Date:03/07/2008 URL: http://www.thehindu.com/2008/07/03/stories/2008070353501700.htm

Business

Sensex stages strong rebound

Special Correspondent

Bargain hunting at lower levels lifts indices

MUMBAI: Bargain hunting at lower levels for blue chip companies lifted the stock market indices and the benchmark Bombay Stock Exchange (BSE) 30-share sensitive index (Sensex) regained 702.94 points or 5.42 per cent to 13664.62.

Sensex touched the day’s high of 13712.31 and a low of 12822.75. On the National Stock Exchange (NSE) the 50-share Nifty rose up by 196.60 points to 4093.35, after touching the day’s high of 4107.15 and a low of 3848.25.

The Sensex staged a strong rebound with the benchmark index clocking its biggest intra-day gain since March 25. It had slumped to its lowest level in nearly 15-months in early trading after a strong opening.

Realty stocks led the rally with a gain of 12.22 per cent followed by banking stocks (Bankex) 6.02 per cent, metal 5.96 per cent, capital goods 5.89 per cent, IT 5.77 per cent, power 5.72 per cent, consumer durables 5.52 per cent, tech 5.40 per cent, oil and gas 5.28 per cent, PSU 3.78 per cent and automobile 2.60 per cent. However, FMCG (fast moving consumer goods) closed in the negative territory with a loss of 1.10 per cent.

Broader indices also closed in the positive territory. BSE midcap gained 169.44 points or 3.30 per cent at 5311.30, smallcap 121.69 points or 1.91 per cent at 6506.80 and BSE-500 gained 241.95 points or 4.84 per cent at 5244.79. Selling by foreign institutional investors (FIIs) intensified in the recent months which affected market sentiment. FII outflow in June stood at Rs. 10,095.80 crore and for the calendar year the outflow totalled Rs. 25,692.40 crore till June 30.

Among other Asian markets, Hang Seng fell by 1.8 per cent, Nikkei by 1.31 per cent and Kospi by 2.57 per cent. In the European markets, key indices in the U.K., France and Germany were up between 0.57 per cent and 1.41 per cent.