FIs drive up blue chips

STOCKS REPORT

The Bombay Stock Exchange Index closed at 5,699.24, up 1.02 per cent (57.32 points) over its previous close, a 46-month closing high.

The NSE S&P CNX Nifty closed at 1,837.05 points, up 28.35 points.

According to market sources, the strong rally was on the back of strong fund and institutional participation.

The market displayed strength and traded in the positive territory for the entire session, the Sensex touched a low of 5,650.74 and a high of 5,705.30 in intra-day trades.

The Sensex has rallied almost 18 per cent in five straight weeks and is now up about 69 per cent in 2003 "" making it Asia's second-best performer.

Market players indicate a fresh round of buying in blue-chip counters, specially old economy heavyweight stocks on expectations of good quarterly results.

Buying was seen almost across the board with old economy sectors such as cement, power and steel seeing hectic buying activity. Pharma stocks were also in the limelight.

Says an analyst from a local brokerage, "Contrary to expectations, foreign institutional investor (FII) inflows continue to remain strong, further fuelling a vibrant equity market."

He adds that the undertone is bullish on the back of a strong domestic economy, stable geo-political conditions and optimism of strong industrial and infrastructural growth.

Investors are expecting foreign fund inflows to gather pace in the New Year as fund managers bet on growth in Asia's third-largest economy.

FIIs remained net buyers with inflows of Rs 223.40 crore on December 24. These have brought in a total of Rs 5,170.70 crore in December so far.

Heavyweights State Bank of India was up 2.80 per cent at Rs 522.45 and Hindustan Lever was up 0.92 per cent at Rs 202.60, contributing to the gains of the Sensex.

Cement pivotal ACC was up 7.48 per cent at Rs 249.35, Gujarat Ambuja Cements was up 5.19 per cent at Rs 310.25 and Grasim was up 4.28 per cent at Rs 1,020.

Power pivotals Tata Power was up 3.47 per cent at Rs 297.80, Reliance Energy was up 2.19 per cent at Rs 494.70 and BHEL was up 1.52 per cent at Rs 489.75.

Pharma heavyweights Ranbaxy Labs was up 2.99 per cent at Rs 1,098.80, Cipla was up 1.61 per cent at Rs 1,286.85 and Dr Reddy's Labs was up 0.59 per cent at Rs 1,423.10.

L&T was up 1.52 per cent at Rs 526.90, MTNL was up 5.78 per cent at Rs 134.45, Tata Steel was up 3.07 per cent at Rs 424.50 and Hero Honda Motors was up by 2.40 per cent at Rs 462.15.

Tech bellwether Infosys Tech was down 0.60 per cent at Rs 5,390.95 and Wipro was down 0.37 per cent at Rs 1,717.

Debutant Indraprastha Gas closed at Rs 119.20. The counter hit a high of Rs 125 in intra-day trades.