The Indian market bounced back to finish sharply higher on Thursday amid strong global cues after leaked stress results in the United States improved investor confidence about the health of the U.S. banking sector. The much-awaited results of the so-called stress tests on 19 U.S. banks will be released after the close of the regular trading session in the U.S. later in the day.

Back home, trading was extremely volatile and second-line stocks outperformed the benchmarks. While metal, consumer durable and realty stocks led the gainers, select FMCG stocks like Hindustan Unilever, ITC, Nestle and Britania ended in the red. The metal index jumped 8.22% due to rising commodity prices in the overseas commodity markets.

IT stocks showed weakness amid concerns about scrapping of incentives related to outsourcing in the United States. Wipro jumped around 6% on stock-specific news, but Infosys and TCS closed in negative terrain.

After trading choppily in a narrow range of 12,144-11,981, the BSE Sensex closed at 12,117, up 164 points or 1.37%. The S&P CNX Nifty rose 59 points or 1.62% to 3,684 and the small-cap and the mid-cap indexes on the BSE gained around 2.70% each. On the BSE, the market breadth was extremely positive, with advancers outnumbering decliners by 1696 to 828.

Among the top gainers, Sterlite Industries surged up nearly 14%, Hindalco climbed 11.25%, Tata Steel jumped 8.76%, HDFC rallied 3.86% and Maruti Suzuki gained 3.72%. State Bank of India, Tata Motors, Bharti Airtel, Reliance Communication and Reliance Industries were the other prominent gainers.

However, Mahindra & Mahindra fell 2.83%, ACC declined 2.44%, Grasim Industries lost 1.47%, NTPC shed 1.34%, Sun Pharma moved down 0.67%, DLF edged down 0.43% and Tata Power closed down 0.31%.

Tata Steel soared 8.76% on reporting a 31% rise in its April steel sales to 4.52 lakh tonnes on the back of robust demand from auto and construction sectors. Adlabs Films rose 2.75% after the company announced its entry into the outsourcing industry for the media space.

Jet Airways gained nearly 3% on launching 'Jet Airways Konnect', a new economy service to cater to the needs of the consumers opting for low fares, from May 8 on select routes in the country. Kingfisher Airlines rose 2.25% on reports that State Bank of India has agreed to provide a Rs. 500-crore loan to the company to meet its immediate cash needs. SpiceJet also moved up 3.34%

Union Bank of India tumbled 6.01% after its net profit for the quarter-ended March fell 10.77% to Rs.465 crore from Rs.521.13 crore in the same quarter last year.

Asian Hotels rallied 8.65% to Rs.260.05 after a block deal of five lakh shares was executed on the Bombay Stock Exchange at Rs.222.50 per share. Apollo Tyres jumped 8.76% on reports that it will acquire Dutch company Vredestein Banden for around $300 million in a fortnight.

JSW Steel climbed 12.79% after the company reported a standalone net profit of Rs.49.20 crore for the quarter-ended March and forecast 78% growth in saleable steel production in the current financial year.

Among shipping stocks, Essar Shipping rose 2.92%, GE Shipping rallied 4.97%, Mercator Lines surged up 10.93% and Shipping Corporation of India gained 2.80% after the Baltic Dry Index, which measures commodity-shipping rates, surged. 9% in London on Wednesday.

Uttam Galva Steels was locked at the 20% upper circuit limit on reports that it has raised prices of its galvanized steel products by Rs. 2,250 per tonne and cold-rolled steel product prices by Rs.1, 000 per tonne in phases since April.

MIC Electronics advanced 4.83% on reports about the receipt of a new order from Indian Railways. Wockhardt added 1.30% after it proposed to divest the non-core animal healthcare business for about 1.5 billion rupees in a move to enhance the shareholder value.

ICICI Bank rose 1.53% on reports that it has scaled down its overseas operations in the United States and Sri Lanka. Punjab National Bank moved up 3.52% on saying that it will not lend below its benchmark prime-lending rate.

Cement stocks such as ACC, Ambuja, Binani, Ultratech and Grasim fell sharply following reports about a 10% decline in cement prices in the coming months. GIC Housing Finance jumped 6.17% after its net profit rose nearly 40% year-over-year to Rs.17.09 crore in the fourth quarter ended March.

Tata Steel topped the traded value with a turnover of Rs.222.33 crore. Followed by Reliance (Rs.210.89 crore), DLF (Rs.207.33 crore), Reliance Capital (Rs.182.88 crore) and ICICI Bank (Rs.175.90 crore).

Ispat Industries topped the traded volume with trades of 31.93 million shares. Followed by Unitech (16.85 million), Suzlon Energy (12.18 million) and Reliance Natural Resources (11.53 million) and Gujrat NRE Coke (10.33 million).

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