RTTNews - The Indian market closed sharply higher at a fresh 9-month high on Monday, boosted by sharp gains across the world equity markets. Various economic reports released over the weekend hinted that the global recession was moderating and growth could resume by year-end.
On the domestic front, better-than-expected GDP growth numbers for the fiscal year 2008-09 and pro-reform talk by several ministers of the newly set-up UPA coalition government over the weekend have reinforced the optimism on earnings front.
Additionally, a revival in manufacturing activity for a second straight month in May improved investor sentiment. The Markit Purchasing Managers' Index based on a survey of Indian 500 companies, rose to 55.7 in May from 53.3 in April, reflecting a steady improvement in domestic demand since December, when it hit a trough of 44.4.
Meanwhile, investors shrugged off weak export data as it came on expected lines. Government data on Monday showed that India's exports fell an annual 33.2 percent in April to $10.74 billion. Trade Secretary GK Pillai said exports would continue to decline until September before showing any meaningful recovery.
After moving choppily in a range of 14,907-14,655, the BSE Sensex closed at 14,841, up 215 points or 1.47% from its previous close. The S&P CNX Nifty rose 81 points or 1.82% to 4,530.
On the BSE, while the broad-based BSE 500 index rose 2.01%, the mid-cap index gained nearly 3% and the small-cap index added 3.51%. The market breadth was extremely positive. Advancers outnumbered decliners by 2290 to 541 and 39 stocks closed unchanged.
Sector-wise, realty and metal stocks outperformed the broader market, with their benchmark indexes raising more than 5% each. The IT index advanced 3.95%, the FMCG index rose 2.76% and the consumer durable index gained 2.68%. Banking stocks closed subdued.
Tata Steel (up 7.79%), Sterlite (up 6.75%), ACC (up 6.40%), NTPC (up 6.17%), Jaiprakash Associates (up 6.12%), Mahindra & Mahindra (up 5.25%), HDFC (up 5.16%) and ITC (up 5.04%) were the top gainers.
On the other hand, ICICI Bank lost 2.36%, BHEL shed 2.27%, Bharti Airtel declined 1.67%, Ranbaxy fell 1.51%, HDFC Bank moved down 0.65%, Larsen & Toubro edged down 0.56% and TCS slipped 0.24%.
Indian Oil Corporation fell 2.84% amid reports that it will buy Cairn India's crude oil from January 2010. Ispat Industries ended down 1.90% on reports that its promoters have pledged their entire stake with lenders in return of a debt-restructuring package.
Satyam Computers jumped 6.09% on announcing new leaders for Australia and New Zealand regions. Gokul Refoils and Solvent jumped 8.54% after its board of directors approved a 5-for-1 stock split.
Aviation stocks closed mixed after Civil Aviation Minister Praful Patel hinted at an initial public offer for government's flag carrier Air India. While JetAirways rallied 4.77%, SpiceJet fell 0.97% and Kingfisher ended down 0.48%.
State-run firm NTPC rallied 6.17% on reports about its investment plans worth Rs.55, 000 crore over the next three years. Tata Steel climbed 7.79% after it received lenders' consent to reset debt covenants on 3.7 billion pounds loans it took to buy Anglo-Cutch Corus.
Maruti Suzuki ended up 1.84%, TVS Motor rose 3.69% and Hero Honda Motors gained 1.92% on reporting growth in their vehicle sales in May year-over-year. Religare Enterprises fell 2.50% after it tied-up with the world's second largest insurer Swiss Reinsurance to set up a health insurance company in India.
Parsvnath Developers rallied nearly 5% after it received all requisite approvals for the launch of a Rs.1, 300 crore worth premium luxury project in the heart of Delhi.
JMC Projects was locked at the 5% upper circuit limit after its net profit for the March quarter jumped 70% year-over-year. Voltas climbed more than 20% on reporting a 13% rise in its March quarter net profit. The company also secured new orders worth Rs.300 crore for airport electro-mechanical works.
Hotel stocks surged on hopes the government will accord the infrastructure status to the labor-intensive hospitality sector. Indian Hotels jumped 16.07%, EIH climbed 14.88%, Hotel Leela Venture surged up 20.43%, Taj GVK soared 19.48% and EIH Associated Hotels rallied 19.68%.
Page Industries rose 3.02% after ICICI Prudential Discovery Fund bought a 0.71% stake in the company through open market transactions on Friday. Glenmark Pharmaceuticals ended down 0.77% even as its overseas unit secured final approval from the U.S. drug regulator for launch of a generic drug.
On the BSE, Unitech topped the traded value with turnover of Rs.376.72 crore followed by Suzlon Energy (Rs.358.45), Reliance Capital (Rs.260.18 crore), HDIL (Rs.241.98 crore) and Reliance Natural Resources (Rs.216.64 crore).
Unitech topped the traded volumes chart with trades of 42.63 million shares followed by Suzlon Energy (32.84 million), Satyam Computer (32 million), Reliance Natural Resources (25.21 million) and Cals Refineries (25.21 million).
Elsewhere, the other Asian markets showed notable gains, helped by a positive closing on Wall Street on Friday and better-than-expected economic data from China for the third successive month in May. The major European averages were uniformly higher and U.S. stocks were looking to kick off June on a high note Monday morning in New York.
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