Sensex ends flat; power, telecom gain, pharma, IT slip
29 Dec 2009
The Nifty continued its upmove for the third consecutive day and closed at new 2009 high of 5187.95. It crossed the psychological 5,200 mark during the day, for the first time since May 2008 but could not close above that level.
Martin Pring, President of Pring.com said 5,200 was an important resistance zone for Nifty. ''A break above 5,200 level, if supported with a global rally, could see Nifty reach 6300 levels.''
Power, telecom, select banking and metal stocks along with heavyweight Reliance Industries witnessed buying interest, which helped the markets to remain on the higher throughout the session. However, selling in pharma and technology stocks along with ONGC & DLF limited the gains to major extent. In midcap and smallcaps, huge buying was seen in railway stocks.
The benchmark indices reopened today after two days of holiday and closed marginally higher. The 30-share Sensex closed at 17,401.56, up 40.95 points, after seeing an intraday high of 17,486.05 and low of 17,372.63. The 50-share NSE Nifty touched an intraday high of 5,214.60, before closing the session at 5,187.95, up 9.55 points.
Power stocks charged up today post the news from Reliance Power, which gained 4.87%. Reliance Infrastructure, Suzlon Energy, NTPC, Power Grid Corp and Neyveli Lignite were up 1.2-2.7%. Reliance Power's first power plant Rosa in Uttar Pradesh of 1,200 megawatt (mw) started operations ahead of schedule. The first unit of 300 mw will up by January, the second unit by 2010 and the entire plant may be operating at full capacity by March 2012. That's not all, the company also hopes to achieve financial closure for its Ultra Mega Power Project (UMPP) in Krishnapatam shortly.
However, pharma stocks were under pressure post NPPA (National Pharmaceutical Pricing Authority) comments. NPPA said top drug companies would pay Rs 2,100 crore for overcharging. In that Cipla alone would pay over Rs 1,500 crore for drug overcharging, says NPPA. Authority recovered Rs 173 crore from drug companies.
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