It was bulls day out on Dalal Street. Tech stocks lifted the 30-share BSE Sensitive Index over two per cent today after Infosys surprised the market with a liberal bonus, a huge special dividend and an encouraging future guidance. Old economy blue chips also rose on hopes of improved quarterly results.The benchmark BSE Sensex eventually ended with a massive gain of 120.73 points, or 2.09%, at 5,904.52, its best close since March 9, 2004. Interestingly, the benchmark index had shed 54.66 points on Monday on tech-led selling pressure. The NSE S&P CNX Nifty Index gained 40.25 points to end at 1,878.45. The market traded firm for most part of the session after early volatility. Infosys Technologies influenced trading on the bourses with a liberal bonus issue, an one-time special dividend and an encouraging future guidance for FY 2003-04, even as the company’s fourth quarter results fell below expectations.Said stock dealer R.A. Podar: ‘‘While tech stocks led the recovery, old economy — cement, automobile and metal — stocks also gained ground after early weakness on hopes of improved quarterly results on the back of strong economic growth.’’ Heavyweights Reliance Industries, State Bank of India, ITC and Hindustan Lever also contributed to the gains of the Sensex.With today’s gain, the Sensex has risen 579.94 points, or 10.88%, from its recent low of 5,324.78 touched on March 23, 2004. Prior to the recovery, the Sensex had declined 626.25 points, or 10.52% from its recent high of 5,951.03 touched on March 8, 2004. Infosys Technologies (up 6.82% to Rs 5,490.20) ended off its day’s high of Rs 6,000 — touched in a freak deal in early trades — on selling at higher levels after the company’s quarterly results turned out lower-than-expected. What helped the stock higher was the announcement of a liberal 3:1 (three shares for one) bonus issue and a one-time special dividend of Rs 100 per share. A liberal bonus issue reflects the company’s confidence to service an expanded capital base even amid the appreciating rupee and the outsourcing backlash.
