RTTNews - The Indian market bounced back sharply on Thursday after a 2-day loss, as impressive quarterly earnings from top bluechip companies and reports about likely upgrades in earnings across sectors for the rest of the year, more than offset concerns about a spike in valuations. An encouraging report on core sector output for June and favorable global cues also offered some support.
India' infrastructure output grew in June at its fastest pace in 18 months, signaling a rebound in economic activity, government data showed. Improved production in cement, coal, crude oil and electricity lifted output of six core industries by 6.5 per cent in June compared to an unrevised 2.8 percent rise in the previous month and 5.1 per cent growth in the corresponding month a year ago. During April-June this fiscal year, the core sector output grew by 4.8 per cent compared to 3.5 percent in the year-ago period.
On the other hand, the headline inflation rate hovered in negative zone for the sixth straight week, falling 1.17% for the week ended July 11 compared to a 1.21% fall in the previous week and the 12.13% rise in the corresponding week last year, provisional data released by the ministry of commerce and industry showed.
The BSE Sensex opened higher at 15,009 and rose steadily to a high of 15,265 in late trading before finishing at 15,231, up 388 points or 2.61% from its previous close. Likewise, the S&P CNX Nifty climbed 125 points or 2.84% to 4,524 and the BSE small-cap and the mid-cap indexes ended up over 2% each. On the BSE, the market breadth was extremely positive. Gainers outnumbered losers by 1796 to 844, while 78 stocks closed unchanged.
Stocks closed sharply higher across the sectors, with realty, consumer durable, metal, FMCG and auto stocks leading the rally.
Among the top gainers, Reliance Infrastructure, DLF, Maruti Suzuki and Hindalco jumped over 6% each, ACC climbed 5.80%, ITC soared 5.55%, Sterlite rallied 5.22%, Jaiprakash Associates advanced 4.93%, Reliance Communication gained 4.91% and Tata Motors added 4.88%.
However, bucking the rising trend, while Bharti Airtel slipped a little over 1% on disappointment over its modest 1.3% sequential growth in June-quarter revenue, ONGC closed almost unchanged amid reports that it had a subsidy burden of Rs.4.29 billion in the April-June quarter.
Marico closed down 1.82% despite reporting a 21% year-over-year rise in its June-quarter consolidated net profit. Indian Bank surged up 7.03% after reporting a 52% rise in its quarterly net profit. MRPL fell 2.78% on reports that it will invest Rs. 1,800 crore in the new polypropylene unit. For the quarter ended June, the company announced a 50% year-over-year drop in its net profit.
Maruti Suzuki India rallied 6.44% after its net profit grew over 25% to Rs.583.54 crore for the three months ended June compared to Rs 465.85 crore in the corresponding quarter last year. Ispat Industries, Hindalco, Sterlite and Hindustan Zinc led the metal pack with over 5% gains on the back of higher metal prices.
ACC climbed nearly 6% after reporting an 85% growth in its June-quarter consolidated net profit. ITC soared 5.55% after its standalone net profit for the June quarter grew to Rs. 878.70 crore from Rs. 748.67 crore in the corresponding period last year.
Tata Motors advanced 4.88% on reports that Italian car maker Fiat SpA and Tata Motors will sell the world's cheapest car Nano' jointly in Latin America. Tata Communications rose 3.73% after it partnered with F-Secure to offer mobile phone security services in India.
Ramsarup Industries was locked at the 5% upper circuit limit on bagging orders worth Rs 62 crore for laying of sewerage lines at Jhunjhunu and Nagaur districts in Rajasthan. Finolex Cables edged up 0.44% after announcing a three-fold growth in its standalone June-quarter net profit.
Siemens gained nearly 2% on bagging two orders worth Rs 109 crore from Power Grid Corporation of India. KEC International surged up 8.71% after it secured four orders worth Rs, 471 crore in the domestic market.
Elsewhere, the other Asian markets ended in positive territory on increasing optimism about a recovery in the global economy and the European markets were trading in the red in early trading on profit taking after seven days of rally, while U.S. stocks are set for a higher opening Thursday morning after pausing in the previous session.
Light sweet crude oil for September delivery fell to $65.26 a barrel in late Singapore trading on Thursday from its previous close in New York at $65.40 on Wednesday.
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