The Reliance push

STOCKS REPORT

Sharp rally in Reliance group stocks pushed the markets to a new all time high. After managing to pierce the magical 7000 mark in intra-day trades, the Sensex closed 78 points higher to a new closing high of 6984.55. The Nifty ended 20.95 points higher to close at 2144.35.

However, the overall breadth of the market was negative with mid caps stocks losing for the third consecutive day.

Brokers said, thanks to a sharp rally in Reliance group stocks, the Sensex managed to close at its new all time high. However, rising crude oil prices and other global factors may dither the immediate run up in stock prices from its current levels.

Mihir Vora, vice-president, head-equity, ABN Amro MF, said, "Markets may witness volatile trade in the short term because of global factors. However, from the medium to long term perspective, the markets look positive.

Valuations are still not at all time peak and fundamentally there are sectors, stocks which will outperform the markets. The mid-cap segment is going through a consolidation phase and there is no need to press the panic button."

The breadth of the market was negative with 633 stocks advancing against 1,869 stocks declining. The volumes were moderate and accounted for Rs 3,225.56 crore on BSE and Rs 6,724.59 crore on the National Stock Exchange (NSE). Among the 30 share BSE basket stocks, 15 stocks ended positive while 15 lost.

Among the other Sensex gainers, Hindalco was up by 4.33 per cent to close at Rs 1,185.65, Infosys was up 3.79 per cent to Rs 2,375.50, Satyam was up 3.49 per cent up at Rs 503.50. Profit booking was witnessed in stocks such as ICICI Bank which lost 2.67 per cent at Rs 405.10, Tata Power lost 2.01 per cent to Rs 366.30, SBI was down 1.62 per cent to Rs 656.55 and Tata Motors was down 1.51 per cent to Rs 414.15.

Among the indices, the Consumer Durables index was down by 2.34 per cent losing 46.54 points, Bankex was down 1.64 per cent losing 64.82 points, while the BSE Small-Cap index slipped 1.29 per cent losing 56.62 points. However, investors bought oil & gas and technology sectors stocks in today's trading.

Among the personal care segment, the big losers were JL Morison, down 3.2 per cent to Rs 215.55, Dabur India was down 2.39 per cent to Rs 126.50, Gillette India was down 1.75 per cent to Rs 692.85, Colgate was down 1.64 per cent to Rs 227 and Godrej Industries was down 1.3 per cent 205.20.

Foreign institutional investors were net buyers of Indian shares worth Rs 230 crore on Friday while domestic mutual funds were net sellers to the tune of Rs 167 crore.

Mid-cap stocks have been witnessing selling pressure with the BSE Mid Cap index losing another 0.42 per cent in today's trading.

The liquidity is shifting from mid-cap to large-cap and the markets may witness an intermediate correction at these levels, said a broker.

Ramesh Damani, a BSE broker, said, "Today's all-time high is a good psychological boost for the market. The Sensex may be sustained at higher levels as liquidity is shifting from mid-cap to large-cap stocks. As far as Reliance group stocks is concerned, today's gains were on back of emotional outpour by investors."

Reliance Capital surged 30 per cent today to close at Rs 294.20 from its Friday close of Rs 235.75. Reliance Energy gained 11.3 per cent on the bourses to close at Rs 658.25 from its Friday close of Rs 591.25.

Reliance Industries, Reliance Energy and Reliance Capital hit new 52-week highs today while IPCL and Reliance Infrastructure made major gains. RIL was up 4.92 per cent to close at Rs 630.40 and IPCL rose 3.94 per cent to close at Rs 167.60. Reliance Industrial Infrastructure rose 5.20 per cent to close at Rs 145.60.

Refinery stocks ended higher after the government announced the hike in fuel prices. Among the gainers, BPCL was up 1.11 per cent to Rs 371.95, Chennai Petro was up 0.65 per cent to Rs 191.80, ONGC was up 0.41 per cent to Rs 921.90, Bongaigaon Refinery was up 0.37 per cent to Rs 95.35, while IBP ended 0.03 per cent lower at Rs 500.30.