Nifty ends above 5000 led by metals, IT; up 9 per cent in 6 sessions
11 Nov 2009
The Nifty continued its pullback rally after a day of consolidation. It closed above the 5,000 mark for the first time in 14 sessions. Buying interest across sectors, positive global cues, beginning of the government's divestment programme and unveiling of first discussion paper on GST regime helped the Sensex and Nifty to rally over 400 and 100 points respectively. Benchmark indices have gained more than 9% in the last six sessions.
Today's rally comes ahead of tomorrow's Index of Industrial Production (IIP) data. CNBC-TV18 sees IIP for the month of September at 7.14% versus 10.4% on month-on-month basis and 6% on year-on-year basis.
All the BSE sectoral indices ended in the red. The BSE Metal and IT indices gained 4% each, while other sectoral indices rallied around 2% each, barring FMCG which rose 0.55%.
Heavyweight Reliance Industries surged over 3% as India's petro-chemical giant is actively scouting to acquire more than one overseas company, sources said. It is learnt to be readying a war chest over USD 25 billion for overseas buys.
The Power Ministry's nod to REC's follow-on public offer saw the BSE PSU index ending 2% higher. Rural Electrification Corporation plans to issue 171,732,000 equity shares of Rs 10 each, constituting 20% of its paid-up capital. REC gained 5.5% on huge volumes. NMDC is probably the next company to be put on the block. Its shares gained 6.5% today and over 35% in last three days.
Among the others, Neyveli Lignite and Hindustan Copper surged over 14%. RCF rose 4%; the company official said would develop 2 lakh sq ft commercial realty in Mumbai and would sell 2.5% stake before March and additional 10% later. The company is also going to spin off mega Thal unit into 100% subsidiary and this unit would raise Rs 400 crore via QIP post spin-off.
