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Sensex ends 2 pct up after choppy start

January 30, 2009

The BSE Sensex saw a choppy start today but buying by domestic funds lifted it into positive territory.

The 30-share sensitive index rose 2 percent to 9,424.24, its highest close since January 7, as domestic funds focussed on blue chips with earnings potential, such as Reliance Industries.

The Nifty ended 1.8 percent higher at 2,874.80 points.

Investor sentiment was also boosted from higher European shares that rode a rally in drug makers.

Index heavyweight Reliance Industries rose 4.5 percent to 1,325.20 rupees, its highest close in nearly four weeks. The energy giant is expected to start gas sales in the second half of February from its large field off the east coast.

Buying was seen in SBI, L&T, ITC and ONGC. L&T climbed 4.4 percent on higher-than-expected quarterly earnings.
Hindalco rallied 6.5 percent after beating quarterly net profit.
Suzlon Energy rebounded 5.9 percent after it said it was negotiating orders that could double its order book. The stock initially fell 5.9 percent after the company posted a consolidated loss for the December quarter.

Satyam Computer saw 37.3 million shares being traded. The embattled outsourcer closed 8.4 percent higher at 54.05.

ONGC rose 3 percent on hopes of better than expected March quarterly results.

The index has registered a rise of 8.4 percent on the week, but fallen 2.3 percent in January in reaction to lower earnings growth. The global financial crisis has seen foreigners pulling out more than $13 billion from Indian stocks in 2008. The withdrawals have continued in January. In this scenario, can domestic funds be expected to keep the resilience going?

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