Techs, Heavies Pilot Upturn

Renewed buying interest in technology stocks and select bluechip counters lifted the Bombay Stock Exchange (BSE) sensex higher on Monday.

The BSE sensex ended above the psychological 3,000 level to settle at 3,007.85, up 31.51 points. A Mumbai-based broker said the drought factor had been overplayed, and had been factored into prices in most cases.

Meanwhile, the broader National Stock Exchange (NSE) S&P CNX Nifty gained 7.90 points to close at 969.85 points. Gainers outnumbered the losers in thin trades.

Most economy-related stocks advanced on the back of improved prospects for the rains and an upbeat economic data. FMCG major Hindustan Lever settled 1.05 per cent higher at Rs 167.95 on renewed buying.

Two-wheeler major Hero Honda Motor advanced 3.18 per cent to settle at Rs 283.80, but off the intraday high of Rs 287.

Auto major Tata Engineering settled 3.32 per cent higher at Rs 130.65 on reports that its July 2002 domestic vehicle sales jumped 50 per cent to 17,608 units, from a year ago.

However, cigarette major ITC closed 1.25 per cent lower at Rs 666.35 on profit-booking, after recent gains.

Meanwhile, Reliance Industries (up 2.67 per cent to Rs 240.75) and Reliance Petroleum (up 1.91 per cent to Rs 21.35) improved on buying support from domestic institutions.

Pharma major Ranbaxy (up 2.35 per cent to Rs 879.60) remained steady after it announced an interim dividend of 50 per cent for the year 2001-02.

However, refinery major Hindustan Petroleum (down 1.47 per cent to Rs 274.45) lost ground on concerns that the company's proposed divestment may be affected on account of the ongoing political controversy over allotment of petrol pump licences.

Among infotech counters, HCL Technologies (up 5.20 per cent to Rs 190.25), Satyam Computer (up 1.90 per cent to Rs 206.10) and Infosys Technologies (up 2 per cent to Rs 3,229) gained ground on selective buying, in anticipation that a possible cut in US interest rates may help the American economy. The US accounts for nearly 60 per cent of the Indian software sector's revenues.