Reliance, auto shares lift indices

STOCK REPORT

Indian equities vaulted 2 per cent, and clocked the highest gains among major Asian markets, led mainly by gains in Reliance Industries, telecom and auto shares. Clarification on the re-listing of Reliance group shares, boosted buying interest in the stock, dealers said.

Tata Chemicals, up 5.2 per cent, was the major Nifty gainer. Housing Development Finance Corporation and Oil and Natural Gas were the only Nifty laggards, and ended marginally down. HDFC Bank ended flat. The BSE Sensex rose 197.27 points or 2.2 per cent to close at 9283.16. The Nifty closed at 2805.90, up 56.30 points, or 2 per cent.

On the BSE, market breadth was positive with advances to declines at 1,716:744. 89 per cent frontline stocks ended up. Total traded turnover on both exchanges was around Rs 8,300 crore.

"The volumes were relatively low, it did not complement the 2 per cent rise. It was more of a relief rally following the 180-point fall (in Sensex) over the last two sessions. The Sensex could slip again to the 9100 levels, it should not cross 9450 level," said Leena Ashar, associate manager, Rolta Shares.

"It seems like an upward correction from the fall over the past two sessions. Unless the Nifty crosses 2825 level, we cannot really say if this is an upward trend or just a relief rally, the market might slip again," said a technical analyst.

Reliance Industries, Reliance Energy and Reliance Capital shares spurted 4-5 per cent. "There was a lack of clarity on the re-listing of shares post the demerger. Also, there was confusion with regard to the January 17 deadline for investors to square off their positions in Reliance's January and February futures contract. Since it has been clarified that the stock will be cum-right till January 17 and ex-right since January 18, investors were reassured," said Shiv Kumar Gupta, chief dealer at JetAge Securities.

Also there was good deal of short-covering in the Reliance Industries counter. The open interest was 8.91 million, down 19.4 per cent from Monday at provisional close.

Videsh Sanchar Nigam, Mahindra & Mahindra, Mahanagar Telephone Nigam, Tata Chemicals, Satyam Computer Services, GAIL India, Tata Motors, Bharti Tele-Ventures, Bharat Heavy Electricals and ICICI Bank ended 3-5 per cent higher.

The CNX Midcap Index ended up 2 per cent at 3,957.85. Matrix Laboratories, up 7 per cent, was the top index gainer. Rashtriya Chemical and Fertilisers, down 2 per cent, was the biggest loser in the index.

Among second line indices, CNX Bank Index rose 2.7 per cent, while CNX IT Index rose 1.9 per cent to end at 4451.95 and 3876.15, respectively.