Sensex sets 2007 off to a good start

Welcoming the new year with a bang on Tuesday, the Bombay Stock Exchange's (BSE's) 30-share Sensex gained 155.33 points, or 1.13 per cent, to reach 13.942.24 and the broadbased S&P CNX Nifty again breached the 4,000-mark to end the day at 4,007.40, up 1.03 per cent, on sustained buying in automobile, infotech and banking stocks.

On the first trading day of 2007, the Sensex opened 40 points up at 13,827.77, rose to an intra-day high of 13,980.54, and heard the closing bell at 13,942.42.

The Nifty, which touched an intra-day high of 4,016.65, almost recovered the level reached on December 7 last year, when it ended in 4,000 territory for the last time.

"Tuesday's gain was more on expectations of strong third quarter performances, which were expected to be better than what was predicted earlier. Automobile stocks, especially two-wheeler stocks, might put up a good show this quarter," said Sanjay Chawla, head of research, SBI Capital Markets Ltd.

He, however, maintained that the strong sentiment shown by the market on Tuesday did not mean it would remain bullish in the medium term.

Automobile and infotech scrips dominated the list of gainers on Tuesday. Satyam Computer Services Ltd was the top gainer at Rs 508.35 (up 5.04 per cent), followed by Bajaj Auto, which rose 4.58 per cent to Rs 2,738.75, on the back of a 24 per cent rise in December sales.

Maruti Udyog (up 4.52 per cent to Rs 969.25), Tata Motors (up 3.29 per cent to Rs 929.90), and Hero Honda (up 2.86 per cent to Rs 784.15) were the other gainers, as also were Tata Consultancy Services, Hindalco, Gujarat Ambuja, and Ranbaxy Laboratories.

Tata Steel, struggling to finalise its open offer for Anglo-Dutch steel-maker Corus, was the biggest loser, shedding 0.81 per cent to end the day at Rs 478.40. Dr Reddy's scrip lost 0.65 per cent to end at Rs 805.95, HDFC fell by 0.28 per cent to Rs 1,620 and Reliance Communications was down 0.12 per cent to Rs 470.75.

Nissan Copper, which made a stunning debut on the bourses on Friday, gained more than 200 per cent, with a large number of bulk deals making the scrip hit the upper circuit at Rs 154, though it lost 10.56 per cent to end at Rs 115.20.

Of the 2,639 stocks, 1,927 (73 per cent) advanced and 656 declined (24 per cent), while the prices of 56 remained unchanged.