The Hindu Business Line : Equity markets greet New Year in style

Strong auto sales numbers and domestic institutional buying handed out a 155-point New Year bonus to traders. The BSE-30 Sensex gained 1.13 per cent or 155.33 points to end at 13,942.24. It follows two consecutive loss-making sessions during the last week of 2006.

The S&P CNX Nifty closed above the 4,000-mark at 4,007.40 , up 1.03 per cent. Shares generally moved in positive territory for the entire day.

The BSE Auto index was the major gainer with top companies posting good sales numbers. Auto index ended 3.22 per cent higher at 5,696.04 points.

Auto stocks made impressive gains. Bajaj Auto was up 4.58 per cent at Rs 2,738.75, Maruti Udyog gained 4.52 per cent at Rs 969.25, Tata Motors moved up 3.29 per cent at Rs 929.90 and Hero Honda rallied 2.86 per cent at Rs 784.15.

All sectoral indices ended in green. The BSE IT and Teck index ended higher by 1.83 per cent and 1.38 per cent, respectively. "Markets are expecting good corporate results in Q3 and Infosys results next week will provide the direction to markets," said Mr Ravindra Kasliwala, Head - Equity, Inventure Growth and Securities.

Dealers said there has been high open interest in Nifty futures with a majority being in IT stocks expecting good Q3 tidings from IT companies. If the hopes are belied it could be a cause of concern for the markets, dealers said.

However, no major correction should take place before the Infosys results, said dealers. "Sensex may touch 14,200 levels before the results begin," said Mr Kasliwala.