Peak performance

STOCKS REPORT

The market finished 2005 on a high with the benchmark Bombay Stock Exchange (BSE) Sensex closing above the 6,600 level.

The Sensex surged to its highest ever close on the last trading day of the year on expectations of strong earnings growth and robust foreign fund flows into India continuing next year, brokers said.

Fund managers said that fresh allocations from foreign funds starting January and expectations of good quarterly numbers from companies next month led to gains.

Besides, after a strong bull run for the most part of 2004 and sustained foreign fund inflows, players are expecting an encore next year too.

But there seems to be some caution at these historic highs, brokers said. The huge casualty and losses caused by the tsunami has not dampened spirit on the bourses and the undertone of the market appeared optimistic, they added.

Banking, technology and consumer durables companies were among the biggest gainers while metal scrips recorded some losses on Friday. The breadth of the market was positive with gainers outpacing losers 12:5. In the Sensex basket, 24 out of the 30-scrips closed higher.

Foreign funds were net buyers of Indian shares worth Rs 133.60 crore on Thursday and have bought shares net worth Rs 5,806.70 crore in December so far, data released by the Securities and Exchange Board of India show.

The BSE Sensex hit a high of 6,609.78 and a low of 6,541.38 in intra-day trades before closing at 6,602.69, up 80.15 points (1.23 per cent) from Thursday's close. Volumes were lower than on Thursday in the cash segment of the bourses; the BSE reported a turnover of Rs 2,081.26 crore and the NSE reported a turnover of Rs 4,733.79 crore.

BHEL was the biggest gainer in the Sensex basket, rising 3.07 per cent to close at Rs 769.90, followed by the State Bank of India, up 3.02 per cent to Rs 652.45, Tata Power gained 2.79 per cent to Rs 390.55, Bharti Tele-Ventures gained 2.04 per cent to Rs 215.60 and Reliance Industries was up 2.01 per cent to Rs 533.80.

Hindalco was the biggest loser in the Sensex basket, falling 1.33 per cent to close at Rs 1,426.80, followed by HDFC Bank, down 0.47 per cent to Rs 518.85, HLL was down 0.45 per cent to Rs 143.50, L&T fell 0.26 per cent to Rs 982, HPCL was down 0.07 per cent to Rs 400.50 and Reliance Energy fell 0.01 per cent to Rs 524.40.

FIIs have been net purchasers of Indian shares worth Rs 38,306.40 crore in 2004 so far. Domestic mutual funds were net buyers worth Rs 23.10 crore on Thursday but have been sellers in December to the tune of Rs 365.20 crore and Rs 878 crore in 2004 so far.

Grasim Industries gained 1.94 per cent to close at Rs 1,322.35, Infosys Technologies gained 1.94 per cent to Rs 2,089, Cipla was up 1.93 per cent to Rs 317.25, ICICI Bank was up 1.92 per cent to Rs 370.75, Dr Reddy's Labs gained 1.87 per cent to Rs 865.30, Tata Motors was up 1.64 per cent to Rs 505.15, Ranbaxy Labs gained 1.59 per cent to Rs 1,251.40 and Gujrat Ambuja Cements was up 1.54 per cent to Rs 401.55.