Global cues drive indices

STOCK REPORT

The BSE Sensex posted its highest intraday gain, to end up by as much as 4 per cent, as positive global market cues led to short-covering on the domestic bourses.

The sentiment was also upbeat following CLSA's statement that India is one of its top markets. India is relatively better placed to withstand a slowdown in the US economy and there is no immediate pressure on participatory note holders to liquidate their positions, the brokerage added.

Bombay Stock Exchange's 30-share Sensex ended at 19,929.06, up 893.58 points or 4.7 per cent from Tuesday, after surging 5 per cent in the last few minutes of trade. Intraday, it touched a low of 19,336.96 and a high of 19,987.71.

National Stock Exchange's 50-share Nifty closed at 5937.90, up 242.50 points or 4.3 per cent. Intraday, it moved between 5700.05 and 5950.20.

The shares of banks and oil and gas companies led gains, with State Bank of India rising 3 per cent to Rs 2,354 on hopes that its rights issue will be attractively priced. ICICI Bank ended 9 per cent up at Rs 1,279, while HDFC Bank closed at Rs 1,752, up 11 per cent.

BSE Oil & Gas index surged 7 per cent, led by gains in Reliance Industries, up 7 per cent at Rs 2,888, and Oil and Natural Gas, up 5 per cent at Rs 1,236.

The combined turnover on BSE and NSE was Rs 293.13 billion, up from Rs 275.71 billion on Tuesday.

CNX Midcap Index and S&P CNX 500 Index ended up by 3 per cent and 4 per cent respectively.

National Aluminium was the top Nifty gainer, rising 14 per cent to Rs 421, as aluminium and alumina prices are expected to stabilise, analysts said.

"Alumina prices are likely to strengthen from the current levels, driven by rising bauxite costs," CLSA said in a report to its clients.

Hindalco was up 7 per cent at Rs 218. The company on Wednesday raised prices of its aluminium products by Rs 2,000 a tonne.

Sterlite Industries rose 4 per cent to Rs 1,012 as the prices of copper rebounded on the London Metal Exchange.

Information technology shares gained, despite the rising rupee as investors bought the recently battered shares at lower levels.