Reliance, Hindalco lift indices to record close

On the back of strong global cues and surge in metal and capital goods shares, the Sensex and Nifty set record closing highs on Friday. But small-cap and mid-cap stocks were pressured as traders booked profits at higher levels.

The Bombay Stock Exchange's Sensex ended 181 points or 1.2% higher at 15273. It touched a high of 15330.73 and low of 15216.83 intra day.

National Stock Exchange's Nifty closed up 59 points or 1.31% at 4504, making a high of 4514 and low of 4446 earlier in the day.

But the market breadth was negative, with 1,534 declines against 1,148 advances on BSE and 636 losers versus 489 gainers on NSE.

Biggest Sensex gainers were Hindalco Industries (up 6%), Tata Motors (3.8%), Tata Steel (3.35%), Reliance Industries (3%) and Satyam Computer (2.8%).

Index losers comprised Tata Consultancy Services (down 2.1%), Dr Reddy's Laboratories (2.03%), Hindustan Unilever (2.5%), Ranbaxy Laboratories (1.48%) and Reliance Communications (1.41%).

Metal shares were in the limelight on ArcelorMittal entering into an agreement with Nippon Steel Corp for a global strategic alliance and expansion of current joint business ventures in North America. Also, Rio Tinto Group has agreed to buy Alcan for $38.1 billion, trumping a hostile bid by Alcoa to form the world's biggest aluminum maker.

BSE Metal Index gained nearly 5% to 12,032. Hindalco rose 6% to Rs 174.45, Sterlite Industries gained 3.25% to Rs 663, Steel Authority of India surged 9.73% to Rs 158.50 and Tata Steel added 3.83% to Rs 698.

After the recent run-up in the real estate space, investors chose to book profits, pulling the BSE realty index down 1.31% to 7778. DLF shed 1.65% to Rs 600, Parsvnath Developers lost 3.7% to Rs 378 and Sobha Developers fell 2% to Rs 931.

Oil and gas shares were riding on the gains in Reliance Industries, which added nearly 3%. Intra-day, the scrip hit a life-time high of Rs 1,790 versus the previous high of Rs 1,785. ONGC was also up nearly 1% to Rs 900, IOC gained 0.6% to Rs 434 and GAIL India rose 1.22% to Rs 319.

CMC slumped 11% to Rs 1,299 despite the company posting nearly 48% rise in net profit to Rs 22.12 crore for the quarter ended June 30, 2007 compared with Rs 14.95 crore in the same period previous year. Total income decreased to Rs 216.89 crore during the June quarter from Rs 232.35 crore a year ago.