Foreign funds' buying binge continues

STOCKS REPORT

Encouraged by a smooth rollover of derivatives contracts in the previous session, foreign-funds bought stocks across the board for a second straight session on Friday on expectations of strong fourth quarter results. Gainers outnumbered losers nearly two to one in brisk trades.

Banking and technology stocks continued to dominate trading. Power, automobile, cement and metals stocks too displayed strength on bargain hunting after recent weakness.

The 30-share BSE Sensex, which swung around 104 points during the day, surged 114.50 points or 2.11 per cent to above the 5,500-mark to end at 5,528.95. During the day, the Sensex hit a low of 5,448.29 and a high of 5,552.34 in the intra-day trades.

On the National Stock Exchange (NSE), the S&P CNX Nifty Index too rallied 43.05 points, or 2.53 per cent, to end at 1,747.50.

"The day after the rollover of derivatives contracts has traditionally been good. Investors have also shaken off fiscal year-end uncertainties," said a dealer with a local brokerage house.

He also added, "Thank God. March is over," investors can now look forward to fourth quarter results and fresh flows from domestic funds."

ICICI Bank, the largest private-sector bank, rallied 5.56 per cent to close at Rs 284.65 on institutional buying interest, after the company announced a price band at Rs 255 to Rs 295 per share. HDFC Bank rallied 3.14 per cent to Rs 374.95 on fresh buying interest.

State Bank of India, the largest commercial bank, added 4.72 per cent to Rs 593.10 on bargain hunting on the counter, after recent weakness. Reflecting these sentiments, the BSE Bankex surged 136.68 points, or 4.95 per cent, today to end at 2,899.07.

Technology stocks rose on gains on the Nasdaq, despite the Indian rupee's continuing strength. The rupee, which ended at a 46-month closing high of 44.47/48 per dollar, has appreciated by 1.5 per cent this week on a surge in foreign flows.

Bellwether Infosys Technologies rallied 2.59 per cent to close at Rs 5,300, after a foreign brokerage upgraded the stock target. Satyam Computer rose 4.65 per cent to Rs 320.65 and Wipro jumped 3.55 per cent to Rs 1,427.90. Media major, Zee Telefilms jumped 4.37 per cent to Rs 125.50 on fresh buying interest.

Elsewhere, Petronet LNG, made a lukewarm debut at Rs 16 today, and ended at Rs 14.65, down 2.33 per cent to its offer price. The stock has moved in an intra-day range of Rs 17.10-14.55.

Meanwhile, auto stocks edged up on hopes of robust March sales numbers and strong demand in India's booming economy. Tata Motors rose 2.92 per cent to Rs 466.35. Bajaj Auto added 1.25 per cent to Rs 871.40 and Hero Honda Motor surged 1.24 per cent to Rs 469.95 on value buying.

India heavyweights Reliance Industries jumped 2.01 per cent to Rs 525.45. FMCG giant, Hindustan Lever vaulted 1.82 per cent to Rs 148.10.

Tata Power rose 2.78 per cent to Rs 369.55 on reports that the company plans to enter power distribution business in Gujarat.

But Hindalco fell 0.42 per cent to Rs 1,216.10 on selling pressure in an otherwise bullish trade. GAIL India too tumbled 0.53 per cent to Rs 206.75 on concerns of fresh supply of shares allotted in the recent public offer.