The market started the week on a strong note on Monday, regaining its psychological

RELATED ARTICLES Sensex snaps two-day rally, down 82 pts on poor IIP nos Sensex snaps two-day rally, down 82 pts on poor IIP nos Sensex snaps two-day rally, down 82 pts on poor IIP nos Sensex up 123 pts in late buying amid firm European mkts Sensex up 123 pts in late buying amid firm European mkts

mark of 18,000 after choppy trade. The tabling of the Direct Tax Code bill in the Lok Sabha and strong sentiment in US market on Friday influenced market movement during the day.

The Sensex added 33.70 points, or 0.19 per cent, to close at 18,032.11. The BSE 200 index added 3.11 points, or 0.13 per cent, to close at 2312.18.

“Slightly better than expected US GDP data and some inspiring talk by US Fed chairman Ben Bernanke lifted sentiments on Wall Street and in our bourses too. Not surprisingly, Asian markets were all up smartly,” said Amar Ambani, vice-president of research at India Infoline.

The BSE Metal Index gained as LMEX, a measure of six metals traded on London Metal Exchange, added 2.13 per cent on August 27. Index heavyweights Tata Steel, Jindal Steel, Sterlite and Hindalco added 3.49 per cent, 1.53 per cent, 0.49 per cent and 1.96 per cent, respectively.

The Nifty index rose 6.75 points, or less than one per cent, to close at 5415.45.

“During late trade, some profit booking happened in the market as investors were worried about the changes in taxation of capital gains in the revised DTC, which was to be presented in the Parliament,” said Avinash Gupta, head of research at Bonanza Portfolio. “Nifty is likely to face some resistance between 5,450 and 5,500,” he said.

The government will come out with the GDP data for the June quarter on Tuesday. According to a median survey of 27 economists by Bloomberg, GDP numbers are likely to be at 8.80 per cent for the June quarter against 8.60 per cent in the previous quarter.

“The market may react positively to the GDP numbers if they come at over 8.8 per cent, which is anticipated by most economists,” Sudip Bandyopadhyay, managing director and chief executive officer of Convexity Solution, told Financial Chronicle.

EIH and EIH Associated Hotels zoomed 11.49 per cent and 15.69 per cent, respectively, on news that Reliance Industries has bought 14.12 per cent stake in EIH for Rs 1,021 crore.

Oil and Natural Gas Corporation scaled a 52-week high after reports that the government may allow the company to restrict royalty outgo to 30 per cent of the total amount with respect to the oil blocks own by Cairn India. The share price of the company rose by Rs 26.80, or 2.03 per cent, to close at Rs 1,344.45.

Tata Steel spurt by Rs 17.80, or 3.49 per cent, to close at Rs 527.95. The stock rose after the company’s UK unit, Corus, signed an agreement with Thailand’s Sahaviriya Steel Industries for the sale of its mothballed Teesside plant in norther England for $500 million.