Equities harden on buying interest

MUMBAI — The market which opened on a weak note, recovered all the lost ground to post marginal gains, on strong buying in index pivotals, especially Reliance Industries. However IT pivotals stayed weak, on fears of US economy heading towards recession. The market breadth was strong on BSE in contrast to initial weakness.

By Our Correspondent

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Published: Tue 11 Sep 2007, 8:53 AM

Last updated: Sat 4 Apr 2015, 11:36 PM

The market had opened on a weak note following a sell-off in US stocks on Friday, after data showed US firms cut 4,000 jobs last month, the first such decline since August 2003.

The BSE 30-share Sensex rose 6.41 points or 0.04 per cent at 15,596.83. It opened with a 176.84 points downward gap at 15,413.58 and slipped further to touch a low of 15,363.53. However, the index witnessed a sharp pull-back from lower levels to hit a high of 15,626.28

At the day's low of 15,363.53, the Sensex had lost 226.89 points for the day. At day's high of 15,626.28, it had gained 35.86 points for the day. Sensex oscillated 262.75 points for the day

The BSE Sensex is now 272.02 points away from its all time high of 15,868.85 hit on 24 July 2007. IT shares were weak on fears that the US economy may be headed into a recession. Indiaís top software services exporter by revenue TCS lost 2.97 per cent to Rs 1045.30 on 2.72 lakh shares. It was the top loser from Sensex pack.

Other IT pivotals — Infosys Technologies (down 2.06 per cent to Rs 1869.45), Wipro (down 2.45 per cent to Rs 466.70), and Satyam Computers (down 1.39 per cent to Rs 443.50) — declined. IT firms derive over 50 per cent of their revenue from exports to the US.

The Indian rupee recovered from an initial fall that was caused by fears about a reversal in risk appetite after weak US job data triggered a sell-off in Asian equity markets. Rupee was hovering at 40.64, a bit stronger than Friday 's close of 40.6875/6975. Oil & Natural Gas Corporation (ONGC), the country's largest oil exploration company by market capitalisation, slipped 2.20 per cent to Rs 832. It went Rs 13 per share ex-dividend from today. ONGC's shares have face value of Rs 10 each.

ICICI Bank (down 0.76 per cent to Rs 912), HDFC (down 1.65 per cent to Rs 2095) and Hindalco Industries (down 1.56 per cent to Rs 154.50) were the other losers from Sensex pack.

India's largest cigarette manufacturer ITC advanced 3.80 per cent to Rs 184.60 on 15.44 lakh shares. It was the top gainer from the Sensex pack. As per recent reports, after getting approval from the shipping ministry, Kolkata Port Trust (KoPT) may give land to ITC for expanding its existing cigarette factory. Cement stocks Ambuja Cements (up 2.82 per cent to Rs 144) and Grasim (up 0.93 per cent to Rs 3212) edged higher on fresh buying.

India's third largest pharma company by revenue Ranbaxy Laboratories gained 2.21per cent to Rs 418.95. World Health Organisation (WHO) has included the company's three drugs for treatment of AIDS in its pre-qualification list. With the new additions, 15 Anti Retroviral (ARV) products of the company are now in the WHO's pre-qualification list.

NTPC, the nationís largest power generation company, rose 2.48 per cent to Rs191.80. The stock hit a record high of Rs 192. As per reports, NTPC is in talks with established players to manufacture power plant equipment.

India's largest private sector company by market capitalisation and oil refiner Reliance Industries (RIL) staged a sharp recovery from day's low of Rs 1945. It rose 1.27 per cent to Rs 1986.45 on 6.19 lakh shares. It is now at a striking distance of its all-time high of Rs 1999.30 hit on 5 September 2007. RIL yesterday, reached an agreement to acquire assets of Hualon, a leading polyester producer in Malaysia. This acquisition will bestow RIL with more than 7 per cent global market share in polyester fibre and yarn.

Auto stocks rebounded from early lows on value buying. Tata Motors (up 0.79 per cent to Rs 702, off its day's low of Rs 683.05), Maruti Udyog (up 0.81 per cent to Rs 879.95, off its day's low of Rs 860), and TVS Motor Company (up 13.44 per cent to Rs 73, off its day's low of Rs 63.90) recovered from their lows.

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