CNX Nifty hits another high

STOCK REPORT

The S&P CNX Nifty index hit another all-time high on Thursday at 4,295.80, up 46 points or 1.09 per cent from previous close, buoyed by rising global markets following the US Fed's statement on stable interest rates for next six months.

The release of domestic economic growth figure at 9.4 per cent, the highest growth since 1987, also acted as a sentiment booster, say analysts.

The last time Nifty hit an all-time high was on May 21 when the index touched 4260 points. Since then it has been a roller coaster ride for the 50-stock index. The Bombay Stock Exchange's Sensex added 133.08 points or 0.92 per cent to end the day at 14,544.

Hero Honda, which rose by 5.01 per cent to Rs 732.35, was the sharpest gainer on the 30-share Sensex, followed by HDFC Bank (up 3.18 per cent to Rs 1,139.75), Maruti Udyog (up 2.63 per cent to Rs 824), Hindustan Lever (up 2.42 per cent to Rs 203.50) and HDFC (up 2.29 per cent to Rs 1,870.80).

Madhusudan Sarda, director-research at Mehta Equities, said, "The immediate trigger for markets on Thursday was the announcement by Federal Reserve chief that US interest rates are going to remain unchanged for another six months. The China effect will no more be a dampener. Short-term future outlook for markets is extremely positive."

IT stocks were up on Thursday after witnessing a period of recession triggered by the rupee's drop. IT biggies Infosys (up 0.84 per cent to Rs 1,920.25), Satyam (up 0.95 per cent to Rs 469.60) and Wipro (up 1.59 per cent to Rs 544.55) ended in the green. The rupee's continuous appreciation had caused IT stocks to lose badly.

Among sectors, the BSE's Consumer Durables index was the biggest gainer, climbing by 4.47 per cent. Almost all the sectoral indices auto (1.30 per cent), banking (1.36), FMCG (1.39), metals (0.59), PSU (0.21 per cent), Oil & Gas (0.52 per cent) closed the day in positive.

Idea Cellular climbed 2.4 per cent on the news that it is going to acquire Spice Telecom. Deccan Aviation gained 6.6 per cent on the news of its acquisition by Kingfisher Airlines. Reliance Industries, nation's most valuable company rose 0.41 per cent to Rs 1760.

The biggest private sector bank, HDFC gained 3.18 per cent to Rs 1139.75. FIIs bought a net Rs 840 crore worth of Indian shares, as per the Sebi figures.

S Ramesh, COO of Kotak Investment Banking, said, "Prediction of good monsoons and robust quarter four performance by corporates have added on to the global cues acting as drivers of a positive market breadth."