IT, pharma stocks take Sensex past 5,400

Last-minute gains in private sector banks, pharmaceuticals and technology stocks pulled the Bombay Stock Exchange (BSE) Sensex up to a new 44-month high of 5,437.05 at close yesterday.

Market sources said Standard & Poor's upgrade of India's foreign currency outlook sparked expectations that India could soon be shifted to investment grade.

As a result, exporters in the information technology and pharmaceutical sectors gained substantially in the last 30 minutes of trading. Private bank stocks spiked towards the end after the government said it had decided in principle to raise the foreign investment ceiling for banks.

The Sensex has risen 2,058.97 points, or nearly 61 per cent, since the beginning of the year, making it one of the best performing indices in the world.

Vijay Saraf, chief operating officer, Centrum Securities, said: "The markets were choppy as selling pressure was seen at higher levels because of profit taking. But value buying at lower levels led to gains, helping the market to close positive."

Select Sensex stocks, too, witnessed hectic action. Tobacco major ITC bounced back from an intra-day low to close 3.76 per cent higher at Rs 957.30. FMCG major Hindustan Lever rose from a low of Rs 193 to the day's high of Rs 200.70 before closing 3.37 per cent up at Rs 199.60.

The Reliance Industries scrip gained 1.11 per cent at Rs 504.65, off the day's day low of Rs 493. But ONGC lost 1.55 per cent to Rs 675.35 on falling international crude prices. Tata Steel shed 1.37 per cent to Rs 386.45 on selling pressure after recent gains.

The IDBI Bank scrip rose 7.04 per cent to Rs 41.80, while the UTI Bank scrip jumped 5.74 per cent to Rs 121.65. Jammu & Kashmir Bank added 4.72 per cent to Rs 298.30 and Global Trust Bank gained 3.51 per cent at Rs 28.00

Despite the 46-point gain, market breadth remained negative with gainers behind losers 580:904, while 25 stocks ended unchanged. The turnover on the BSE rose to Rs 2,466.38 crore from Rs 2,155.50 crore yesterday.

Meanwhile, foreign funds purchased a net $631 million of local shares in December, bringing their total net investment in 2003 to a record $5.9 billion.