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Markets end higher on buying in tech, bank stocks
Thursday, 12 June 2003, 19:30 IST
MUMBAI: India's blue-chip share market index finished in the positive zone, after slipping lower in the previous session, as investors picked up stocks of technology and banking companies that came under profit booking Tuesday.
The market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed at 3,314.60, representing a gain of 25.05 points or 0.76 percent over its previous session's close.
Dealers said that the market opened firm and surged higher in the early trade on buying in technology shares, tracking an overnight gain on the tech-laden Nasdaq stock exchange.
The rally gained momentum towards the end of the trade as banking counters witnessed fresh buying interest after facing selling pressure in the previous trading session.
Shares of banking companies came under the hammer Tuesday after Finance Minister Jaswant Singh sought a probe in recent rally on bank counters that had seen select banking firm rising as much as 30 percent in couple of trading sessions.
Singh said on Monday that the government had asked the market regulator to submit a report on the movement of banking stocks.
The bank shares had behaved somewhat erratically in the last few sessions following statements by officials that the government was planning to charge a premium on the return of capital by public sector banks.
"Yesterday's selling pressure on banking counters was a knee-jerk reaction of investors to the finance minister's statement," said a fund manager with a foreign brokerage firm.
"Today's recovery in bank counters shows that investors have faith in public sector banks growth prospects. The advancing monsoon rains is also keeping the undertone of the market firm."
Hopes that normal monsoon rains would increase demand for industrial and consumer goods and take the economy to a higher trajectory of growth had taken old economy stocks to sharply higher levels in last couple of weeks' trade.
The quantity of rainfall in the June-September period is crucial for the farm sector that accounts for nearly a quarter of the gross domestic product and employs 70 percent of the country's over one billion population.
In the old economy sector, BSES, the power distribution arm of India's powerful Reliance group, gained 12.9 percent to touch 
259.55 after it was announced that it would soon be renamed as Reliance Energy.
Reliance also announced BSES' foray into power trading and transmission and setting up of two special purpose vehicles.
State-run Bharat Heavy Electricals rose 3.5 percent to 264.60 after the company said Monday it had bagged a 7.72 billion order for setting up a captive power plant for Indian Oil Corporation Ltd.
As part of the agreement, BHEL will set up a 120 MW integrated captive co-generation power plant for Indian Oil's refinery expansion and petrochemical projects at Panipat in Haryana.
Reliance Industries, India's largest refiner and petrochemicals maker, ended 1.6 percent higher at 307.65 and consumer goods maker Hindustan Lever closed with a gain of 0.5 percent at 169.90.
In the tech sector, HCL Technologies, a New Delhi-based software development and services major, rose 3.7 percent to 149 and Infosys Technologies, the country's largest listed software exporter, ended 2.2 percent higher at 2,934.65.
Source: IANS
259.55 after it was announced that it would soon be renamed as Reliance Energy.
Reliance also announced BSES' foray into power trading and transmission and setting up of two special purpose vehicles.
State-run Bharat Heavy Electricals rose 3.5 percent to 264.60 after the company said Monday it had bagged a 7.72 billion order for setting up a captive power plant for Indian Oil Corporation Ltd.
As part of the agreement, BHEL will set up a 120 MW integrated captive co-generation power plant for Indian Oil's refinery expansion and petrochemical projects at Panipat in Haryana.
Reliance Industries, India's largest refiner and petrochemicals maker, ended 1.6 percent higher at 307.65 and consumer goods maker Hindustan Lever closed with a gain of 0.5 percent at 169.90.
In the tech sector, HCL Technologies, a New Delhi-based software development and services major, rose 3.7 percent to 149 and Infosys Technologies, the country's largest listed software exporter, ended 2.2 percent higher at 2,934.65.
Source: IANS