IT, banks pull Sensex up 236 points

The Bombay Stock Exchange's (BSE's) benchmark Sensex today closed 236 points higher, or 1.76 per cent, at 13,708, as buying activity in software, banking, automobile and fast-moving consumer goods stocks gained momentum.

The mood was also positive in the broader market with gainers outpacing losers almost two to one on a traded volume of 178.8 million shares. The 50-issue National Stock Exchange (NSE) ended 1.79 per cent up at 3,940.50.

"One of the reasons for today's move is buying in anticipation of good third-quarter corporate results. Some foreign institutional investor buying also supported the Sensex," said Ketan Dedhia, director, Nalanda Securities.

ITC Ltd, which announced an alliance with Japanese Marubeni Corporation for its agri-food business, gained 2.89 per cent to Rs 174.55.

Some analysts, however, sounded a note of caution. "The movement is more because of the expiration period that the market is witnessing now. There is clearly a lack of participation in the market and investors should not draw any conclusion based on this movement. We do not expect much gain in the last three days of the year," Arun Kejriwal of Cris Research said.

Wipro Ltd was the top gainer with an increase of 4.24 per cent to Rs 597.35, followed by Tata Consultancy Services, which gained 3.38 per cent to Rs 1,190.25. Other gainers included Cipla (up 3.23 per cent to Rs 255.90), Satyam Computer Services Ltd (up 3.10 per cent to Rs 476.55) and Tata Motors (up 3.10 per cent to Rs 476.55).

Tata Steel was the top loser with a loss of 0.28 per cent to Rs 477. Dr Reddy's Laboratories lost 0.25 per cent to Rs 802.15, while Reliance Energy Ltd slipped 0.23 per cent to Rs 467.25 and Hero Hondo fell 0.07 per cent to Rs 739.15.

All sectoral indices ended in positive territory. The BSE Bankex was up 1.8 per cent to 6,951.69 points and the automobile index was up 1.65 per cent to 5,433.92 points.

ONGC, which declared a dividend of Rs 18 per share gained along with State Bank of India, HDFC Bank and NTPC.