Auto scrips lead the charge

STOCK REPORT

Key indices ended up for the third straight session on Monday, backed by value buying and firm European markets, dealers said. Auto shares led index gainers all through the session.

Among key European markets, CAC 40 index, FTSE 100 index, and DAXX were trading up 1-1.5 per cent.The Bombay Stock Exchange's 30-share Sensex ended up 1.1 per cent or 113.33 points at 9997.84 after touching low of 9755.21. The National Stock Exchange's Nifty ended up 0.9 per cent or 26.55 points at 2916.90 after touching a low of 2846.50.

"Some buying is slowly coming into the market. The movement was less sector-driven and more dependent on specific shares," a dealer at a mutual fund said.

The combined (BSE and NSE) turnover of Rs 8,439 crore was low compared with five-day average of Rs 9,740 crore last week, dealers said.

Tata Motors was the biggest Nifty gainer, up 6 per cent, after the company announced the launch of another range of sports utility vehicles.

The rise was also supported by hopes of product price hike by four-wheeler companies. Maruti Udyog ended up 4 per cent. Among sector indices, BSE Auto index ended up 2.5 per cent.Other major gainers included Cipla, Tata Tea and Mahanagar Telephone Nigam, up 5 per cent each.

Dealers attributed the rise in MTNL shares partly to hopes the company will use its real estate for commercial purposes. A company official said the company may re-invite bids for carrying its national long distance calls.

Reliance Industries ended up 1.3 per cent as the company announced plan to come out with an initial public offer for the proposed 25,000-acre special economic zone in 2009.