Sanguinity surge

STOCKS REPORT

The Bombay Stock Exchange (BSE) Sensex hit an intra-day high of 5421.52 on Monday before closing at 5397.46, up 0.51 per cent (27.41 points) from Friday's close, a new four-month high.

The BSE Healthcare Index was the biggest gainer, rising 2.40 per cent, followed by the IT Index, up 1.28 per cent and the TECk Index, which was up 0.88 per cent.

Despite the wholesale price inflation rate rising to a new three-and-a-half-year high of 8.33 per cent in the year to August 28, the market has remained positive.

Brokers said the mood of the investors was positive and many were of the opinion that the inflation rate had peaked and looked ahead to strong corporate earnings for the July-September quarter.

Easing international oil prices also contributed to the market gains, they added.

The BSE Bankex Index was the biggest loser on Monday, down 1.32 per cent, followed by the Capital Goods Index, down 0.58 per cent.

Blue chips witnessed buying but gains were capped, with 16 out of the 30 Sensex stocks closing higher. The broader markets were also positive, with gainers outpacing losers in the 10:9 ratio on the BSE.

Dr Reddy's Laboratories was the biggest gainer in the Sensex basket, up 4.62 per cent to Rs 756.85, followed by Ranbaxy Laboratories, up 4.36 per cent to Rs 1,069.85, Hindustan Petroleum Corporation Ltd gained 3.17 per cent to Rs 321.80, Satyam Computer up 2.46 per cent to Rs 378.35 and HDFC up 1.95 per cent to Rs 623.25.

Zee Telefilms was the biggest loser among Sensex stocks, down 3.95 per cent to Rs 143.55, followed by Maruti Udyog, down 3.55 per cent to Rs 378.65, State Bank of India down 2.22 per cent to Rs 456.35, Gujarat Ambuja Cements fell 1.53 per cent to Rs 336.95 and ICICI Bank down 1.52 per cent to Rs 264.85.

Brokers said the mood was positive on Monday despite the rise in the inflation rate. Vijay Saraf, chief operating officer, Centrum Securities, said, "Rising inflation has been largely on account of high crude oil prices last month, which have come off their highs now."

He added that investors seem to have now accepted higher inflation figures on account of the higher oil prices and are more focused on corporate performances.