Heavyweights Score On Fresh Buys

Renewed buying interest in heavyweights lifted the Bombay Stock Exchange (BSE) higher on Tuesday in a trading session, which was extended by an hour and forty-five minutes.

The BSE sensex gained 28.55 points to settle at 3,036.40, its highest close since July 25. In the last three trading sessions, the sensex has risen by about three per cent.

On the National Stock Exchange (NSE), the S&P CNX Nifty index closed 5.14 points higher at 974.95.

Select old economy stocks lead the uptrend on hopes that the economy would recover from the effects of a drought after the recent revival in the monsoon.

Weather officials said several northern states in the country received heavy showers late on Monday, bringing an end to the long dry period, and improving prospects for old-economy companies.

FMCG major Hindustan Lever gained 3.27 per cent to close at Rs 173.45, while Tata Engineering settled 2.03 per cent higher at Rs 133.30, as its July 2002 domestic vehicle sales jumped 50 per cent to 17,608 units from a year ago.

Mahindra & Mahindra advanced 1.22 per cent to Rs 91.05 on revival of monsoons in the country. Among other heavyweights, cigarette heavyweight ITC settled 1.70 per cent higher at Rs 676.65 on renewed buying interest from institutional investors.

Reliance Petroleum (up 0.70 per cent to Rs 21.50) and Reliance Industries (up 0.64 per cent to Rs 362.25) remained firm on institutional support.

However, refinery major Hindustan Petroleum slipped 0.31 per cent to Rs 273.60 on concerns that the company's proposed divestment may be affected on account of the on-going political controversy over the allotment of petrol pump licences.

Meanwhile, Vysya Bank (up 2.31 per cent at Rs 269.85) remained most volatile. The stock recovered from the day's low of Rs 258 to Rs 288 after a couple of large block deals were reported on the counter.

On the other hand, technology stocks witnessed a mixed trend. Satyam Computer advanced 2.91 per cent to Rs 212.10 on rumours that global private equity fund Warburg Pincus plans to pick up another 5 per cent in the company.

HCL Technologies was down 2 per cent to Rs 186.15 on selling pressure after Monday's gains. However, Mastek advanced 3.25 per cent to Rs 375 on selective buying ahead of the announcement of dividend for the year 2002.