The Hindu Business Line : MTNL, banking counters sizzle

Both the US and Indian bourses witnessed record gains last week thanks to strong investor confidence. While the S&P's 500 Index climbed the most in six weeks on takeovers, the Dow average rose 1.2 per cent and the Nasdaq Composite Index 2.2 per cent.

Strong global cues coupled with easing inflation pressure helped the NSE's S&P CNX Nifty touch its all-time high at 4325.80 last week; it, however, closed a shade lower at 4297.05, a gain of 1.15 per cent over a week. The BSE's Sensex also closed with a gain of 1.62 per cent.

Despite strong show by both the countries' benchmarks, it was not all that rosy for Indian counters. Dr Reddy's Lab, Infosys Technologies, Patni Computers and VSNL ended the week in negative territory.

MTNL was the star performer with a gain of nine per cent followed by HDFC Bank (5 per cent) and ICICI Bank (3.5 per cent).

While easing inflation seemed to have lifted banking counters, reports that MTNL may announce the winner for developing its property in Noida in the next 10 days seemed to have acted as a trigger for the telecom major. MTNL had invited bids to develop 20 acres of land in Noida, on the outskirts of Delhi.

According to Ms Anita Soni, Director of Finance, MTNL, the telecom company plans to lease a part of that space for 50 years and will get an upfront fee from the developer.

Besides, the decision of MTNL (along with BSNL) to cut roaming charges also appeared to have triggered some interest in the stock.

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