Blue chips surge

STOCKS REPORT

Institutional buying in bluechip scrips helped the Bombay Stock Exchange (BSE) Sensex close firmly above the 5,300 mark, surging 1.36 per cent (71.82 points) to close at 5,370.05.

The market rose despite India's wholesale price inflation rate rising to a new three-and-a-half-year high of 8.33 per cent in the year to August 28. Moving in a range of 96 points with a brief stint in negative territory in early trades, the Sensex hit a high of 5,376.65 points and a low of 5,281.06 points in a lacklustre intra-day trades.

Blue-chips witnessed buying but gains were capped, with 27 out of the 30-scrip Sensex closing higher. The broader markets were also positive, reflecting the mood in the market. Gainers outpaced losers 11:8 on the BSE. Huge block deals took place in select mid-caps.

Brokers said that the mood was positive on Friday despite the latest inflation figures, which showed a further rise and international crude oil prices rising yesterday after easing for over two weeks.

Analysts said that rising inflation has been largely on account of high crude oil prices last month, which have come off their highs now. They added that investors seemed to have remained optimistic about corporate earnings, shrugging off worries of higher inflation.

The BSE FMCG index was the biggest gainer, rising 2.01 per cent, followed by the Healthcare index, up 1.88 per cent and TECk index gained 1.56 per cent. The BSE Consumer Durables index was the only loser on Friday, down 0.23 per cent.

Cipla was the biggest gainer in the Sensex basket, up 4.72 per cent to Rs 260.65, followed by Bharti Tele-Ventures, up 4.63 per cent to Rs 138.90, HDFC gained 3.55 per cent to Rs 611.30, Ranbaxy Labs rose 2.65 per cent to Rs 1,025.20 and Tata Steel gained 2.65 per cent to Rs 263.60.

Heavyweights ITC gained 2.26 per cent to close at Rs 1,104.45, HLL was up 1.98 per cent to Rs 121, the State Bank of India scrip was up 0.85 per cent to Rs 466.70 and Reliance Industries gained 0.35 per cent to Rs 487.55.