The Hindu Business Line : Sensex gains 257 points

Heavy rains here for the fifth day in a row failed to dampen market sentiment. Buying across stocks ahead of the corporate results season, particularly in the FMCG, IT and cement sectors, drove indices up on Wednesday. This was despite the Asian markets staying weak.

Train and bus services in the city were partially disrupted, while schools, colleges and some Government offices remained closed. The main runway at the Mumbai airport was also closed for two hours. Corporate offices, brokerage firms and banks functioned with skeletal staff.

The BSE-30 Sensex gained 257.42 points to close at 10,919.64, up 2.41 per cent. NSE S&P CNX Nifty index closed at 3197.10 points, up 1.86 per cent.

All indices ended in the green with the BSE FMCG being the top gainer, up 3.18 per cent, followed by the BSE Metal Index, up 3.11 per cent.

Rupee falls

The rupee dipped against the greenback on the back of dollar buying by importers and thin volumes. The domestic currency opened at 46.04/06 but some sharp buying towards close pushed it down to 46.09/10. "FMCG shares were major drivers at the equity market on account of the good monsoon. Though the overall volume was average, the volumes in FMCG shares were good. HLL was a major gainer," said Mr. Ravindra Kasliwala, Head - Equity Research of Inventure Growth and Securities Ltd. HLL shares ended at Rs 242.20, up 4.24 per cent over the previous day's close.

The biggest gainers were Reliance Energy (up 5.39 per cent at Rs 478.90), Grasim Industries Ltd. (up 4.95 per cent at Rs 1,978.75) and Tata Steel (up 4.92 per cent at Rs 563.85). Reports that Tata Sons would hike its stake in the steel company boosted sentiment.

Dealers said that the slight improvement in volumes was on account of pre-results rally, as the quarterly results of most companies would be announced from next week on. The BSE witnessed trading of 10.01 crore shares.

The overall market breadth was positive with 1326 scrips ending positive compared to 1037 scrips, which ended in the red.

Top losers were Wipro Ltd (down 0.66 per cent) and State Bank of India (down 0.07 per cent).