Selloff resolve lifts indices

STOCKS REPORT

The 30-share BSE Sensitive Index (Sensex) surged on across the board buying on Thursday as traders cheered government's promise to push ahead with its privatisation programme despite the prospect of early national elections.

Sentiments were also buoyed by the market regulator's move the previous day to allow stock lending and margin trading.

The Sensex rallied 151.52 points or 2.54 per cent to close at 6,108.54, off from day's high of 6,118.62. Meanwhile, the broader NSE S&P CNX Nifty jumped 51.80 points or 2.7 per cent to a historic closing peak of 1,968.55 points.

On Thursday, the government cut the peak customs duty to 20 per cent, from 25 per cent earlier. It also rationalised excise duties on a host of items, including computer hardware, cellphones, aviation turbine fuel, etc.

"It shows that the government is confident of meeting its fiscal deficit target and there has been a jump in tax collections," said Jayesh Shroff, fund manager at BOB Mutual Fund, referring to the wide-ranging duty cuts.

"But it was too late for the market to react," Shroff said.

State-run companies were the main gainers on the market today. ONGC rose 4.65 per cent to close at Rs 944.10 and GAIL surged 2.34 per cent to Rs 279.60, after disinvestment minister Arun Shourie announced that the divestment of these companies will be as per schedule.

Other state-run firms also rallied. HPCL gained 2.32 per cent to Rs 460.70 on fund-based buying. MTNL vaulted 4.71 per cent to Rs 148.90 on sustained buying interest.

Elsewhere, technology stocks were in the limelight ahead of quarterly earnings. Infosys Technologies, which is slated to announce its quarterly earnings on Friday, rose 2.91 per cent to close at Rs 5,838.95.

Satyam Computer jumped 4.81 per cent to Rs 375.10. Wipro added 2.27 per cent to Rs 1,731.10 on sustained buying, following overnight gains in the tech-heavy Nasdaq.

Key index heavyweight stocks remained in the limelight. Cigarette major, ITC surged 5.35 per cent to Rs 1,077.25. State Bank of India, the largest commercial bank, added 4.33 per cent to Rs 622.05.

Reliance Industries jumped 1.69 per cent to Rs 589.45. ICICI Bank fell 0.79 per cent to Rs 302.55. Dr Reddy's Labs eased down 0.12 per cent to Rs 1,410.

Meanwhile, automobile stocks too zoomed on renewed buying. Tata Motors jumped 4 per cent to Rs 465.25. Bajaj Auto surged 3.66 per cent to Rs 1,099. Hero Honda Motor added 1.93 per cent to Rs 456.50. Reliance Energy jumped 3.32 per cent to Rs 533.25 and Tata Power edged up 2.65 per cent to Rs 381.75.

Cement stocks too witnessed hectic action. Larsen & Toubro rose 7.30 per cent to Rs 573.55. Grasim Industries surged 6.52 per cent to Rs 1,118.70. ACC rose 2.87 per cent to Rs 274 and Gujarat Ambuja Cements gained 0.57 per cent to Rs 316.40 on hopes the firm trend in cement prices would sustain.