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Indian shares rebound from lower levels on value buying
Wednesday, 15 October 2003, 19:30 IST
MUMBAI: India's benchmark share market index bounced back smartly from its previous session's lower levels Wednesday with investors picking up stocks of heavyweight companies on impressive earnings growth hopes.
The stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed at 4,855.26, representing a gain of 73.23 points or 1.53 percent over its previous session's close.
The index had closed 1.39 percent lower Tuesday after closing higher in 11 consecutive sessions.
The stock market had staged smart rally in the last 11 consecutive sessions with investors enlarging positions on shares of old as well as new economy companies on hopes of robust quarterly corporate earnings report.
Dealers said that the market opened higher with institutional investors rushing to buy shares of auto, bank and steel companies after most of blue-chip traditional sectors counters slipped lower in the previous session on profit taking.
The investor sentiment was also supported by sustained fund investments by foreign institutional investors, which act as the backbone for liquidity starved domestic equity market.
"The market is bound to see occasional profit taking after sustained bull-run for some time but the overall market fundamentals continues to be very strong," said a fund manager with a foreign brokerage firm.
"The overall bullishness in the market is basically the result of strong hopes that most of the heavyweight old as well as new economy stocks would post strong financial numbers for the second quarter," the fund manager added.
Market traders closely track quarterly and annual fiscal results of heavyweights like Infosys and consumer goods giant Hindustan Lever to get some clue about industry's overall health.
Bangalore-based Infosys said on October 10 its net profit for the July-September quarter in the current fiscal year touched 
3 billion, a growth of 33 percent on 2.26 billion logged in the same period of the previous fiscal year.
In the old economy sector, Tata Steel, India's largest private sector steel maker, gained 5.3 percent to touch 343.50 on hopes that the company would post robust earnings growth for July-September quarter.
Bajaj Auto, a leading two-and-three wheeler maker, ended nearly five percent higher at 890.20 and Tata Motors, the automobile manufacturing arm of India's diversified conglomerate Tata group, rose 3.6 percent to 380.30.
Hero Honda Motors, the country's largest motorcycle maker, advanced 0.7 percent to 337.75 after the company reported a net profit of 1.56 billion on total income of 13.01 billion.
Other major gainers in the sector included State Bank of India, Reliance Industries, Hindustan Lever, ITC, Reliance Energy, Cipla, Ranbaxy Laboratories, and Allahabad Bank.
In the tech sector, Hyderabad-based Satyam Computer closed with a gain of 1.8 percent at 292.85 and Infosys Technologies, India's largest listed software exporter, was up 0.5 percent at 4,736.60.
Source: IANS
3 billion, a growth of 33 percent on 2.26 billion logged in the same period of the previous fiscal year.
In the old economy sector, Tata Steel, India's largest private sector steel maker, gained 5.3 percent to touch 343.50 on hopes that the company would post robust earnings growth for July-September quarter.
Bajaj Auto, a leading two-and-three wheeler maker, ended nearly five percent higher at 890.20 and Tata Motors, the automobile manufacturing arm of India's diversified conglomerate Tata group, rose 3.6 percent to 380.30.
Hero Honda Motors, the country's largest motorcycle maker, advanced 0.7 percent to 337.75 after the company reported a net profit of 1.56 billion on total income of 13.01 billion.
Other major gainers in the sector included State Bank of India, Reliance Industries, Hindustan Lever, ITC, Reliance Energy, Cipla, Ranbaxy Laboratories, and Allahabad Bank.
In the tech sector, Hyderabad-based Satyam Computer closed with a gain of 1.8 percent at 292.85 and Infosys Technologies, India's largest listed software exporter, was up 0.5 percent at 4,736.60.
Source: IANS