Thaindian News

New Delhi, Feb 28 (IANS) Traders at Indian equities markets Monday booked profits, taking advantage of a sharp spike in stocks, which rose smartly after Finance Minister Pranab Mukherjee said in the budget that foreign investment in mutual funds would be allowed and the cap on overseas investment in corporate bonds will be hiked.The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,811.08 points, closed at 17,823.4 points, 122.49 points or 0.69 percent higher from its previous close at 17,700.91 points.

The Sensex had shot up 595 points to an intra-day high of 18,296.53 points.

The announcement of a reduction in surcharge on corporates from 7.5 percent to 5 percent also enthused the markets.

The 50-scrip S&P CNX Nifty of the National Stock Exchange also closed 0.56 percent higher at 5,333.25 points, though it too saw gains being eroded in the second half of the day.

Broader markets also ended higher, with the BSE midcap index closing 0.31 percent higher, and the BSE smallcap index ending 0.36 percent up.

The market breadth was positive, with 1,598 stocks advancing compared to 1,204 scrips on the decline. A total of 131 stocks remained unchanged.

Among the gainers on the 30-scrip Sensex were: ITC, up 8.23 percent at Rs.169; M&M, up 3.19 percent at Rs.614.10; Maruti Suzuki, up 3.07 percent at Rs.1,206.70 and ONGC, up 2.93 percent at Rs.270.65.

Losers on the benchmark index included Reliance Infra, down 4.46 percent at Rs.609.55; Jaiprakash Associates, down 2.88 percent at Rs.77.50; Hero Honda, down 2.36 percent Rs.1,464.95 and Tata Motors, down 2.11 percent at Rs.1,081.80.

According to data available with market regulator SEBI, foreign institutional investors sold scrips worth $116.68 million Monday.

Asian markets too ended in the green, making up for some of last week’s losses as energy stocks made hay in the wake of rising prices of crude.

Hong Kong’s Hang Seng closed 1.42 percent up at 23,338.02 points, while the Japanese Nikkei rose 0.92 percent to close at 10,624.09 points.

Chinese markets too ended in the positive, with a benchmark index, the Shanghai Composite index, moving up 0.92 percent at 2,905.05 points.

A bloody revolt against Libyan leader Muammar Gaddafi has reduced crude output in the country — Africa’s third largest oil producer — and spread concerns that supplies may be hit if similar tensions in other middle eastern countries spike.

The result has been oil prices shooting up to highs not seen in recent past.

Stocks markets were mixed in the Euro zone with gains seen in a few markets amid concerns on the conflicts in Libya and the middle east.

Around mid-day, the French CAC 40 was trading 0.41 percent up at 4,087.19 points, while Britain’s FTSE was ruling 0.18 percent lower at 5,990.3 points.

The German DAX was ruling 0.71 percent up at 7,236.48 points.