Realty and information technology stocks hog limelight

Market breadth turns strong

Hective buying in small, mid-cap shares

MUMBAI: A sudden surge in Asian markets enlivened the domestic bourses on Monday with the Bombay Stock Exchange benchmark Sensex surging by over 417 points to close at 18660.32 on strong buying support in blue chips Reliance Communications and DLF.

Marketmen also ascribed the impressive surge partly to expectations of increase in liquidity as investors have started investing the refund money from Reliance Power IPO, which had received unprecedented response, back into the stock markets. Major Asian indices closed up by about 2-8 per cent, sparking off across-the-board buying support at home.

The 30-share BSE barometer settled at a two-week high of 18660.32, a gain of 417.74 points, or 2.29 per cent, from last Friday’s close of 18242.58, extending the gains for the second session on Monday.

The Sensex moved in a range of 18895.34 and 18439.33 after resuming sharply up at 18496.03.

The 50-share S&P CNX Nifty of the National Stock Exchange rose by 146 points to close at 5463.50 against 5317.25.

The market breadth too turned strong with majority of shares from all segments registering smart gains.

Reliance Communications jumped by 12 per cent, while the realty firm DLF rose by 8.5 per cent. IT majors Wipro and TCS also figured among the top gainers with their shares increasing by 6 per cent and 5 per cent, respectively. Public sector NTPC was up by 4.3 per cent.

Satyam Computer was up 4 per cent, followed by banking major SBI 3.93 per cent, Tata Steel 3.39 per cent, Infosys Technologies 3.24 per cent and Reliance 2 per cent.

The small-cap and mid-cap shares also attracted hectic buying interest throughout and their indices closed up 2.87 per cent and 3.14 per cent respectively at close. The market closed above the key resistance of 5400 for the Nifty, raising hopes that stocks will witness a strong rally, according to technical analysts.

Realty and IT stocks hogged the limelight, pushing up the respective indices by 6.53 per cent and 4.15 per cent, respectively.

The trading volume was relatively high at Rs. 5,764.15 crore against Rs. 5,578.82 crore. The broad-based BSE-100 index improved further by 256.01 points to 9940.51 from 9684.50.

The BSE-200 and the Dollex-200 were quoted sharply up at 2343.79 and 989.39 against 2280.37 and 965.07, respectively. The BSE-500 flared up by 202.79 points to 7505.14 from 7302.35. — PTI