The Hindu Business Line : Indices bounce back sharply

ENDING the four-day losing streak, the key market indices bounced back sharply on Wednesday. Ignoring the firmness in international crude oil price, BSE Sensex and the S&P CNX Nifty registered sharp gains on Wednesday.

The BSE Sensex closed at 5527.56, up 64.95 points over Tuesday's close of 5462.61. The S&P CNX Nifty logged a gain of 27.7 points before settling at 1727.95 points. Though the indices closed on a firm note, the trading during the day was marked by high degree of volatility.

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The BSE Sensex touched a low of 5428.2 and staged a recovery of about 100 points to close at 5527.56. Reliance Industries, Hindustan Lever, Infosys and ONGC were the top gainers from the stocks that form part of the indices.

Of the lot, Reliance was the top gainer and was instrumental in imparting momentum to the indices.

The share price of the Reliance went up by Rs 17.9 to Rs 514.1. Infosys registered Rs 28.3 gain to close at Rs 1639.7.

Heightened market interest in Government owned companies was a striking feature of the day's trading. Top public sector undertakings such as SAIL, Shipping Corporation, BHEL, Indian Oil Corporation and MTNL found a prominent place in the gainers list.

The share price of SAIL closed at Rs 46.2, up by 6.82 per cent over previous day's close of Rs 43.25. The board of directors of SAIL at its meeting has given an in-principle approval for the proposal to merge Indian Iron and Steel Company with itself.

Along with SAIL, Tata Steel, Essar Steel and Ispat Industries were prominent gainers from the steel sector. The Tata Steel stock was up by 2.64 per cent at Rs 289.85. Just over 37 lakh shares were traded during the day.

After some weakness in the past few days, there was evidence of renewed market enthusiasm towards technology sector stocks. Top companies from the sector such as Infosys, Satyam, TCS, HCL Technologies and Wipro ended the day in the positive territory.

Wipro increased by 2.26 per cent before closing at Rs 583.7. The rise in the share price was not, however, backed by increased volumes. From about 4.17 lakh shares transacted on Tuesday, the trading volumes dropped to 3.16 lakh shares on Wednesday.

The recent market frenzy towards Glenmark Pharma was evident during Wednesday's trading as well. The stock registered a 10 per cent rise to close at Rs 313.65. Trading volumes zipped to 18.8 lakh shares from 19850 shares recorded the previous day. The share price has appreciated by over 50 per cent in the last six trading sessions.

Along with Glenmark, Natco Pharma was another top gainer from the mid-cap pharma sector. The share price of Natco Pharma increased 8.8 per cent or Rs 10.55 before closing at Rs 130.5. Trading volumes more than doubled to 3.12 lakh shares from 1.32 lakh shares recorded the previous day.

Sundaram Clayton, Sesa Goa, Tata Metalliks and KEC International were other prominent gainers of the day. Sundaram Clayton increased by 6.5 per cent or Rs 32.45 to Rs 532.45. The rise in price was on the back of a spurt in trading volumes to 31,217 shares from 442 shares. After lying low in the past few days, KEC International logged a 5.4 per cent rise to close at Rs 114.3. Trading volumes at 5.86 lakh shares was up sharply in relation to 1.42 lakh shares recorded the pervious day.

Despite the buoyant undertone, the stocks such as Vindya Telelinks, Sun Pharma, Bata India and Ranbaxy Labs were confined to the losers list. Vindya Telelinks dropped by 7.8 per cent or Rs 5.85 to close at Rs 69.4. Trading volumes ebbed to 1.2 lakh shares from 5.5 lakh shares recorded the previous day.

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