Global rebound handy

STOCKS REPORT

Recovery in global equities and short covering on the last day of the expiry of the June series in the futures and options segment helped the markets re-gain some of its recent losses.

The Bombay Stock Exchange (BSE) Sensex gained 64.55 points or 1.3 per cent to close at 4,708.55. The NSE S&P CNX Nifty gained 24.65 points, or 1.70 per cent to end at 1,470.75.

The Indian markets took a clue from firm trend in other Asian markets with Hong Kong and Japan posting strong gains. Japanese shares closed at their highest in eight weeks on Thursday following positive economic reports and data. European markets also held firm.

On the BSE, recently battered frontline stocks were in the limelight on value buying at lower levels. A senior market analysts said, "The markets seem to have seen a temporary bottom at least till the budget. However, Thursday's gains were on short-covering and some bargain hunting in the second half of trading on Thursday."

Reliance Industries stock gained nearly three per cent to Rs 422.80 after it announced the discovery of four to five trillion cubic feet of gas off Orissa coast and the acquisition of a German polyester firm for about 80 million euros.

State Bank of India scrip gained 3.4 per cent to Rs 422.60 while ONGC stock ended 3.2 per cent higher to Rs 635.80 on reports that the Indian government had approved its $200 million project to set up a petroleum product pipeline in Sudan.

C Jayaram, director, Kotak Securities, said, "The markets are expected to remain rangebound on thin volumes till the budget, which will be the first clear statement by the new government of the various policy issues."

While June futures (1,470.50) expired around spot Nifty, the Nifty July futures (1,451.50) ended at a substantial discount of around 19 points to the spot Nifty.

Recently hammered bank and auto stocks witnessed some bargain hunting at lower levels.

HDFC Bank stock gained 4.6 per cent to Rs 382.20. Other PSU banks such as Punjab National Bank up 4.21 per cent to Rs 260.05, Oriental Bank of Commerce up 3 per cent to Rs 230.40, Indian Overseas Bank up 2.83 per cent to Rs 39.95 and Canara Bank up 1.75 per cent to Rs 119.20 were the big gainers.