Sensex ends higher by 94.38 points at 16,158.28

Mumbai, Nov 6 : The Sensex of the Bombay Stock Exchange (BSE) rose for the third consecutive day today by 94.38 points to settle at 16,158.28 on heavy speculative demand from Foreign Institutional Investors (FII's) and mutual funds coupled with bullish global cues.

The Nifty index of National Stock Exchange (NSE) also moved up by 30.60 points to end at 4796.15.

The key heavyweight stocks extended last two days' strong gains as US dollar fell against a basket of major currencies. But intraday volatility was high. Metal, banking and realty stocks edged higher.

But FMCG and auto stocks fell.

Index heavyweight Reliance Industries also edged higher.

Intraday volatility was quite high. The market surged in early trade on firm Asian markets and overnight surge in US stocks, triggered by positive economic data in the US. The market remained range bound in mid-morning trade. It pared gains in early afternoon trade and soon came off the lower level. Volatility ruled the roost as the Sensex tumbled to a fresh intraday low in afternoon trade. The market regained strength in mid-afternoon trade, brokers said.

The Nifty ended higher for the third consecutive day on the back of buying in banking & financial, metal, realty and oil & gas stocks along with L&T. It remained above the 4,800 mark in the first half of trade but could not hold that level in the second half of trade due to volatility.

The equity benchmarks started the day on a strong note following positive US and Asian cues led by encouraging US economic data. But the indices turned extremely volatile with a positive bias in the second half of trade, as FMCG, auto and cement stocks were under pressure. Among the asian markets, Shanghai was up just 0.3% and other markets ended 0.6-1.6 per cent higher. The US markets ended 2-2.4 per cent higher on Thursday.

The dollar index, a gauge of the US unit's performance versus six majors, was down 0.2 per cent. With short-term interest rates very low, global traders have turned to borrowing funds cheaply in the US and then reinvesting the proceeds in equities and commodities, looking to lock in higher returns and benefiting from further erosion in the dollar.

The Indian government on Thursday mandated more sales of shares by state-run firms and changed the rules on how it can use the proceeds, as it seeks to boost revenues and rein in a widening budget deficit. The government said all profitable, listed state-run firms must have at least 10 pc of their shares in public hands, and unlisted firms that had a positive net worth, no accumulated losses and a net profit over the past three years should list.

The BSE 30-share Sensex resumed firm at 16,137.42 points. The Sensex rose 219.96 points at the day's high of 16283.86 in mid-morning trade. It rose 11.29 points at the day's low of 16075.19 in afternoon trade.

The Nifty index opened also high at 4767.50 points and later recorded the day's high and low at 4836.20 and 4764.85 points respectively.

Total traded turnover was at Rs 1,00,239.10 crore. This included Rs 16,834.57 crore from the NSE cash segment, Rs 77,394.87 crore from the NSE F&O and the balance Rs 6,009.66 crore from the BSE cash segment. BSE clocked a turnover of Rs 5997 crore, higher than Rs 5972.13 crore on previous day.

The market breadth was strong. On BSE, 1882 shares advanced as compared with 799 that declined. A total of 73 shares remained unchanged. From the 30 share Sensex pack, 16 stocks rose and the rest fell.

The key BSE indices advanced with PSU index rising by 3.91 per cent to settle at 8794.80 points, Realty index by 2.81 pc to 3993.68 pts, MID CAP index by 2.27 pc to 6254.36 pts, SML CAP index by 2.24 pc to 7170.94 pts, Metal index by 2.03 pc to 14,507.50 pts, Bankex index by 1.75 pc to 9690.49 pts, CG index by 1.70 pc to 12,985.81 pts, CD index by 1.56 pc to 3390.17 pts, OIL & GAS index by 0.80 pc to 9629.82 pts and Power index by 0.54 pc to 2948.35 pts.

However, FMCG index eased modestly by 0.95 per cent to settle at 2764.94 pts and Auto index byu 0.06 pc to 6518.39 pts.

The shares of Jaiprakash Asso today went up by 4.76 per cent at Rs 227.80 to lead the gainers in Group A at the end of the session on the BSE.

Among other scrips that gained were Tata Steel up by 3.08 per cent to Rs 499.70, SBI by 3.06 per cent to Rs 2,204.20, Sterlite Ind by 2.21 per cent to Rs 804.05, L & T by 2.17 per cent to Rs 1,575.70, DLF Ltd by 2.14 per cent to Rs 380.20, HDFC by 1.93 pc to Rs 2,702.50, Sun Pharma by 1.78 pc to Rs 1,404.70, M & M by 1.03 pc to Rs 970.70, Reliance by 0.87 pc to Rs 1,956,75 and HDFC Bank by 0.77 pc to Rs 1,639.95.

Some heavyweight losers included: Tata Power Ltd, down by 3.84 per cent to Rs 1,271.50, Hind Unilever by 2.12 per cent to Rs 273.00,Hero Honda by 1.98 per cent to Rs 1,529.90, ITC ltd by 1.53 per cent to Rs 248.55 and Tata Motors by 1.06 per cent to Rs 569.55.

--UNI

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