Sensex breaches 6300 on broad rally

Sensex breaches 6300 on broad rally

Thursday, December 2, 2004 (Mumbai):

Stock markets today made a strong start with the benchmark Sensex touching the 6300 level for the first time.

The 30-share bluechip Sensex opened 48 points higher at 6275. It touched a high of 6301 on the back of a broad rally.

In the broader markets, the Nifty was trading almost a per cent higher around the 1980 mark.

Oil, banks lead charge

Oil and gas counters were leading the market rally after crude prices slid by more than $3.50 a barrel to $45.49 on Wednesday - the biggest drop since September 2001.

Oil marketing companies HPCL and BPCL had shot up by over 5.5 per cent each. IOC was up 3.5 per cent.

Banking stocks were seeing strong trades. India's largest bank SBI was up over 3.5 per cent. Bank of Baroda was up 2.5 per cent.

Among the prominent gainers, Bharti Televentures was up 3 per cent. Larsen & Toubro had gained 5.6 per cent.

Autos firm

Auto stocks were seeing a firm trend. Tata Motors was up over 3 per cent. Maruti moved up by over 2 per cent. Hero Honda was up a per cent.

Only two stocks in the Sensex – HLL and ITC in the FMCG segment – were trading lower.

Analysts feel it's not the right time for retail investors to move into the stock markets. The current rally has been driven by FII interest in Indian stocks.

"It's a strange territory for the markets. Sensex has never been above 6250 level. It will take some time to adjust. But I believe the trend is very strong and we will cross these levels convincingly," said K Ramachandran, head-advisory desk, BNP Paribas.

Positive cues

Markets rose on the back of positive global cues. US stocks surged on the back of healthy manufacturing and consumer data for November.

Technology bellwether Nasdaq was at its 11-month high at 2,138 after moving up by 41 points. The bluechip Dow Jones was up 162 points to close at 10,590.

Asian markets were firm while gold prices had surged to a new 16-year-high of $458 an ounce.

news from ndtv.com

(With PTI inputs)