Indices resume rally after yesterday''s correction

31 May 2005

Markets opened almost flat in the morning in the absence of any global cues. The indices slipped marginally into the red in early trades as traders remained sceptical after yesterday's correction.

Buying emerged much before noon and the markets set on an up-trend which lasted for the rest of the day. The indices were supported by strength in all IT frontline stocks and select others like Mahindra and ITC.

Sensex closed at 6715, up 51 points and the Nifty at 2088, up 15 points. Nifty June futures discount to the spot index narrowed to 24 points from yesterday's 29 points.

Among Nifty stocks, M&M, Reliance Energy and ITC were the major percentage gainers while Hero Honda, Tata Chemicals and BPCL were the major losers.

US Markets were closed yesterday and will open for trade today after the long weekend.

Reliance Energy was one of the best performers among frontline stocks. There are reports that the company is planning to set up a massive 12,000 MW thermal power plant in Orissa. The stock closed with gains of over 3 per cent.