Sensex up 89 points

STOCK REPORT

Major indices were up 1 per cent for the second consecutive session led by gains in metal, pharma, auto, and engineering stocks.

Over 1 per cent gain in Oil and Natural Gas, a key Nifty component, also aided the rise. Sensex managed to surpass its previous record high fractionally, thereby creating a new life-time high of 10195.51.

The index ended at 10168.11, up 88.81 points, or 0.8 per cent from Monday. National Stock Exchange's Nifty ended 3035.50, up 29.65 points, or 1.0 per cent.

The total traded turnover on both the exchanges was nearly Rs 8,800 crore, slightly higher than Rs 8,509 crore on Monday, but lower than Rs 11,163 crore on Friday.

Reliance Capital Ventures, which was listed on the bourses today, logged the highest volumes of nearly 52 million shares on both NSE and BSE combined. The stock ended at Rs 22.25 on the NSE.

"Local funds are deploying quite a significant amount of money into the market. Steady foreign fund inflows are further supplementing the rise," said Shiv Kumar Gupta, dealer, Jet Age Securities.

Local funds have net bought Indian shares worth around Rs 300 crore since February 14. However, most players were cautious at these levels.

"I expect the market to take a slight dip as the budget approaches. There are speculations that the government may increase the securities transaction tax or re-introduce the long-term capital gains tax. Although the possibility seems remote constant speculations could result in some cooling off," Gupta said.

Bajaj Auto shares spurted over 6 per cent as speculations of a bonus and stock split floated around.

Wipro, which had risen 2 per cent in early trade in news that it has acquired US-based tech infrastructure consulting company cMango Inc in an all-cash deal of $20 million, ended only on marginal gains.

Analysts said the acquisition would only give Wipro's financials a limited boost, though it would expand Wipro's service offering and open a revenue stream.

Steel Authority of India and Tata Steel ended up 5 per cent and 2 per cent respectively on expectations of hike in product prices, as China's steel products export prices have firmed up.

GlaxoSmithKline Pharmaceuticals rose 2 per cent on media report that the government has approved importing parent Glaxo's version of bird flu drug Relenza.

Oil marketing shares Hindustan Petroleum Corporation and Bharat Petroleum Corporation nearly erased initial 1 per cent losses-spiralling global crude prices-to end almost flat.

Jet Airways was the biggest Nifty loser, down 1.6 per cent. Nifty heavyweights Hindustan Lever and Reliance Industries ended down 0.6 per cent. Infosys Technologies also ended down marginally.

Dealers said good amount of foreign fund buying in ONGC had boosted the stock from initial sluggishness and led ONGC to end up 1.4 per cent.

CNX Midcap Index ended up 0.7 per cent at 4340.35. Birla Corp, up 9.5 per cent, was the biggest gainer in the index. Sesa Goa, up 4 per cent, was the next best.

SPIC shares zoomed 20 per cent to Rs 29.20 on media reports that ONGC is conducting due diligence to buy SPIC Petro, unit of SPIC for Rs 1200 crore.