Sensex regains as old economy picks up
Mumbai: Despite being the last day of the settlement period on the BSE, Friday saw the old economy and the new economy stocks rise to new heights. The BSE sensitive index gained 140 points or 3 per cent to close at 4,693.88 on Friday as against the previous close of 4,553.92 points. AT the NSE, the 50-stock S&P CNX Nifty gained 42 points or 3 per cent to close at 1,422.40 against the previous close of 1,380.55 points.

Foreign institutional investors (FIIs) and domestic mutual funds including Unit Trust of India, were the key contributors to the spurt, the second large one in two days. Most frontline IT and telecom stocks were in the limelight.

Prominent gainers were Infosys Technologies, Satyam Computers, Wipro and HFCL, as investors were getting out of cheaper second-rung IT stocks and picking up the more important ones.

One highlight of Friday’s trading was that the rally proved widespread enough to cover even stocks like Hindustan Lever, M&M and Telco.

Dealers said market rumours had it that the government may consider a relaxation in dividend tax, which may led to further improvement in market sentiment.
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