Sensex ends above 15,000

STOCK REPORT

The benchmark Bombay Stock Exchange (BSE) Sensex marked its sixth consecutive gain and ended above the 15,000 point level for the first time on Monday, as investors bought shares of capital goods companies anticipating better profits and technology stocks registered further gains despite estimates of trimmed earnings this quarter.

The Sensex scaled 81.61 points (0.6 per cent) to 15,045.73 points, while the broad-based S&P CNX Nifty was up 34.55 points (0.8 per cent) to 4,419.40 points. The 50-stock index ended above the 4,400 point level for the first time.

"Even now the inflow of money to the market is quite good. This money is going into few stocks, which investors are finding comfortable. There are certain stocks such as non-Sensex stocks which are still attractive," I V Subramaniam, senior fund manager, Quantum Mutual Fund, said.

Reliance Energy was the top gainer, up 2.04 per cent to Rs 615.50, while L&T followed with gain of 2.17 per cent to Rs 2,415.80. Barti Airtel was the third biggest gainer, moving 1.98 per cent to Rs 883.55. ONGC was up 1.88 per cent to Rs 895.85.

IT heavyweights TCS (up 1.51 per cent), Wipro (up 1.2 per cent) and Infosys (1.1 per cent) registered good gains.

Sensex losers were Hindustan Unilever (2.3 per cent), ICICI Bank (1.13 per cent), Mahindra and Mahindra (1.02 per cent), Grasim Industries (0.47 per cent) and Cipla (0.45 per cent).

The IT stocks have been reeling under fears of lower earnings this quarter following currency appreciation and increased costs. However since Friday, the scrips have marked good recovery and have pushed the index growth significantly, as there is a sentiment that the IT firms' Q1 earnings may not be as lower as per earlier predictions.

Analysts also view that IT companies with stronger pricing power will be able to mitigate the impact of currency appreciation over the next nine months to twelve months.

"All sectors didn't participate in the Sensex rally from 14,000 to 15,000 points. Thus, some sort of a correction in the markets has already happened. The outlook looks much better now. Earnings in export-led sectors should be watched out for," said a fund manager with JM Financial Mutual Fund.

Sandeep Wagle, chief technical analyst, Angel Broking, said, "We maintain the minimum support level for the Sensex at 14,700 point level, while it stands at 4,300 points for the Nifty. The Sensex could touch 15,400-15,500 point level in days to come."

Market breadth showed 1,606 advances against 1,063 declines on BSE, while NSE showed 712 advances versus 413 declines.