Markets rise on global cues

STOCK REPORT

Key indices ended up 1.4 per cent today on short covering and as investors picked up bank shares.

State Bank of India ended up 5.5 per cent at Rs 1,203 after the Cabinet approved transfer of Reserve Bank of India's 59.7 per cent stake in the bank to the government.

The transfer was expected to take place by June and the valuation would be based on market prices, reports said.

Sentiment for the market was also bolstered on firm Asian and US markets after US Federal Reserve on Wednesday kept interest rates unchanged at 5.25 per cent and said economic growth was firm.

US is the biggest export market for Asian countries, including India.

The Sensex ended at 14,267.18, up 176.26 points or 1.3 per cent from Wednesday. The Nifty ended at 4,140.80, up 58.10 points or 1.4 per cent.

Turnover on both the exchanges was roughly Rs 11,900 crore, as against Rs 15,600 crore on Wednesday.

Dealers said trade volumes were low, as banks in Maharashtra were closed due to elections.

CNX Midcap Index was up 1 per cent and CNX 500 Index ended up 1.2 per cent.

On the BSE, advances evened declines.

Shares of metal companies surged on value buying and firm prices on the London Metal Exchange.

National Aluminium, up 7 per cent at Rs 246, was the top Nifty gainer.

Punjab National Bank was up 4 per cent at Rs 528 after the bank approved 40 per cent interim dividend on Wednesday.

The bank's board also approved a proposal to reduce the government's stake to 51 per cent from 57.8 per cent.

HMT was up 12 per cent at Rs 87 on news the Union Cabinet has approved a Rs 720 crore restructuring plan for its arm, HMT Machine Tools.

HMT will be run as a joint venture company, with the government retaining the majority stake.

Oil retailers were down, as crude oil prices rose above $58 a barrel on the NYMEX on lower US heating oil inventories. Hindustan Petroleum, down 3 per cent at Rs 303, was the worst hit on the Nifty.