A Reliance-led recovery

STOCKS REPORT

The market bounced back in the last one hour of trading on smart gains in Reliance Industries stock coupled with renewed buying in oil and bank sector stocks.

After languishing in red for most of the day, the Bombay Stock Exchange Sensex rose 0.56 per cent or 35.18 points to close at 6,268.72 after hitting an intra-day low of 6220. The Nifty ended 0.83 per cent higher at 1,985.35 points.

A leading NSE broker said, "The markets recovered in the later half of the trading fairly on the recovery in the Reliance Industries stock."

Cheaper global crude oil prices boosted refiners and energy firms. BPCL stock was up 1 per cent to Rs 423.90, while GAIL India jumped 4.5 per cent to Rs 238.75.

ONGC stock was up 2.04 per cent to Rs 836.65, while HPCL stock ended 0.63 per cent to Rs 373.75 also attracted buying interest on easing international oil prices.

Reliance Industries stock ended 0.54 per cent higher at Rs 502.10, after hitting an intra-day low of Rs 486.60, with more than 43 lakh shares changing hands on the BSE alone. Reliance Energy stock too bounced back from an intra-day low of Rs 489 to Rs 513.90 before settling at Rs 510.20, up 0.86 per cent.

Reliance Group blue chips led an early fall in the market on Monday as the ongoing controversy over ownership showed no signs of resolution, said a dealer.

Ranbaxy Labs was up 1.47 per cent to Rs 1,215.10, HDFC was up 2.34 per cent to Rs 779.80, Tata Steel was up 1.59 per cent to Rs 323.30, Grasim was up 1.46 per cent to Rs 1,209.20, HDFC Bank was up 1.59 per cent to Rs 473.40.

Cement and auto makers rose in anticipation of firmer prices. Grasim Industries stock was up 1.5 per cent to Rs 1,209.20 while Hero Honda stock ended 2.3 per cent higher to close at Rs 491.85.

Brokers said, " While the overall trend in the market is positive, there could be some intermediate corrections with FIIs flow slowing down by the end of the year."

Although foreign inflows continue to be positive, there was a significant slowdown in net investment last week. FIIs put in Rs 151.90 crore on 9 December after putting in Rs 147.40 crore on 8 December, Rs 305.20 crore on 7 December, Rs 299.70 crore on 6 December and Rs 473.40 crore on 3 December.

They put in a huge Rs 3,174.80 crore in the previous week ended 3 December.