Pivotals pilot thin rally

STOCKS REPORT

The BSE 30-scrip Sensex rose to an intra-day high of 6423.37 before closing at a record high at 6402.29, up by 76.76 points, on Wednesday. The broader Nifty index also closed at a record high of 2028.70, up by 21.90 points.

The rally was, however, largely confined to the index stocks and the broader market saw a very little movement. This can be gauged from the fact the losers outpaced gainers at 1,098 to 960.

Dealers said that the delivery volumes had actually gone down in the last few days and it looked as if the market was set for a correction. The rally was led by buying by foreign and domestic funds, though it was selective buying.

Tech and auto stocks were the main drivers in the rally with pharma stocks playing a supporting role.

Dealers said that though the long-term trend looked bullish, it would be wise for investors to exercise caution at the current levels.

Domestic funds were active buyers with selective buying in pharma and other front-line index heavyweights.

So far FIIs have put in $7.988 billion into the Indian equities markets during 2004. This month alone, FIIs have brought in $942 million. During November the FIIs had invested a net $1.4 billion in Indian stocks.

Among the tech stocks the gainers were Tata Consultancy Services (up 1.2 per cent), Infosys (up 2.3 per cent) and Wipro (up 1.3 per cent). In the auto segment Maruti Udyog (up 4 per cent), Hero Honda (up 1.9 per cent) and Bajaj Auto (up 3.5 per cent) were the major gainers.

Software stocks rose due to strong earnings expectations. Dealers said that the rumours of a rise in the price of cars have led to the appreciation in auto stocks.

"Inflows from foreign funds have been driving the market for the last few months," dealers opined.

"There are clear signs that they are still buying. This has boosted market sentiment," the traders said.

But even as the broad market rose on Wednesday, Reliance group shares fell, with no end in sight of the spat between the Ambani brothers. Reliance Industries fell two per cent, while Reliance Energy dipped 0.25 per cent. The two stocks account for 11.5 per cent in the Sensex.

Zee Telefilms, which topped the blue chip gainers chart, surged 11 per cent on hopes that the Supreme Court will rule in its favour in the TV rights case.