Sensex extends rally on broadbased buying

At 11:47 hours IST - the benchmark Sensex maintained upmove and gained more than 200 points on relentless buying in technology, capital goods, metal, auto (barring Hero Honda), healthcare, power and select financial companies\' shares along with heavyweight Reliance Industries.



The Nifty has crossed another psychologically important level - 6100 on consistent inflow of funds from foreign institutional investors (FIIs). They were net buyers to the tune of more than Rs 27,500 crore since September 6, 2010, including Thursday\'s provisional data. On the flip side, HDFC Bank, Hero Honda, Bharti and Ambuja Cements were the only losers.





The upsurge in the Indian markets has created vigour among investors abroad. This, Naresh Kothari, Edelweiss Capital says continues. "The mood is quite upbeat on India and we feel the strong FII flows to India will continue. Most FIIs seem to be very bullish on India any which way, especially the long-only funds, those are the people who have been bringing in a lot of capital."



The 30-share BSE Sensex was trading at 20300, up 231.7 points and the 50-share NSE Nifty was at 6099, up 69 points. The Nifty October futures were trading at 28 points premium.



The broader indices were outperforming the benchmarks; the BSE Midcap and Smallcap indices went up 1.5% each. About 2286 shares advanced while 965 shares declined. Nearly 154 shares were unchanged.



SAIL was the top gainer on Nifty; rallied 6%. Among other metal companies\' shares, Jindal Steel, Tata Steel, Sterlite Industries, Hindalco and Sesa Goa were up 1-2.3%. In oil & gas space, Reliance Industries, Cairn and GAIL gained 1% each; BPCL was up 0.75%.



BHEL from capital goods segment rose 3.3%; L&T was up 1.24% and Siemens up 0.8%. Reliance Infrastructure, Tata Power, Suzlon Energy and Power Grid from power pack moved up 1.5-2.8%; NTPC went up 0.5%.



Auto companies\' shares were in focus ahead of sales numbers for the month of September. Tata Motors surged 3.5%; Bajaj Auto, M&M and Maruti gained 3% each while Hero Honda fell 1%. Maruti Suzuki, a major from the sector, has reported a jump in total sales from 83,306 units to 1,08,000 units including exports of 12,858 units versus 11,712 units on year-on-year (YoY) basis.



TVS Motor sold 1,85,000 vehicles as against 1,70,000 vehicles on month-on-month basis. This includes exports of 19,365 units versus 19,028 units (MoM). Commenting on the numbers, president of marketing at TVS Motor HS Goindi, said the company expects monthly run-rate of two lakh units by the fourth quarter of fiscal year 2011.



Ranbaxy Labs and Dr Reddy\'s Labs from healthcare space were up 2.4-2.8%; Sun Pharma and Cipla moved up 1-1.4%.




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