Sensex gains 255 pts as Railway budget peps up market

Mumbai, July 3 (PTI) After a few days of dull trading,
the stock market spiralled up Friday following the Railway
Budget, with the benchmark Sensex soaring by 255 points on
heavy buying by foreign funds and partial recovery in global
stocks.

The market welcomed the initiatives in the Railway Budget
including plans to improve infrastructure.

Leading foreign institutional investor and mutual fund
HSBC reportedly bought aggressively in the last one hour of
trading, leading to a sharp surge in the market.

Touching a low of 14,499.74, the Bombay Stock Exchange
30-share barometer later bounced back with a vengeance and
ended the day at 14,913.05, a net gain of 254.56 points or
1.74 per cent over its previous close.

Market sentiment was boosted by intra-trade recovery in
Asian and European stocks. Disappointing US jobs data weighed
on the global stocks at the outset.

Despite a populist budget with steady freight rates and
passenger fares, rail-related stocks pared early gains as
investors booked profits in these shares.

SMC Global Vice President Rajesh Jain said, "The railway
Budget was better than expected and investors expecting for a
better Union Budget on Monday."

FIIs have been net buyers, albeit in moderate quantity,
in equity this week and bought shares worth Rs 1,864.60 crore
between June 29 and July 3.

The broader 50-share Nifty of the National Stock Exchange
(NSE) spurted 75.40 points or 1.73 per cent to close at
4,424.25 from its last close.

Bank stocks attracted brisk activity, pushing up the BSE
Bankex by 2.19 per cent on expectations of major reforms in
the financial sector.

In the Sensex pack, HDFC jumped by 7.74 per cent, Tata
Steel by 4.32 per cent, Mah & Mah by 3.59 per cent, Rel Infra
by 3.17 per cent, ICICI Bank by 3.05 per cent, Jaiprakash
Associates by 3.03 per cent, SBI by 2.94 per cent, L&T by 2.82
per cent, NTPC by 2.25 per cent and Tata Motors by 2.11 per
cent.

However, Hero Honda fell by 1.08 per cent, Hindalco by
0.95 per cent and Sterlite by 0.74 per cent.

The market breadth was positive with 1,341 gainers
against 1,263 losers on the Bombay Stock Exchange (BSE). PTI
JCG
RAI
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