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Stocks surge as buying continues

MUMBAI — The market settled with gains for the fourth straight session on continued buying demand for index pivotals as US stocks rallied overnight on expectation that the US Federal Reserve would cut rates in September 2007 to cushion the impact of the subprime crisis on the broader US economy.

A bout of volatility was witnessed towards the fag end of the trading session ahead of expiry of August 2007 derivatives contracts.

US stocks rallied across the board on Wednesday, August 29, 2007 boosted by strong gains in technology and energy shares. The Dow Jones Industrial Average surged 247 points, or 1.9 per cent, to 13,289. The S&P 500 index rose 31 points, or 2.2 per cent, to 1,463 and the technology-laden Nasdaq Composite rallied 62 points, or 2.5 per cent, to 2,563 points.

The sensex has now surged 957 points in four trading sessions, from its close of 14,163.98 on August 23, 2007.

Crude oil prices steadied yesterday. US crude inched up 2 cents to $73.53 a barrel.

The 30-stock sensex resumed at 15,168.69 and hit the day's high at 15,200.81. Selling pressure in pivotal stocks pulled down the index to the day's bottom at 15,053.98 before it ended the day at 15,121.74 with a gain of 129 points or 0.9 per cent over the previous close of 14,993.04.

The BSE-100 index zoomed 58 points or 0.8 per cent to finish at 7,745.63 and the BSE-Teck index soared 38 points or 1.1 per cent to finish at 3,592.90.

Banking stocks advanced on a view that the interest rates have peaked. Ing Vysya Bank zoomed 4.6 per cent to finish Rs252.20, Vijaya Bank rose 3.9 per cent to finish Rs55.25, Hdfc Bank jumped 2.2 per cent to close at Rs1182.05 and Bank Of India was higher by 0.5 per cent to end at Rs238.45.

Pharma major Ranbaxy Lab rose 1.6 per cent to finish Rs377.95. Recently, US Food and Drug Administration gave approval to the company to make and market two drugs hydrocodone bitartrate and acetaminophen prescribed for pain relief. Total annual market sales of the drugs were $391 million.

Metal stocks displayed gains amid high volumes. SAIL surged 2.5 per cent to finish Rs165.30 clocking a volume of 4.1 million shares and Ispat Inds was higher by 0.8 per cent at Rs18.45 recording a volume of 16.1 million shares.

Technology major Infosys Tech rose 1.3 per cent to finish Rs1858.40. As per report, Infosys Technologies plans to increase billing rates for new customers by 3-4 per cent due to the sharp appreciation of the rupee against the dollar. The billing rates for existing contracts could increase by 2-3 per cent. Infosys gets about 60 per cent of its revenue from the United States.

Other technology stocks Wipro at Rs476.25 (up 1.3 per cent) and Satyam Computers at Rs445.55 (up 0.1 per cent) also ended higher.

Cement stocks ACC at Rs1061.10 (up 1.9 per cent) and Grasim Inds at Rs2941.20 (up 1.1 per cent) also ended higher.

Other sensex heavyweights ITC at Rs170.50 (up 1.2 per cent) and Reliance Inds at Rs1907.40 (up 0.9 per cent) also contributed to the gain in the sensex.

Other major gainers were VSNL at Rs407.25 (up 6.71 per cent), Sun Tvnet at Rs330.25 (up 5.87 per cent), HMT at Rs62.10 (up 5.61 per cent), Escorts at Rs90.15 (up 5.50 per cent), Glaxosmith at Rs1184.50 (up 5.35 per cent), Exide Inds at Rs61.45 (up 4.51 per cent) and Welsp Guj Sr at Rs234.45 (up 4.08 per cent).

Major decliners were Nat Aluminium at Rs255.70 (down 4.55 per cent), Lanco Infra at Rs286.80 (down 4.21 per cent).