Good corporate show keeps up the sentiment

STOCKS REPORT

The market is in a positive mood, feeding off healthy quarterly results and optimistic that the monsoons will improve. This sentiment was reflected on the bourses with the Bombay Stock Exchange (BSE) Sensex hitting a high of 5,200.85 and a low of 5,134.92 in intra-day trades before finally closing at 5,170.32 points, up 0.97 per cent (49.87 points).

Blue chips were in the limelight, with 19 of the 30 scrips in the Sensex basket closing higher, gainers outpaced losers 10:8 on the BSE.

Brokers said that short-covering in blue chips helped the market rise higher. Smooth expiry of the July series futures contracts also added to the positive sentiment, they added.

Vijay Saraf, COO, Centrum Finance, said," The markets have moved up largely due to short covering and may remain range bound in the near term."

He added that encouraging quarterly results, expiry of July futures and improved monsoons lifted the Sensex on Friday. Reports that there was widespread rainfall in coastal regions and showers in central and western states, with the IMD expecting improved rainfall in the next two days helped sentiment.

The good response to the TCS IPO has enthused the markets and most market participants are rerating the entire tech sector, increasing their exposure. The BSE TECk index was the biggest gainer on Friday, up 1.06 per cent and the BSE IT sector index gained 1.04 per cent.

Satyam Computer rose 1.57 per cent to Rs 339, tech bellwether Infosys Technologies was up 1.31 per cent to Rs 1,553.75 and Wipro was up 1.02 per cent to Rs 546.75.

Tata Motors was the biggest gainer in the Sensex basket, up 4.38 per cent to Rs 423.20. followed by the Hindalco scrip, up 3.40 per cent to Rs 1,101.15 and Reliance Industries was up 3.07 per cent to Rs 488.90. Hero Honda Motors was up 2.72 per cent to Rs 428.90, Gujarat Ambuja Cements gained 2.66 per cent to Rs 278.15 and Tata Power was up 2.46 per cent to Rs 264.15.

ACC gained 2.35 per cent to Rs 239.60 and Maruti Udyog was up 1.85 per cent to Rs 424.60.

Zee Telefilms was the biggest loser in the Sensex basket, down 2.09 per cent to Rs 140.45, followed by the HLL scrip, down 1.69 per cent to Rs 116.20 and Dr Reddy's Labs was down 1.50 per cent to Rs 759.80.

Heavyweights ITC fell 1.06 per cent to Rs 1,034.60 and the State Bank of India scrip was down 0.83 per cent to Rs 441.95.

Turnover was lower than Thursday's on the bourses, with the BSE reporting a turnover of Rs 2,010.73 crore in the cash segment and the National Stock Exchange (NSE) reported a turnover of Rs 4,700.32 crore.

Foreign institutional investors (FII) were net buyers of Indian shares worth Rs 162.20 crore on Thursday while domestic mutual funds were net sellers to the tune of Rs 94.30 crore.