Sniffing 7000

STOCKS REPORT

Strong buying in frontline stocks and renewed buying interest in technology and metal stocks helped the Sensex gain another 46.8 points in Wednesday's trading. The Sensex closed above 6900 levels.

Brokers said, the Sensex may soon touch the 7000 levels on the back of liquidity provided by institutional investors which is driving up the markets. On the National Stock Exchange, both the mid-cap and small indices closed at all-time highs, with the Nifty ending 16.3 points higher at 2128.65.

Sandeep Neema, fund manager, JM Mutual Fund said, "Market looks positive as the valuations are still not stretched and there is enough liquidity provided by institutional investors."

Frontline stocks witnessed buying interest with 8 of the 30-share Sensex basket ending negative. Among the big gainers in the Sensex basket, Bharti Tele was up 5.45 per cent to Rs 239.75 on reports that the government was keen on introducing a uniform licensing policy for telecom companies.

Refinery and oil marketing company Hindustan Petroleum Corporation gained 1.2 per cent to Rs 321.50, Tata Power was up 2.71 per cent to Rs 388.90, Grasim was up 2.65 per cent to Rs 1,118.30, Dr Reddy's was up 2.01 per cent to Rs 737.40, Tata Steel was up 1.63 per cent to Rs 339.60.

A leading market operator said, "In the next leg, the domestic money will drive the markets to new highs."

The breadth of the market was positive with 1,358 stocks advancing as against 1,190 stocks declining.

Among the indices, IT and metal index were the biggest gainers. Technology stocks rallied on back of renewed buying interest. Tech major Wipro was up 1.7 per cent to Rs 734.70, Satyam stock was up 1.64 per cent to Rs 481.50, Infosys was up 1.14 per cent to Rs 2,258.05 and TCS was up 0.61 per cent to Rs 1,271.90.

A dealer with a domestic broking firm said, "FIIs have provided enough liquidity in the last few days pushing the markets up against the general perception that the markets may be on correction course. This has forced investors who had gone short in the futures markets to cover their position further pushing the market up."

The Sensex hitting the 7000 level is very likely in the next few trading sessions. But markets may correct as it approaches its earlier all-time high of 6950, he added.

Metal stocks witnessed renewed buying as global metal markets have cooled off a little in the last few days, said a market analyst. Among the gainers, Hindalco was up 1.38 per cent to Rs 1,134.00, Essar Steel was up 5 per cent to Rs 56.85, Bhushan Steel was up 3.7 per cent to Rs 187, Uttam Galva Steel was up 3 per cent to Rs 45.50, Jindal Vijaynagar Steel gained 2.5 per cent to Rs 285.50 and SAIL ended 1.1 per cent higher at Rs 52.

In the auto space, the big gainers were Escorts, up 6.29 per cent to Rs 92.10, Swaraj Mazda was up 5.38 per cent to Rs 358.30, Hind Motors was up 5 per cent to Rs 32.55, Kinetic Engineering was 2.13 per cent to Rs 86.15, Hero Honda was up 1.43 per cent to Rs 547.55.

Banks stock has a mixed day with the BSE Bankex ending marginally lower at 4059.96. Among the losers were, Centurion Bank, down 1.94 per cent Rs 14.63, Bank of Rajasthan, down 1.71 per cent to Rs 54.55, IndusInd Bank, down 1.65 per cent to Rs 71.65, Bank of India, down 1.52 per cent to Rs 107.05 and Kotak Mahindra Bank, down 1.22 per cent to Rs 384.95.

Oil and gas sector stocks witnessed buying at the fag end of the trading on hopes that the government may hike fuel prices.

Among gainers, Petronet LNG was up 5.66 per cent to Rs 42.40, MRPL was up 3.99 per cent to Rs 49.55, HPCL was up 1.24 per cent to Rs 321.50 and Chennai Petro was up 1 per cent to Rs 196.75. ONGC ended 0.69 per cent higher at Rs 936.30.