Date:09/09/2006 URL: http://www.thehindu.com/2006/09/09/stories/2006090905411500.htm

Business

Sensex, Nifty stage recovery

MUMBAI: The key indices, the Bombay Stock Exchange benchmark Sensex and the Nifty on Friday reversed the trend on the back of firm Asian advices and easing global crude oil prices amid heavy FII pull out.

The Sensex closed the day 64.80 points up at 11918.65 against Thursday's close of 11853.85 after moving in a range of 11940.58 and 11825.22. Similarly, the National Stock Exchange's S&P CNX Nifty closed higher at 3471.45, up 16.90 points. Bulls as well as retailers were believed to be fairly heavy buyers in frontline stocks despite FII pull out even as emerging markets elsewhere witnessed a firm trend.

Foreign institutional investors (FIIs) reported net sales of about Rs. 1,005 crore in the derivatives on September 7. As per provisional numbers, they also made withdrawals of Rs. 89 crore in the Cash segment on the same day. Trading volume witnessed day-to-day rise on increased participation by operators and retail investors in the last three days, brokers said.

Automobile shares were in the limelight on reports that the Indian automobile sector was all set for major expansion programmes. While Maruti Udyog has planned a fresh investment of Rs. 3,000 crore, Honda Siel is likely to invest Rs. 900 crore to make a debut in the small car segment.Reflecting the rally in automobile counters, the BSE-Auto index flared up by 61.63 points to 5207.02.

Gains outnumbered losses by 1,563 to 980.

PTI