Sensex Gains 0.1%

Ivaylo
15 Mar, 2001
New York City

The Sensex opened with a positive bias and surged until early afternoon following strong global markets in a highly volatile trade. Heavy selling at higher level made the index pare gains but it still managed to finish in positive territory. Dr Reddy

[R]8:00AM NY-7:00PM Mumbai Sensex closes marginally higher on global market recovery.[/R]
The Sensex on BSE finished 14.23 points, or 0.11%, higher at 12,543.85. The market-breadth was positive as there were three advancers for every two decliners. For 1,474 stocks that advanced on BSE, 1,090 declined and 73 remained unchanged. Of the 30 stocks in the Sensex, 13 advanced and 17 declined. The turnover on BSE was Rs 3,834.63 crore, compared with Rs 4,284 crore on Wednesday. The turnover on NSE was Rs 7,776.71 crore, higher than Rs 8,670.09 crore onWednesday.

Economic and corporate news

Insurance companies are likely to have more flexibility investing in corporate bonds and mortgage-based securities as the Insurance Regulatory and Development Authority may issue guidelines by the end of the month. Insurance companies will be able to invest in all highly rated, or minimum AA+, corporate issuances. Mortgage-based securities will now be categorised as approved investment.

Vodafone of the UK and its Indian partner Essar today announced they would be working to become the largest mobile operator in India, and seek opportunities in the telecom space in the Middle-East.

Trading highlights

MindTree was the most-active stock with a turnover of Rs 570.50 crore followed by Reliance Industries and Idea.

Advancers

Dr.Reddy led the advancers, surging 4.4% to Rs 675. The company has withdrawn from the race to acquire the generic drugs unit of Merck. Other gainers included ITC and Infosys advancing 3% each to Rs 147 and Rs 2,078, respectively. ITC rallied on reports that its food unit is likely to bid for Patak, UK, which stands at about 200 million pounds, or $387 million. Hindalco was up 2.1% to Rs 131 and TCS gained 1.9% to Rs 1,236. NTPC added 1.2% at Rs 141.

Decliners

SBI led the decliners, down 2.7% to Rs 922, on 7.70 lakh shares. HDFC and Tata Motors dropped over 2.5% each to Rs 1,514 and Rs 726, respectively. Other decliners included HDFC Bank, Bajaj Auto and Cipla shedding around 1.5% each to Rs 918, Rs 2,491 and Rs 227, respectively. BHEL was down 1.1% to Rs 2,007 and ICICI Bank lost 0.9% to Rs 822.

Reliance Industries declined 0.1% to Rs 1,285.1, on 11.45 lakh shares. Reportedly, Reliance is looking at buying a stake in Carrefour of France, the second-largest retailer after Wal-Mart. This would promote the largest private sector group in India to the ranks of the world top retailers. Reliance was looking at the possibility of buying the 13% stake held by the Halley family, Carrefour largest shareholder, although talks have not yet started.