Mumbai: The Government's decision to grant oil PSUs (Public Sector Undertakings) limited freedom to fix fuel prices prompted a smart stocks rally helping Sensex end higher by 45 points today (July 26, 2004) even as the moratorium imposed on Global Trust Bank (GTB) had turned the heat on bourses during morning trading.

Oil PSUs rallied smartly and scored impressive gains as the decision to allow State-run oil companies to fix petrol and diesel prices within a narrow price band was in the interest of the sector.

The BSE Benchmark 30-share Index which started off on a weak footing at 5046.99, later made a strong turnaround and gradually moved upwards to the intra-day high of 5126.45 before ending the day at 5118.17 as against last Friday's close of 5073.34, a net rise of 44.83 points or 0.88 per cent.

Foreign Institutional Investors, which have reported net inflow of Rs 245 crore in the first four sessions last week, were believed to have stepped their activity and were net buyers in select blue-chip counters including Tata Motors, Tisco, RIL, ONGC and MUL.

Attributing weak start to a negative impact of placing GTB under a three-month moratorium on Saturday, brokers said banking stocks were under heavy pressure but later recovered their losses in line with the price rally.

The trading in the GTB counter was suspended temporarily after it remained stuck in 20 per cent lower circuit breaker during the morning trading.

The PSU shares rally aided the BSE PSU Index close up by 62 points or 1.19 per cent at 3303.33 from previous close of 3241.33.

HPCL, IOC, BPCL, ONGC, Kochi Refinery, Chennai Petro, RIL and IBP recorded sharp gains on heavy buying support.