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Rally continues as Sensex soars to new all-time high

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MUMBAI — After Tuesday's solid surge, the market firmed up further yesterday. The market hit new all-time high towards the latter part of the trading session. Easing of political worries and firm Asian markets boosted the bourses for the second day in a row.

Published: Thu 11 Oct 2007, 8:29 AM

Updated: Sat 4 Apr 2015, 11:24 PM

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  • Our Correspondent

IT stocks edged higher ahead of Infosys' results which are due today. Capital goods, banking, realty and metal stocks surged. Auto stocks underperformed. The market breadth turned negative in the latter part of trade.

The market had pared gains in mid-morning trade after an initial surge to a record high. Mid-cap and small-cap indices underperformed the Sensex. European markets, which opened after Indian markets, were subdued yesterday.

Asian markets, which opened before Indian markets, ended on positive note. MSCI's measure of Asia Pacific stocks excluding Japan hit a record high yesterday.

The BSE 30-share Sensex rose 378.01 points, or 2.07 per cent, to 18,658.25, a record closing high. Sensex opened with an upward gap of 193.19 points at 18,473.43. Sensex had climbed 423.23 points for the day at the day's high of 18,703.67 in late trade. It hit a low of 18,436.99 in the day.

The Congress-led United Progressive Alliance (UPA) government at the centre and its communist allies stepped back from the brink on Tuesday, 9 October 2007, agreeing to meet again this month to resolve a row over a nuclear deal with the United States. The next meeting of the UPA-Left committee which is looking into Left Frontís concerns over nuclear deal will be held on 22 October 2007. The committee held its fourth meeting in New Delhi yesterday.

The meeting was held in the backdrop of widening of rift on the nuclear deal with Left parties rejecting a plea of the government that it be allowed to engage in negotiations with International Atomic Energy Association (IAEA) over the nuke deal.

The fact the two sides would meet again signaled that the communists, whose parliamentary support keeps the ruling coalition in power, would not withdraw their support for the government immediately which the stock market had feared. News that the two sides would meet again sent Sensex surging 789 points on Tuesday, 9 October 2007.

Infosys rose 3.74 per cent to Rs 2,124.55 extending its recent solid rebound. Infosys will announce Q2 September 2007 results today. TCS (up 2.6 per cent to Rs 1,124.95), Wipro (up 2.83 per cent to Rs 503.15) and Satyam Computer Services (up 2.91 per cent to Rs 484.25), also edged higher ahead of Infosys' results.

A total of seven brokerages expect a between 0.58 per cent fall to a 4.6 per cent rise in Infosys consolidated net profit as per Indian GAAP to between Rs 1,072.70 crore to Rs1128.70 crore in Q2 September 2007 compared to net profit of Rs 1,079 crore Q1 June 2007. They expect a between 6.8 per cent to 9.7 per cent growth in Infosys revenue at between Rs4,028.60 crore to Rs 4,138.40 crore in Q2 September 2007 compared to revenue of Rs3,773 crore in Q1 June 2007.

Capital goods stocks surged. Larsen & Toubro (L&T) surged 6.6 per cent to Rs 3,372. It hit an all-time high of Rs 3,450 yesterday after it bagged $60 million order in Saudi Arabia.

Bharat Heavy Electricals (Bhel) rose 4.2 per cent to Rs 2,330.65. It hit an all-time high of Rs 2,387 yesterday. Suzlon Energy rose 5.7 per cent to Rs 1,768.55. It hit an all-time high of Rs 1,791 yesterday.

India's largest private company in terms of market capitalisation and oil refiner Reliance Industries rose 0.65 per cent to Rs 2,617.35. It hit an all-time high of Rs 2,675 yesterday.

Auto stocks underperformed Sensex. Hero Honda Motors (up 1.28 per cent to Rs 753.70) and Tata Motors (up 1.78 per cent to Rs805.85) edged higher whereas Bajaj Auto (down 0.85 per cent to Rs 2,620.95) and Maruti Suzuki India (down 0.39 per cent to Rs 1,101.05) drifted lower.

ACC rose 3.53 per cent to Rs1,218.15 and was among the major gainers from Sensex pack. Reliance Energy rose 3.4 per cent to Rs1,585.85. It hit an all time high of Rs1,624.60 yesterday.



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