Sensex bounces back by 177 pts to fresh 32-month high

MUMBAI: The Bombay Stock Exchange benchmark Sensex on Friday surged by 177 points to touch a fresh 32-month high as investors shrugged off the impact of Thursday's rate hike by the RBI amid a firming global trend.

With a seven-day rally broken by an 84 point decline in Thursday's choppy session, the Sensex bounced back today by adding 177.26 points to 19,594.75, a level last seen in January, 2008.

Similarly, the broad-based National Stock Exchange index Nifty rose by 56.25 points to 5,884.95, within sight of the 5,900-mark.

Marketmen said that reports of higher advance taxes paid by corporates helped investors overlook the Reserve Bank of India's hike of borrowing and lending rates yesterday to tighten the monetary policy, making loans more expensive.

A firming trend in the Asian region and a higher opening in Europe further drove the market upward.

The most valuable entity on the Sensex, Reliance Industries, rose by Rs 25.85 to Rs 1,026.75 on reports that the energy major is in talks with US-based Chesapeake Energy to buy a stake in the Eagle Ford shale gas project.

The second most valuable firm by weightage, Infosys Technologies, led the gains in the software export sector by gaining Rs 6.30 to Rs 2,974.10.

The two stocks together carry nearly 23 per cent weightage on the market.

The consumer durable sector index gained the most by rising 2.10 per cent to 6,154.17 as stocks of Titan, Whirlpool and Vip industries recorded handsome gains.

The healthcare sector index was the second-best performer by rising 2.05 per cent to 5,842.24 as Elder Pharmaceuticals shot up by Rs 20.95 to Rs 434.95 following UK-based NeutraHealth's approval of a takeover offer by the Indian drug-maker.

With buying activity spread over a wide front, the mid-cap sector index rose by 1.43 per cent to 8,104.28 and the small-cap index by 0.93 per cent to 10,238.91.

TOI

India to recharge bid for UN Security Council seat

NEW DELHI: India is set to accelerate its diplomatic effort for reform of the UN Security Council as external affairs minister S M Krishna gears up to meet his counterparts from other G4 countries, including Japan, Brazil and Germany, and those of other multi-nation groupings to seek their support.

Krishna leaves for New York on Saturday on a 10-day visit during which he will represent India at high-segment meetings of the 65th United Nations General Assembly (UNGA) and other associated events.

The G4 foreign ministers are expected to meet on the sidelines of the UNGA next week to review the progress in their campaign and rejig their strategy for accelerating the long-dragging reforms of the UN Security Council.

The meetings come at a hopeful moment for India as it readies to get elected to a non-permanent seat of the UN Security Council for 2011-12 in October with an overwhelming majority. If all goes well for New Delhi, India will be in the Security Council for a two-year term as a non-permanent member from Jan 1, 2011 -- the first time in 19 years it will get the prized seat.

With barely days to go before the UN General Assembly decides on India's bid for a non-permanent seat Oct 1, Krishna will be networking extensively and address multi-nation groupings, including G-77 foreign ministers meeting on Sept 24, the SAARC foreign ministers' gathering Sept 29, and the meetings of BRIC (Brazil, Russia, India and China), IBSA (India, Brazil and South Africa) and RIC (Russia, India and China).

In a positive development for India, some of the countries in the United for Consensus, informally called Coffee Club, who were opposed to the G4 bid, are now backing India's claim for a permanent seat.

Many countries in the Coffee Club did not have problems with India's candidature, but were hostile to their rivals in the G4 grouping. Pakistan opposed India's bid, Mexico opposed Brazil's candidature, and Italy was dead set against Brazil's UN ambitions.

Now, many of the Coffee Club countries are backing India for a non-permanent seat in the Security Council, an indication that many of them will finally veer around to supporting India for a permanent seat as well.

TOI