Telecom, BHEL charge up

STOCK REPORT

Market snapped its two-day losing streak to end up nearly 2 per cent, bolstered by positive cues from Asian markets earlier today that was followed by some short covering, dealers said.

"The movement was stock specific. Buyers mostly included retail investors and trading volumes were thin, considering the rally today should have brought more buyers to the floor," said Ashish Shah, dealer at Niche Brokerage.Combined turnover on NSE and BSE was Rs 7,600 crore, down 26 per cent from Friday.

"Funds and large investors are still cautious and are yet to take long positions. The market may not have bottomed out yet," said Zeal Mehta of Emkay Shares.

Nonetheless, technically the market looks positive as the Sensex rests on a near support of 12525, said Mitesh Shah of Ventura Securities.

CNX Mid-cap index was up 1.5 per cent and S&P CNX 500 was up 1.6 per cent. Key index gainers were "� Bharat Heavy Electricals, up 6.6 per cent at Rs 2,082, and Reliance Communications, up 5.4 per cent at Rs 397.60.

Shares of BHEL rose on reports it may bag a Rs 680 crore order from Oil and Natural Gas Corp, and on value buying. Reliance Communications rose as the company may have a private investor lined up for its tower business, to be demerged.

The Bombay High Court today, approved the demerger of its infrastructure arm into Reliance Telecom Infrastructure.

Index heavyweights Reliance Industries, ONGC, Infosys rose 1-4 per cent, supporting the rise in indices further.

Telecom shares were up on value buying as investors bought shares with high revenue visibility. "The possibility that the government may cut access deficit charge and license fee supported telecom shares," said Abhijit Chakraborty, head-institutional sales, Khandwala Securities.

The Telecom Regulatory Authority of India has been planning cuts for a while now.

Zee Entertainment shrugged off some of its recent fall as the discounting of DishTV share price is now seen reaching an end, said Shah. The share was up 2 per cent at Rs 237.55. DishTV is awaiting court approval to list on the exchanges.