Sensex zooms 150 pts on growth prospects

Investors' money blocked in recent IPOs flowing back into the market.

Encouraged by strong economic growth data, the Bombay Stock Exchange (BSE) Sensex rallied by a massive 2.69 per cent (150.25 points) to close at 5740.85, on the first day of the new fiscal year.

State-owned telecom company MTNL was the biggest gainer in the Sensex basket, gaining a solid 7.57 per cent to Rs 137.90. Of the 30 scrips in the Sensex basket, 28 ended the day with gains.

The odd ones out were ONGC, which lost 1.12 per cent to Rs 831.05 on continuing confusion over the allotment and credit of shares, and Reliance Energy (formerly BSES), whose scrip's price fell 0.37 per cent to Rs 764.

The breadth of the market was extremely positive with gainers outpacing losers 1,446:280. Strong buying support by funds and traders who had liquidated their positions in the recent past because of year-end considerations helped the market.

Players also attribute the rise to expectations of good financial results for the quarter ended March 2004, and increased liquidity in the market.

Market sources said investors' money blocked in the recent slew of public offerings had started flowing back into the secondary markets.

Jitendra Panda, vice-president, Motilal Oswal Securities said, "The markets look good as the selling pressure seems to be over and we can look at an upside from here." He added that investors must look to buy at every correction/lower levels.

Brokers say that telecom, metal, cement and automobile stocks were in the limelight, rallying on optimism over robust economic growth.

Heavyweight ITC moved up 3.80 per cent to Rs 1,081, Reliance Industries was up 3.33 per cent to Rs 555.95, State Bank of India was up 2.01 per cent to Rs 617.90 and Hindustan Lever was up 0.36 per cent to Rs 154.80.

Power equipment maker Bhel was up 5.38 per cent to Rs 637.05 and HPCL was up 3.02 per cent to Rs 522.95. The Bharti Tele-Ventures scrip was up 5.01 per cent to Rs 162.40.

The Steel Authority of India scrip was up 6.04 per cent to Rs 34.25 and Tata Steel gained 2.5 per cent to Rs 392.95. Hindalco was up 5.52 per cent to Rs 1,284.35.

Among sectoral indices, the BSE consumer durables index was the biggest gainer, up 3.67 per cent over its previous close, followed by the capital goods index which gained 3.51 per cent. The BSE Tech index was up 3.24 per cent.

Satyam Computer surged 4.05 per cent to Rs 305.40, Infosys Technologies moved up 3.42 per cent to Rs 5,107.10 and Wipro was up 0.86 per cent to Rs 1,371.05, gaining ground on value buying after recent weakness on account of the strengthening rupee.

Cement stocks were in demand as the markets bet on a price hike in view of the increased construction demand. The ACC stock was up 2.69 per cent to Rs 261.40, Grasim was up 2.52 per cent to Rs 1,096.35, L&T was up 2.19 per cent to Rs 586.90 and Gujarat Ambuja Cements was up 1.98 per cent to Rs 301.10.

Data on annual sales figures released today brought the spark back to auto counters, with TVS Motor up 5.63 per cent to Rs 90.95, Maruti Udyog up 3.99 per cent to Rs 516.80, and Hero Honda Motor was up 2.31 per cent to Rs 501.80.