Post-Prez poll hope ups Sensex 94 pts

Led by Infosys,RIL and ICICI Bank,shares rose for the third straight day today

Led by Infosys,RIL and ICICI Bank,shares rose for the third straight day today with Sensex gaining 94 points on hopes of speedier reforms after the Presidential polls amid a positive trend in global markets.

The BSE benchmark index,which had gained over 81 points in last two sessions,rose by 93.84 points,or 0.55 per cent,to 17,278.85 as 22 scrips out of 30-share index gained. The day8217;s best performers include Infosys,Sterlite,Tata Power,Bhel and Bajaj Auto that gained in 2-3 per cent range.

RIL,ahead of its April-June earnings tomorrow,rose 1.7 per cent while hopes of good numbers from ICICI Bank next week drove the scrip 1.3 per cent higher.

Shares of Maruti Suzuki,which tanked nearly 9 per cent,were a big drag on indices after its Manesar plant was shut down in relation to the violent incident last evening.

Bharti Airtel slumped 2.3 per cent ahead of an Empowered Group of Ministers8217; meeting that may tomorrow decide on the reserve price of 2G spectrum in upcoming auction.

Traders said investors hope government would accelerate reforms after Presidential elections for which polling begun today. Results will be announced on July 22.

8220;Markets traded in compact range for most part of the day as if waiting for a trigger for market direction8230;FIIs continue to be net buyers in July,8221; said Nidhi Saraswat,Senior Research Analyst,Bonanza Portfolio.

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The total market breadth remained favourable as 1,514 stocks ended higher while 1,299 scrips closed with losses.

The 50-share National Stock Exchange index Nifty rose by 26.40 points,or 0.51 per cent,to 5,242.70.

Traders said the domestic market also tracked a firming trend as global stocks rose on speculation China will announce specific measures to boost growth.

European shares hit 11-week high as quarterly results from Novartis and Sandvik lifted sentiment while gains in Asian markets were led by Hong Kong,Taiwan and Japan.

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The key indices in China,Japan,Singapore,Taiwan,South Korea and Hong Kong firmed up by 0.73 per cent to 1.66 per cent. In Europe,key benchmark indices in France,Germany and UK rose by between 0.24 per cent to 0.64 per cent.

Trading in US index futures also indicated that the Dow could advance 29 points at the opening bell today after gaining over 103 points yesterday as corporate profits from bellwethers Intel and Honeywell lifted sentiment.

Back home,Infosys was the top gainer from the Sensex pack with a rise of 3.08 per cent,followed by Sterlite Ind 2.42 pc,Tata Power 2.34 pc,BHEL 2.18 pc,Bajaj Auto 1.76 pc,RIL 1.73 pc,Hindalco 1.50 pc,ICICI Bank 1.32 pc,Tata Motors 1.31 pc,Wipro 1.24 pc and HDFC 0.99 pc.

However,Sensex gains were capped as Bharti Airtel lost 2.34 per cent,Hero MotoCorp dropped by 1.37 per cent,SBI was lower by 1.29 per cent and Dr Reddy8217;s Lab shed 0.98 per cent.

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8220;Markets are more interested in what government would do on the policy front after Presidential polls. As far as domestic economic data is concerned,consumer prices remained elevated and sticky in June. What8217;s worse,food prices could spike in the wake of a weak monsoon. Fuel prices,particularly the regulated ones,might rise after the Presidential elections,8221; said Amar Ambani,Head of Research,IIFL.

Among the sectoral indices,the BSE-IT rose by 1.75 per cent,the BSE-CD rose by 1.38 per cent and the BSE-Oilamp;Gas jumped by 1.24 per cent. However,the BSE-Auto declined by 0.47 per cent.

The total turnover dropped to 1,926.30 crore from Rs 2,293.27 crore yesterday.

Foreign institutional investors FIIs bought shares worth a net Rs 276.40 crore yesterday as per provisional data released by the stock exchanges.

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