The Hindu : Smart rally in cement, PSE stocks

Online edition of India's National Newspaper
Friday, May 10, 2002

Business

Business

Smart rally in cement, PSE stocks

MUMBAI MAY 9. Cement and PSE stocks rallied smartly scoring impressive gains and aiding the Sensex to stretch its winning streak to seventh straight session on the Bombay Stock Exchange today on sustained purchases by speculators as well as foreign institutional investors. IT counters, however, witnessed pressure at higher levels and shed part of early gains due to selling by domestic funds reportedly led by Unit Trust of India.

The BSE benchmark 30-share index opened remarkably up at 3458.31 and later surged up to the day's high at 3478.02 before ending at 3462.01 against yesterday's close of 3435.06, netting a rise of 26.95 points.

The broad-based BSE-100 index also forged ahead by 16.64 points to 1729.13.

Attributing continual upsurge in cement shares to the industry's double digit growth last month, market sources said select PSE stocks also were in keen demand following strong optimism about higher bidding of about Rs. 200 for IPCL share which earlier was expected to around Rs. 160 per share.

Initially, the market had responded positively to a strong turnaround in New York stocks which lifted the Nasdaq Composite Index by 122 points and the Dow Jones Industrial Average by 305 points yesterday. Later, local funds booked profits in frontline IT stocks at higher levels.

FIIs reportedly made good purchases in PSE stocks such as IPCL, HPCL, BEL, BPCL and MTNL as well as cement shares.

In the specified group, 73 including 19 index-based counters registered sharp to moderate gains while 95 others finished with losses.

— PTI

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