Market recovers on renewed buying

MUMBAI — The market which saw series of wild swings in first half of the day amid negative bias, surged in the second half on value buying coupled with short covering. Strong Asian and European markets yesterday, boosted local bourses. The market breadth recovered from early weakness, but still ended negative.

By Our Correspondent

Published: Thu 23 Aug 2007, 9:12 AM

Last updated: Sat 4 Apr 2015, 9:24 PM

Yesterday's recovery is commendable, coming in the backdrop of Tuesday's 438-point fall in Sensex that was triggered by concerns arising from the fluid political situation in New Delhi, with the prospect of a general election looming large.

Sensex gained 259.55 points or 1.86 per cent to settle at 14,248.66. It had opened with an upward gap of 66.29 points at 14,055.40. Sensex hit high of 14,281.48 and low of 13,870.70. Sensex swung in a band of 410.78 points for the day.

At the day's high, the Sensex had gained 292.37 points. It had lost 118.41 points at the day's low.

The benchmark index, BSE Sensex, is down 1620.19 points from its all time high of 15,868.85, struck on July 24, 2007.

Reliance Energy, the country's second largest power generation and distribution company in terms of sales jumped 5.92 per cent to Rs 733 on 12.55 lakh shares. It was the top gainer from Sensex pack. The stocks lost 8.20 per cent to Rs692 on August 21, 2007 from Rs748.30 on August 10, 2007.

India's leading power equipment maker Bharat Heavy Electricals soared 4.69 per cent to Rs1665 after winning contracts worth Rs6500 crore for setting up power project units. The orders have been placed by Damodar Valley Corporation (DVC).

India's largest listed cellular operator, Bharti Airtel surged 4.22 per cent to Rs847.55 on reports it will double its tower capacity to 80,000 by March 2008 as it grows its network to reach more towns and cities across the country, while expanding in the metros. Currently it has 40,000 towers.

Shares from metal sector recovered from sharp recent fall that was triggered by falling metal prices on London Metal Exchange (LME). India's largest private sector steel maker Tata Steel surged 3.96 per cent to Rs567.70.

Other metal stocks, Sterlite Industries (up 4.31 per cent to Rs567.10), Sesa Goa (up 1.28 per cent to Rs1736.10) and Hindustan Zinc (up 2.47 per cent to Rs692), also edged higher.

Dr Reddy's Laboratories rose 1.50 per cent to Rs631, recovering from a low of Rs612.20 after it got an approval from the US Food and Drug Administration for cholesterol-lowering simvastatin tablets.

India's largest cigarette manufacturer ITC jumped 3.94 per cent to Rs158.20 on high volumes of 26.07 lakh shares. As per reports, ITC has taken over Australian agri-biotech company Technico Pty for an undisclosed sum as part of a strategy to strengthen its foods business. The deal was executed through its subsidiary Russell Credit, ITC, which recently launched its Bingo brand potato chips.