ONGC power on show

STOCKS REPORT

Shares in public sector undertakings (PSUs) and oil-and-gas companies piggybacked on the huge response to the public offering of Oil and Natural Gas Corporation (ONGC).

The much-hyped and awaited "" though with caution "" public issue got fully subscribed within 11 minutes of opening.

That set the mood for the rest of the market, especially the PSU counters. The Bombay Stock Exchange's PSU index gained 3.95 per cent to close at 3,907.12.

The benchmark Sensex gained a solid 1.11 per cent (64.48 points) to close at 5,880.35. With this the Sensex has risen by 3.8 percent during this week. The National Stock Exchange's S&P CNX Nifty, a 50-stock index, gained 23.85 points to close at 1,867.70.

The breadth of the market was slightly negative with losers outnumbering gainers by 871:822.

Shares in ONGC surged by 5.55 per cent to Rs 802.25 in the secondary market, and those in GAIL, whose public offer closed today, gained 3.3 percent to Rs 214.70. Dredging Corporation of India, another PSU, shares rocketed by 19.91 per cent to Rs 588.70.

Shares in other recent PSU public offerings which gained were: CMC (up 5.22 per cent at Rs 582.85), IPCL (up 4.40 per cent at Rs 205.30) and IBP (up 2.58 per cent at Rs 663.10).

In oil-and-gas counters, HPCL was up 5.87 per cent to Rs 498.80, Indian Oil Corporation was up 4.59 per cent at Rs 496.65 and BHEL was up 2.76 per cent at Rs 608.850.

The market started off on a cautious note in early trades but picked up as the strong subscription figures for the public offer started coming in. Strong buying in old economy counters lifted the market.

Players indicate that the market sentiment has definitely turned positive after being cautious in the last few days over concerns that the mega ONGC offer may drain liquidity from the secondary market. The massive response to the ONGC offer on the first day itself has dissipated most concerns.

Index heavyweights, too, were on the rise. Shares in Reliance Industries were up 2.05 per cent at Rs 586.30 and those in State Bank of India were up 1.81 per cent at Rs 616.40.