Sensex rises by 47 points, Infy up 0.7 per cent

After remaining mute for a couple of months, frontline old-economy stocks bounced back on Monday to push the BSE 30-share Sensex to a seven-...

After remaining mute for a couple of months, frontline old-economy stocks bounced back on Monday to push the BSE 30-share Sensex to a seven- week high. On The Stock Exchange, Mumbai (BSE), the Sensex gained 46.86 points to close at 3,096.70 points, while the S&P CNX Nifty rallied 14.55 points to close at 967.90 points.

The gains were led by Sensex heavyweights Reliance Industries and Hindustan Lever. Along with these stocks, the stocks of public sector undertakings (PSUs) also notched gains on hopes of disinvestment. The unabated rally in banking and auto-ancillary stocks continued on sustained buying from mutual funds and institutional buyers.

Dealers said the gains in Hindustan Lever were backed by expectations that monsoon would be normal this year.

Among the gainers, Reliance Industries closed higher by 4.08 per cent to Rs 280.80, Hindustan Lever rose 1.96 per cent to Rs 153.30, ITC went up by 1.56 per cent to Rs 688 and State Bank of India moved up 0.54 per cent to Rs 343.75. The country’s largest commercial bank hit a fresh six-year high on Monday.

The beleaguered state of IT companies continued to haunt the market. However, Infosys Technologies was an exception on Monday, gaining marginally after recent sharp battering. Tech stocks remained subdued on account of the strong rupee to the dollar. Infy gained 0.73 per cent to close at Rs 2,629, Satyam Computer fell 3.11 per cent to Rs 157.35 and HCL Technologies lost 1.86 per cent to close at Rs 119.

Among state-run companies, Engineers India rose by 14 per cent to Rs 286, Dredging Corporation went up by 16.84 per cent to Rs 340 and Bharat Earth Mover rose 10.11 per cent to Rs 88.80.