Gaining streak continues

STOCKS REPORT

The equity markets held on to the gains recorded in the previous day, with corporate results set to be announced from next week onwards.

The benchmark Bombay Stock Exchange (BSE) Sensex ended up 3.19 points to close at 5,776.85 on Friday. The index has gone up around 1.8 per cent over the previous week.

The index opened at 5,782.63 and hit a high of 5,803.82 during the day, while it went to a low of 5,755.42 during intra-day trades. The broader NSE Nifty index 50-share closed 4.50 points higher at 1,820.20 points.

Gainers beat losers by 1081 to 850 with a volume of 17.4 crore shares on the BSE, up from 16.7 crore shares on Thursday.

Dealers said the index would face resistance at the 5,800-levels because of the rising crude oil prices and its impact on the economy.

Crude prices have peaked to $53 a barrel on Thursday, though on Friday it went down to $52 a barrel.

However, analysts and market watchers said oil prices have already been factored in.

The market is also getting a boost from the positive indication sent out by the Prime minister and finance minister on tax reforms and foreign direct investment sops.

The ongoing initial public offering of National Thermal Power Corporation, which has drawn good initial response, has put renewed life into the market.

However, the main driver for the market is corporate earnings, which are expected to be good.

Next week the top software companies such as Tata Consultancy Services (TCS), Infosys Technologies and Wipro will be releasing their second quarter results.

IT sector stocks have been doing well since they are insulated from oil price hikes while a weakening rupee also works in their favour.

The stock price of TCS ended up 0.1 per cent, while Infosys rose 0.2 per cent to Rs 1,707.80 and Wipro closed one per cent higher at Rs 638.35.

Reports that Reliance Infocomm might go public boosted the stock price of Reliance Industries, though at the end of the day it closed at Rs 554.45, down by 0.7 per cent.

There have also been rumours of Reliance's reducing the face value of its share.

The share price of ONGC ended at Rs 801.25, down by 0.5 per cent, though it has gained three per cent during the week.

ONGC and Reliance together have a weightage of around 31 per cent in the Sensex.