Sensex powers to all-time high

Tech, FMCG, cap goods biggest gainers.

Technology, capital goods, metal and telecom scrips were among the biggest gainers on Monday, pulling the Bombay Stock Exchange (BSE) Sensex to an all-time closing high.

Dealers said technology scrips gained all across Asia, following a strong lead on the Nasdaq on Friday. Agencies report that the Morgan Stanley Capital International (MSCI) Asia-Pacific Index, which tracks more than 900 companies in the region, climbed 1.3 per cent, its highest close since November 2000.

Elsewhere in Asia, Japan's Nikkei gained 0.7 per cent to 11,632.20, its highest close since July 2, 2004, and Taiwan's index surged 1.29 per cent to 6,112.40. Hong Kong's Hang Seng gained 1.24 per cent to 14,017.23 and South Korea's Seoul Composite gained 1.85 per cent to 964.79.

The Bombay Stock Exchange (BSE) Sensex closed at 6,679.33, with end-of-day gains of 0.69 per cent, after hitting the day's high of 6,719.20. Select FMCG and consumer durables counters witnessed selling pressure.

In the 30-scrip Sensex basket, 19 scrips closed with gains, though the breadth of the market was negative, with losers outpacing gainers 7:5 on the BSE.

HLL was the biggest loser in the Sensex basket, falling 2.19 per cent to close at Rs 151.90, followed by Maruti Udyog, down 1.52 per cent to Rs 490.80, ACC fell 1.31 per cent to Rs 373.75, ITC was down 1.30 per cent to Rs 1316.55 and HPCL fell 1.07 per cent to Rs 369.80.

Gurunath Mudlapur, head of research at Khandwala Securities, said: "Buying was seen as the tech sector outlook has improved on the back of good results and guidances. The rupee appreciation has also been muted so far this month."

BHEL was the biggest gainer in the Sensex basket, rising 5.11 per cent to close at Rs 860.30, followed by Infosys Technologies, up 3.12 per cent to Rs 2168.85, Bharti Tele-Ventures gained 2.95 per cent to Rs 214.80, Satyam Computer was up 2.71 per cent to Rs 421.45, Hero Honda rose by 2.43 per cent to Rs 563.75 and Wipro gained 2.27 per cent to Rs 711.25.

One in ten stocks traded on the Bombay Stock Exchange closed a new 52-week high yesterday. In other words, of the 2,500 actively traded stocks on the BSE on Monday as many as 265 stocks recorded new 52-week highs. Of these, 127 stocks were traded at their all time highs while 114 scrips posted a two year's high.

In the 30-scrip Sensex basket, BHEL closed at Rs 860.30, Grasim Industries at Rs 1368, ICICI Bank at Rs 380.85 and Tata Steel at Rs 404.45 were at their life-time highs on Monday. ABB closed at Rs 1288.70 and SAIL at Rs 65.55 were among the S&P CNX Nifty scrips, to have scaled all time highs.

A group-wise classification shows that 17 stocks from group A, 31 from B1, 13 from B2 and remaining 66 from S,T and Z group were at all time highs yesterday.

Mudlapur said there was a global shift towards technology stocks, as investors wanted to hedge against a meltdown in commodity and metal stocks which have been riding on China's demand. The news of Chinese provinces reducing their GDP growth forecast for 2005 could have prompted a switch of investments into sectors like technology, Mudlapur added.

Volumes were lower than on Friday in the cash segment of the bourses; the BSE reported a turnover of Rs 2334.34 crore and the NSE reported a turnover of Rs 5043.73 crore.

Pradeep Madhav, executive vice president at IDBI Capital Market said, "A strong Nasdaq closing on Friday due to better guidance issued by Cognizant Technologies led to the domestic market opening firm with technology and telecom stocks leading the rally. The IT index spurted by over 2.5 per cent led by gains in Infosys, Wipro, Satyam & HCL Technologies.

In the telecom sector, Bharti Tele-Ventures & VSNL saw smart gains. Metal stocks also rose due to firming up of metal prices internationally. However, a strong closing indicates that the markets are in a bullish trend ahead of budget.

A dealer from Darashaw said, "Some institutional activity is being seen but most players are waiting for the Union Budget before taking big calls."

Strong buying support from foreign funds in the last few sessions has helped the market record a strong rally but the undertone of the market appeared cautious, brokers said.

But a lack of active domestic participation has also raised concerns among market players, they added. Foreign institutional investors were net buyers of Indian shares worth Rs 57 crore on Friday as per data from the Securities and Exchange Board of India website.