Sustained buying sees shares end higher for 3rd day

Friday, 04 April 2003, 20:30 IST
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MUMBAI: India's blue-chip share market index finished in positive zone for the third successive session Thursday following institutional buying on hopes that the Iraq war would end soon as the U.S.-led forces race towards Baghdad. Reflecting the bullish sentiment, the market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed at 3,151.16, representing a gain of 34.17 points or 1.10 percent over its previous session's close. Dealers said that the market opened firm and after moving within a range in the early trade it surged higher, triggered by hopes that the ongoing military conflict between the U.S.-led forces and Iraq may not continue for long. "The stock market sentiment got a boost from reports that the U.S.-led coalition forces are closing in on the Iraqi capital," said a fund manager with a foreign brokerage firm. "The investors are betting on speculations that the war may not continue for long after the coalition forces make their way into Baghdad. This is a good buying opportunity as most of the stocks are trading at very low levels." A U.S. Army Black Hawk Helicopter has been shot down near the southern Iraqi town of Karbala as the U.S.-led coalition forces pursued their forward thrust after battering the elite Republican Guards The Republican Guard's Baghdad division had "been destroyed" by the First Marine Expeditionary Force near the town of al-Kut. The U.S. unit was now southwest of Baghdad. Experts say while India may manage to absorb the impact of a short conflict with little damage to oil supply, a long and messy military campaign would put roadblocks in front of the feeble Indian economic rebound. While technology stocks led the rally following a firm trend in the European markets, bargain hunting was also seen in select old economy and defensive sector stocks on expectations of improved quarterly earning results. A host of Indian technology and old economy companies will start unveiling their January-March quarterly and fiscal year 2002-03 results from early next week. In the tech sector, Infosys Technologies, India's largest listed software exporter, gained 4.3 percent to touch 4,306.45 on hopes that the company would unveil better-than-expected quarterly financial numbers. The Nasdaq stock exchange listed Infosys will announce its January-March quarterly and fiscal year ended March 31, 2002 results on April 10. HCL Technologies, a New Delhi-based software development and services major, rose 2.1 percent to 162.45 and Hyderabad-based Satyam Computer closed with a gain of 1.9 percent at 183.25 on sustained buying support. In the old economy sector, Reliance Industries, India's largest petrochemicals maker and refiner, ended 1.4 percent higher at 285.70 on speculation that its gas discovery off eastern coast last year could be higher than initial estimates. State-run Mahanagar Telephone Nigam gained 2.3 percent to touch 101.55 and Hindustan Petroleum Corporation closed with a gain of 1.6 percent at 298.95. Tobacco giant ITC gained 0.9 percent to 631.80 and State Bank of India, the country's largest commercial bank, ended 0.5 percent higher at 279.05 on fresh institutional buying.
Source: IANS