The market remained firm in early-afternoon trades on good buying support, especially for frontline stocks, even after the start of a US-Iraq war.
While tech stocks led the gains, Old Economy and defensive sector stocks also contributed significantly to the market rally. Buying was also observed on side counters. Institutions as well as speculators were active in several stocks.
Players, however, attribute the gains in the market to the fall in global crude oil prices. Also, international stock markets have not taken the news of war on a negative note on the premise that it could herald the end of a protracted period of economic and financial uncertainty. The belief is that an uncomplicated military campaign will unseat Iraqi President Saddam Hussein within weeks, entail minimum civilian and military casualties, and retain a framework for global political stability.
At 13:05 IST, the BSE Sensex was up by 47.85 points at 3,169.03.
The NSE S & P CNX Nifty Index was up by 14.55 points at 1,018.45.
Tech pivotals like Satyam Computer (up 4.48% to Rs 203), Infosys Technologies (up 2.31% to Rs 4,287) and HCL Technologies (up 2.18% to Rs 157.10) remained firm on sustained buying support amid hopes of the war coming to an end soon.
Ranbaxy (up 4.22% to Rs 608) gained further ground on sustained buying support, with over 1.60 lakh shares traded on the BSE.
Hero Honda (up 3.19% to Rs 223.50) advanced further on buying support. Birla Mutual Fund was said to be active on the counter. The company's technical and equity partner, Honda Motor said late last week that it will renew a pact to supply technology to its Indian joint venture partner for 10 years, when the current agreement expires in 2004.
L & T (up 1.84% to Rs 190.65) held on to its gain on sustained buying support after the company said it has bagged a Rs 1,242-crore single turnkey contract from IOC for building a PTA plant at Panipat unit in Haryana.
Other Old Economy pivotals like Bhel (up 4.25% to Rs 217), Bajaj Auto (up 2.26% to Rs 495), Tisco (up 2.25% to Rs 138.80), ACC (up 2.15% to Rs 135.50), Telco (up 1.67% to Rs 155.55), ICICI Bank (up 1.17% to Rs 138.80) and Grasim (up 0.22% to Rs 337.65) also held on to their gains on sustained buying support.
Heavyweights like State Bank of India (up 2% to Rs 280.55), Reliance Industries (up 1.61% to Rs 289.85), Hindustan Lever (up 1.49% to Rs 160) and ITC (up 0.12% to Rs 629.10) also contributed to the gains in the Sensex.
BSES (down 1.40% to Rs 218.05) and HDFC (down 0.97% to Rs 352.50) remained subdued on selling pressure after Wednesday's gains.
Other pivotals like Colgate Palmolive (down 0.76% to Rs 124.75), Nestle India (down 0.33% to Rs 531), Hindalco (down 0.20% to Rs 553), Cipla (down 0.19% to Rs 735) and Castrol India (down 0.16% to Rs 190.25) were also in the red.
Polaris Software (up 5.90% to Rs 127.40) remained firm on sustained buying support amid rumours that the company has bagged a new order. Close to 10.50 lakh Polaris shares were traded on the BSE.
Other non-Sensex frontline tech stocks like Hughes Software (up 1.46% to Rs 177.85), Digital GlobalSoft (up 1.35% to Rs 631.85), i-flex Solutions (up 0.84% to Rs 874), Wipro (up 0.67% to Rs 1,345.05), NIIT (up 0.51% to Rs 108.25) and Mascot Systems (up 0.44% to Rs 103) were also in the positive territory.
BPCL (up 2.29% to Rs 221) gained further ground on sustained buying support following reports that the disinvestment ministry has invited bids to appoint merchant bankers for the company's disinvestment. Easing global crude oil prices also helped the stock to certain extent. Over 2.13 lakh BPCL shares traded on the BSE.
Other PSU stocks like Bharat Electronics (up 2.71% to Rs 193), Shipping Corporation of India (up 2.04% to Rs 55.05), Engineers India (up 1.80% to Rs 251), Dredging Corporation (up 1.73% to Rs 229), Steel Authority of India (up 2.16% to Rs 9.45), Bharat Earth Movers (up 1.57% to Rs 61.45), Neyveli Lignite (up 0.77% to Rs 26.10), Nalco (up 0.31% to Rs 79.80) and Gas Authority of India (up 0.34% to Rs 74.55) also gained ground.
ONGC (down 1.83% to Rs 335) eased on selling pressure after the international crude oil prices slipped. Close to 20,000 ONGC shares were traded on the BSE.
FACT (down 1.99% to Rs 22.15), IBP (down 0.46% to Rs 194.15), Indian Oil (down 0.43% to Rs 229), Balmer Lawrie (down 0.41% to Rs 72.05) and Container Corporation (down 0.14% to Rs 215.05) were also in the red.
Steel scrips like Jindal Iron (up 6.18% to Rs 83.40), Jindal Strips (up 2.7% to Rs 26.50), Jindal Vijaynagar Steel (up 2.47% to Rs 4.15), Essar Steel (up 2.11% to Rs 7.25), Saw Pipes (up 1.38% to Rs 65.90) and Jindal Steel (up 1.07% to Rs 341) advanced further on sustained buying support.
Buying was seen on side counters like Alstom Power (up 6.35% to Rs 52.75), Titan Industries (up 5.93% to Rs 55.40), ABB (up 4.95% to Rs 302.90), Apollo Tyres (up 3.43% to Rs 119.20), SKF Bearings (up 3.72% to Rs 43.20), Birla 3M (up 3.18% to Rs 257.95), United Phosphorous (up 3.03% to Rs 130.75), BPL (up 2.82% to Rs 29.20), Asahi India Glass (up 2.82% to Rs 36.50) and Bayer ABS (up 2.48% to Rs 66).
On the other hand, Tide Water Oil (down 7% to Rs 1,037), Gammon India (down 3.80% to Rs 96.20), Aban Loyd Chiles (down 3.66% to Rs 131.50), Ciba Specialty Chemicals (down 3.60% to Rs 103.15), Widia India (down 2.97% to Rs 62.10), HBL Nife Power (down 2.83% to Rs 36), KSB Pumps (down 2.77% to Rs 61.50), Mahavir Spinning (down 2.60% to Rs 58.05) and Jindal Drilling (down 2.59% to Rs 144.65) declined on selling pressure.
Source: Capital Market