Border Thaw Warms The Cockles

The Bombay Stock Exchange (BSE) sensex finished at a three-week high today on renewed buying support amid hopes that the tension between India and Pakistan will ease further, following the global diplomatic initiatives.

The sensex remained in the positive territory throughout the trading session and wound up with a gain of 61.73 points at 3,279.45, up 1.92 per cent and just off the day's high of 3,283.25.

The National Stock Exchange S&P CNX Nifty also rose to a three-week high, gaining 21.08 points or 2 per cent to close at 1,069.90.

Gainers included software bellwether Infosys Technologies which rose 4.11 per cent to Rs 3376.65, and Reliance Industries which firmed 3.3 per cent to Rs 283.90.

Market analysts said with war clouds receding, investors will begin to focus on more fundamental issues.

The undertone appeared to be cautiously optimistic today. Marketmen said investors were awaiting more information on the Indo-Pak situation before making fresh investments.

"The market looks good. The valuations look attractive at 3200 levels," said Kashyap Mehta, head of equity sales at Moneypore.com.

Today's gain was also partially attributed to the sectoral analysis of the responses to the business outlook survey conducted by the Confederation of Indian Industry (CII).

The analysis bares a sense of optimism in the next six months cutting across all sectors. It shows that a majority of respondents expect the general business situation to improve in the next six months. "This should give further boost to the economy," Mehta added.

Signs of a recovery in the core sector, the benefit of softer interest rates to corporate bottomlines and the government's aggressive privatisation programme, will lift sentiment further, analysts feel.

State-run shares rallied across the board on hopes that the government will begin pursuing its privatisation efforts in earnest.

"Today the market saw widespread movement, mainly account of war tension receding which led to buying interest among investors. market should further move up from here to 3470 level on the up side and on the downside my call is 3100 level in the next one or two weeks," said Jignesh Shah, strategist, ASK-RJ Investment Management.

Tech pivotals such as Satyam Computer was up 4.48 per cent to Rs 236.90, and HCL Technologies was up 2.15 per cent to Rs 226 recovered on renewed buying.

Reliance Petroleum also rose, by 3.05 per cent t o Rs 25.30, while State Bank of India gained 2.85 per cent to Rs 234.75, further contributing to the gain in the sensex.

Ranbaxy was up 6.35 per cent to Rs 827.75. The price of this scrip rose on the reports that the company plans to file applications for permission to market modified generics of two key drugs in the United States soon.

According to the reports, the company plans to file an application to market a syrup form of Bristol-Myers Squibb's anti-diabetes drug Glucophage, and a novel once-a-day form of Johnson & Johnson's ofloxacin antibiotic.

Hinduja group companies also had a good day with Hinduja TMT rising 11.33 per cent to Rs 382.60, IndusInd Bank increasing 11.84 per cent to Rs 17 and Ashok Leyland moving up 7.96 per cent to Rs 112.60.

These scrips gained ground after the Delhi High Court dismissed charges against the Hinduja brothers in the protracted Bofors bribery case.