Tuesday, the Indian market closed higher in a choppy session due to fund buying on the last day of the financial year. Signs of recovery in the other Asian markets, the strong opening of the European markets and higher US index futures also improved investor sentiment.
Buying interest was seen across the sectors. Stocks of capital goods, realty, auto and metal companies outperformed the broader market, while consumer durable, public sector and oil/gas stocks closed with modest gains.
After opening higher at 9,633, the BSE Sensex moved down to 9,547 in early trading. The benchmark saw a sharp comeback since then and rose to a high of 9,826 before paring some of its gains to finish at 9,708, up 140 points or 1.47% over the previous close. Likewise, the S&P CNX Nifty rose 43 points or 1.44% to 3,021.
Second-line stocks also showed handsome gains. On the BSE, the market breadth was extremely positive, with advancers outnumbering decliners by 1553 to 900. The small-cap index rose 1.46%, the mid-cap index gained 2.27% and the broad-based BSE 500 index moved up 1.76%.
Twenty-five out of 30 Sensex stocks closed firm, but HDFC, NTPC, ICICI Bank, Hindustan Unilever and ONGC ended in the red.
Among the major gainers, Jaiprakash Associates jumped 7.26%, Tata Steel surged up 5.02%, Tata Motors rallied 4.64%, State Bank of India advanced 4.36%, Reliance Communication rose 4.02% and Mahindra & Mahindra moved up 3.51%.
Ranbaxy Laboratories, Hindalco Industries, Larsen & Toubro, ITC, TCS, Grasim, Sun Pharma, Bharti Airtel and Maruti Suzuki were the other prominent gainers.
Suzlon Energy rose 2.54% after its overseas unit Suzlon Energy Australia Pty secured an order for supply of 63 wind turbine generators. Voltas rallied 3.48% after a block deal of 14.30 lakh shares was executed on the Bombay Stock Exchange.
Wockhardt soared 7.14% on reports that Fortis Healthcare will acquire a substantial stake in its arm Wockhardt Hospitals. Ranbaxy Laboratories advanced 4.58% on news that it will launch in India an anti-hypertensive drug, Olvance, which was originally discovered by Daiichi Sankyo.
Gitanjali Gems jumped nearly 8% after it acquired the entire stake in a joint venture company Modali Gems Pvt Ltd. Cadila Healthcare ended up 0.29% after it received final approval from the USFDA to market Topiramate tablets in different strengths of 25 mg., 50 mg., 100 mg., and 200 mg.
Larsen & Toubro added 3.33% after the company said that it has bagged a slew of large value orders aggregating Rs.1100 crore in the electrical construction sector in the fourth quarter of 2008-09.
MindTree Ltd rose 3.32% after it announced a major restructuring in its organization as part of its growth plans to become a $1 billion organization. Dishman Pharmaceuticals & Chemicals gained 3.63% after its board approved a proposal to invest Rs.35 crore in setting up a drug formulations unit in Bavla in western state of Gujarat.
Financial Technologies climbed 6.09% on reports that it has approached some investment bankers to revive plans of an initial public offer of its unit Multi Commodity Exchange
However, MCX's managing director, Joseph Massey reportedly denied any such plans.
Kalpataru Power Transmission gained 1.96% on bagging new overseas orders worth Rs.400 crore from Sonelgaz, the state electricity company of Algeria for supply of transmission equipments.
Stocks of tea companies such as Harrisons Malayalam was locked at the 20% upper circuit limit, Mcleod Russel climbed 15.17% and Assam Company jumped 10% on reports that tea prices in India may rise 15-20% in the year beginning April 2009 on fear of a global shortage due to weather problems in India and a crop shortage in Kenya.
Among oil-exploring companies, Reliance Industries and Cairn India closed firm, but ONGC fell 0.41% after crude oil price retreated over 7% in New York trading on Monday.
JetAirways moved down 1.74% on allegations that it has partly defaulted in payment of yearly installments to Sahara.
ICICI Bank topped the traded value with a turnover of Rs.351.08 crore followed by Reliance (Rs.254.60 crore), SBI (Rs.169.61 crore), Reliance Infrastructure (Rs.162.78 crore) and Reliance Capital (Rs.146.50 crore).
Unitech topped the traded volume with trades of around 1.56 crore shares followed by GVK Power & Infrastructure (1.40 crore), Cals Refineries (1.21 crore), Reliance Natural Resources (1.14 crore) and ICICI Bank (1.06 crore).
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