic growth.

Index heavyweight Reliance Industries rose 1% at Rs 855 after company said that RIL and Venezuelan state run oil company Petroleos de Venezuela have signed a 15 year heavy crude oil supply contract and a memorandum of understanding with PDVSA to further development of Venezuelan heavy oil fields.

Bharti Airtel is trading higher by 2% at Rs 271 after the Delhi High Court (HC) said not to take action against the company. The high court has granted a stay on a government order asking the telecom major to stop offering 3G mobile services outside their licensed areas through roaming pacts.

Banking shares are the top movers with ICICI Bank, HDFC Bank and HDFC contributing 80 points to the Sensex's upmove. SBI is up 1.7% at Rs 2,336.

On the other hand, Cipla has slipped 3% at Rs 370. Bajaj Auto, Coal India and Hero MotoCorp have slipped 2% each. Mahindra & Mahindra is down 1.3% at Rs 858. According to news reports, M&M is considering Rs 3000 cr investment in SUV manufacturing unit in MP.

Gujarat Gas Company has tanked almost 9% to Rs 307 after British Gas (BG) sold controlling stake in its Indian subsidiary to the state-owned company Gujarat State Petroleum Corporation (GSPC) for Rs 2,464 crore.

Shares of companies engaged in insurance business such as Aditya Birla Nuvo, Max India, Reliance Capital and Bajaj Finserv are in focus on optimism for government action. The Union Cabinet will consider today to approve a proposal to hike the cap on foreign direct investment in the insurance sector from 26% to 49%. Shares of the above mentioned companies have moved up 1-5% each.

BSE market breadth is positive. Out of 2,979stocks traded, 1,656 shares have advanced while 1,198 shares have declined.