The Hindu Business Line : Sensex crosses 11,000 mark

REVIVAL OF FORTUNES: A stock dealer delighted with the upward movement of the market on Tuesday in Mumbai as the BSE Sensex breached the 11K-mark by gaining 202 points. -- Paul Noronha

Mumbai , Aug. 8

The BSE Sensex breached the 11,000-mark on Tuesday to end at 11,014.97, up 202.38 points, on expectation that the US Federal Reserve would put on hold any further hike in interest rate. According to dealers, the rise was primarily triggered by hopes that the US Federal Open Market Committee (FOMC) slatedto meet on Tuesday may not hike interest rates. The NSE's Nifty closed at 3,212.40, up by 61.3 points or 1.95 per cent. It is the first time since May 18 that the Sensex has closed above the 11,000-mark.

`Market cautious'

"The market is trading very cautiously. Even after breaching the psychological 11,000-point mark, market felt the absence of a `trigger' to drive it up further. A good rally in the banking, oil and natural gas and automobile stocks helped the market shore its gains on Tuesday. The market will remain `stagnant' (up or down by 60-65 points) in the coming days," said Mr Gaurang Shah of Geojit Financial Services.

Gainers and losers

Amongst the top gainers, shares of ICICI Bank ended higher by 4.79 per cent to close at Rs 595.30. Other top gainers of the day included L&T Ltd, up by 3.42 per cent to close at Rs 2,285.60 and Bharti Airtel, up by 3.28 per cent to end the day at Rs 404.85. Reliance Communications Ltd also bounced back to end the day firm at Rs 277.65, up by 3.04 per cent. Amongst the top losers were BHEL, down by 0.90 per cent to close at Rs 2,166.30, Ranbaxy Laboratories down 0.34 per cent to end at Rs 395.85 and Hero Honda down by 0.27 per cent or Rs 1.80 to close at Rs 668.25.

Though the markets appeared to have bounced back, brokers remained unhappy about the low volumes traded.

"The market traded very low volumes on Tuesday. Many investors squared off positions, fearing a hike in interests by the US Fed Reserve. FIIs were also not active during the day. If the FOMC does not hike interest rates, we will see some positive vibes in the coming days," said Mr Rajesh Kanti of Edelweiss Capital Ltd. As per provisional data available, FIIs were net buyer on the BSE and the NSE to the tune of Rs 165.15 crore on Tuesday.

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