Stocks

Sensex gains 227 points; IT stocks hog the limelight

PTI Mumbai | Updated on February 21, 2011

Fag-end buying pushed up the BSE benchmark Sensex sharply by 227 points to close at 18,438.31 today, as investors bought strong stocks at cheaper levels led by IT sector. Buying by funds to cover up their pending positions ahead of settlement in the derivatives sector too aided the market sentiment.

The Bombay Stock Exchange benchmark Sensex, which touched the day’s low of 18,082.66, bounced back sharply in the last 30 minutes of trading to close higher by 226.79 points at 18,438.31.

The broad-based National Stock Exchange index Nifty, after falling to 5,413.10 points, closed at 5,518.60 with a handsome gain of 59.65 points.

Brokers said the trading sentiment was bolstered after Credit Suisse Group upgraded Wipro and State Bank of India reportedly saying that the net interest margins may rise.

Wipro, India’s third-largest software services provider, surged the most since November 22 by rising 4.12 per cent to Rs 450.25 after Credit Suisse raised its rating to “outperform” from “neutral’’.

Overall, IT stocks move up on a rebound in the European region, a major centre for technology business.

Major market players were buying stocks to wind up their pending long positions ahead of the expiry of current month settlement in the derivatives segment on Thursday.

The most-heaviest Reliance Industries rose by 2.04 per cent to Rs 956.50 and the second heaviest Infosys Technologies by 2.09 per cent to Rs 3,161.20. The two carry nearly 23 per cent weightage on the index.

In the 30-BSE index components, 20 stocks closed with gains and barring auto, all the sectoral indices remained higher.

The upsurge was partly checked by auto stocks, led by Tata Motors, as they fell on fears that hike in interest rates might hamper the sales. The auto sector index fell by 1.18 per cent to 8,614.90.

Tata Motors, owner of Jaguar Land Rover, slid 3.33 per cent to Rs 1,161.95. Hero Honda Motors, the biggest motorcycle maker, dropped 1.66 per cent to Rs 1,439.35. Maruti Suzuki fell by 1.31 per cent to Rs 1,212.65.

As the bargain buying prevailed in the market, investors pulled out funds from low value stocks to front runners. As a result, the small-cap index fell by 0.09 per cent to 8,121.26 and the mid-cap index by 0.04 per cent to 6,659.18.

Published on February 21, 2011

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