Sensex closes above 9900 and Nifty above 3000 for the first time
31 January 2006
The indices started the day on a positive note, though the early gains were not substantial. By mid-morning, the Sensex went past the 9900 mark comfortably and the Nifty was trading above 3000.
Both indices declined as selling pressure emerged at higher levels and retreated to their opening levels by noon. Strong results from companies like BHEL and M&M led to a rally in capital goods and auto stocks which helped the indices to re-test the highs of the day.
The Nifty touched a new all-time intra-day high of 3005 today. The Sensex went as high as 9940, very close to its intra-day lifetime high of 9945.
Nalco was the best performer among index stocks, closing more than 7.5 per cent higher. Hindalco added more than 2.5 per cent.
BHEL held strong throughout the session on strong results and closed with gains of over 5.5 per cent. L&T gained over 3 per cent.
Zee Tele added close to 4 per cent despite a drop in quarterly profits announced today.
M&M was the other stock which rallied on good quarterly numbers. The stock closed with gains of close to 4 per cent. Tata Motors added nearly 3 per cent.
VSNL, HDFC Bank and Sun Pharma were the other major gainers among index stocks.
Gujarat Ambuja Cements was the biggest loser among index stocks, losing more than 2 per cent. Evidently, the markets are not impressed by the open offer price announced by Holcim.
SAIL, BPCL and Tata Tea were among the other major losers in large caps.
The Sensex closed at 9920, a gain of 71 points, and the Nifty at 3001, higher by 26 points. Nifty February futures closed at a premium of 4 points to the spot index.
US indices closed flat yesterday as traders are waiting for the interest rate announcement from US Fed later today. Oil stocks gained after record results from Exxon Mobil and the continuing rally in crude oil prices.
The Dow index closed with marginal losses while the S&P 500 and NASDAQ indices closed with gains of one-tenth of a per cent each.
Crude oil gained more than a per cent on expectations that OPEC would cut production in March. Ministers from OPEC countries are due to meet later today. March futures on the NYMEX closed at $68.35 per barrel yesterday. The commodity is trading marginally higher in early European trades today.
BHEL has reported excellent quarterly results, with profits growing as much as 78 per cent as compared to the previous year quarter.
December quarter net profits were at Rs423.19 crore as compared to a profit of Rs237.4 crore for the prior year quarter. Total revenues for the quarter increased to Rs3,445.45 crore from Rs2,386.47 crore.
Mahindra & Mahindra has reported a net profit of Rs233.46 crore for the December quarter, including a one-time income of Rs42 crore from the transfer of its LCV division to a JV, as compared to a profit of Rs133.19 crore for the prior year quarter. Total revenues for the quarter increased to Rs2,247.46 crore from Rs1,794.52 crore during the same quarter of previous year.
TCS has said that it would set up a new development centre in Gujarat for government and utility sector clients. The centre would be set up in three phases and the first phase would accommodate around 2,000 employees.
Neyveli Lignite has reported a net profit of Rs137 crore for the December quarter as compared to a profit of Rs237 crore for the prior year quarter. Total revenues for the quarter decreased to Rs688 crore from Rs776 crore during the same quarter of prior year.
Asian Paints has reported a consolidated net profit of Rs62.63 crore for the December quarter as compared to a profit of Rs56.03 crore for the prior year quarter. Total revenues for the quarter increased to Rs826.16 crore from Rs748.37 crore during the same quarter of previous year.
Zee Tele has reported a consolidated net profit of Rs31.03 crore for the December quarter as compared to a profit of Rs86.55 crore for the prior year quarter. Total revenues for the quarter increased to Rs403.06 crore from Rs339.81 crore during the same quarter of previous year.
