How Market Fared

Rally likely to continue

The markets recorded second consecutive day of gains as bulls were on a rampage. Firm global markets and India's Inflation rate which was at 6.11% in week ended January 20, 2007 against expectation of 6.08% aided the key indices to cross the 14400 level for the first time. The US Federal Reserves decision to keep interest rates steady also acted as a positive trigger boosting the sentiments at home. The Telecom and the Capital Good stocks led from the front. Heavy weight Bharti Airtel and Reliance Communication led the rally and Capital Good were led by L&T and Siemens, however the Bank and Oil & Gas stocks suffered losses as profit booking dragged them down.

Finally the benchmark Sensex closed at an all time high of 14403 gaining 136 points and NSE Nifty added 46 points to close at 4183.

Tata Steel, after getting battered following the Corus deal was back in action as the scrip advanced 2.5% to Rs468. The Company has announced their plans for raising fund for Corus by Month End. The scrip has touched an intra-day high of Rs483 and a low of Rs459 and has recorded volumes of over 81,00,000 shares on NSE.

Tata Chemicals advanced 3.7% to Rs237 after the company announced that they would form 50:50 Joint Venture with Total Produce Plc. The scrip touched an intra-day high of Rs239 and a low of Rs232 and recorded volumes of over 1,00,000 shares on NSE.

Capital Good stocks were the top gainer. L&T advanced nearly by 5% to Rs1680, Gammon India rallied by over 8% to Rs420, Crompton Greaves rose over 4.5% to Rs208 and Punj Lloyd was up 1% to Rs1028.

Telecom stocks were in the limelight. Bharti Airtel surged over 5% to Rs770, Reliance Communication gained 3.4% to Rs490 and VSNL was up 6% to Rs505.

The BSE Pharma index surged 0.92%. Lupin, Cipla, Orchid Chemicals, Wockhardt and Cadila were among the major gainers.

Cement stocks are also in momentum on back of fresh buying. Gujarat Ambuja was up by 2.5% to Rs142 after the company’s quarterly net sales reported 72% growth at 13.29bn and profit at Rs3.38bn (up 288%), ACC has gained by 0.6% to Rs1040, Grasim advanced 1.3% toRs2811 and Mangalam Cement rose 0.5% to Rs225.