Date:23/06/2006 URL: http://www.thehindubusinessline.com/2006/06/23/stories/2006062303270100.htm

Back Sensex continues upward trend

Our Bureau

Mumbai , June 22

The domestic indices gained for the second consecutive session taking cues from strong international markets and buying from domestic investors as well as foreign funds.

The BSE-30 Sensex closed up 235.74 points at 10,275.88. S&P CNX Nifty ended up 71.3 points at 2994.75. All the indices rose with the BSE Bankex being the biggest gainer.

Top gainers were HDFC (up 9.83 per cent), L&T (up 8.29 per cent) and Hindalco (up 4.93 per cent). Stocks of IT companies, cement and steel looked attractive, dealers said.

Dr Reddy's was the biggest loser falling by 6.23 per cent.

The Government's announcement of a stake sale of 10 per cent in Nalco and Nevyeli Lignite drove their shares up.

Rupee falls

The rupee slumped against the dollar to end below the 46-mark at 46.13 on heavy demand for dollars from corporates.

Bond prices fell on fears of increasing inflation and hardening of interest rates. The yields on the benchmark 7.59 per cent 10-year paper crossed 8 per cent.

"For the short term, the markets look good and correction may come in depending upon the last day of F&O trading and Fed rate hike next week,'' said Ms Shahina Mukadam, Head Research, IDBI Capital Markets Service Ltd.