RTTNews - Thursday, the Indian market continued its positive momentum despite mixed global cues. While short covering on account of derivatives contracts expiry pushed stocks considerably higher, the benchmark indexes pared some of their gains in late trading reacting to the negative opening of the European markets.
That said, stocks across the sectors, with the exception of IT and defensive FMCG and healthcare sectors, ended with respectable gains. Metal, public sector and banking stocks led the gainers. Second-line stocks also closed with modest gains and the market breadth on the BSE was fairly positive. Advancers outnumbered decliners by 1737 to 1021.
For the 11th week in a row, inflation stood below one percent, government data showed on Thursday. The inflation rate came unchanged at 0.61% for the 12 months to May 16, matching the previous week's annual rise. Inflation stood at 8.66% during the corresponding week a year ago.
The BSE Sensex opened almost unchanged at 14,112 and dipped into the red within a few minutes. Thereafter, the index rose sharply to the day' high of 14,377 before paring some of its gains to finish at 14,296, up 186 points or 1.32% from its previous close. Likewise, the S&P CNX Nifty ended a choppy trading sharply higher at 4,337, up 61 points or 1.43%.
Among the major gainers, Ranbaxy jumped 4.24%, Sterlite rallied 3.59%, Bharti Airtel advanced 3.42%, NTPC gained 2.80% and Tata Steel added 2.77%. ICICI Bank, Maruti Suzuki, Larsen & Toubro, TCS, Mahindra & Mahindra, State Bank of India, ONGC and HDFC Bank also ended up more than 2% each.
On the other hand, Tata Motors tumbled 3.17%, Grasim Industries fell 2.80%, Wipro declined 2.68%, Reliance Communication shed 2.22%, Reliance Infrastructure lost 1.34% and Infosys ended down 0.56%. Hindustan Unilever, Hindalco, ITC and Sun Pharma also ended in the red with modest losses.
Reliance Industries rose 1.50% on reports that it has explored two more gas reserves near the D-6 oil block in the Krishna-Godavari basin. ONGC extended its previous day's gains and ended up 2.07% amid reports that the government may double the administered price of natural gas to $4.2 per million British thermal units.
However, Cairn India ended down 0.59% and Essar Oil fell 2.16%. State-run oil-marketing companies HPCL, BPCL and IOC also ended in the red.
Larsen & Toubro rose 2.32% on reporting a modest 3.28% rise in its net profit for the March quarter. Corporation Bank fell 3.25% after the bank proposed to issue upper Tier-II bonds for Rs. 500 crore on a private placement basis.
Tamil Nadu Newsprint and Papers ended down 0.67% on reporting a 26% drop in its net profit for the quarter ended March. Dish TV India gained 3.57% after its board of directors decided to raise long-term funds by way of issuance of FCCBs for an amount not exceeding $200 million.
Bharti Airtel rose 3.42% after losing significantly in the previous three sessions. Reports suggest that South Africa's MTN shareholders are skeptical about a merger proposal between the two companies.
Wockhardt fell 3.51% amid reports that it is in advanced talks to sell its German business, Espharma GmbH, to another German player, Lindopharm GmbH. Godrej Consumer Products soared 6.49% following a merger announcement of two of its group entities into itself.
Mahindra & Mahindra advanced 2.16% after its fourth quarterly net profit nearly doubled to Rs.418 crore from Rs.221 crore in the corresponding quarter last year. JSW Steel rallied 6.53% after its board approved the raising of $1 billion long-term funds to part-finance its capex and for other general corporate purposes including reducing the leverage.
Shipping stocks such as GE Shipping, Essar, Shipping Corporation of India and Mercator Lines ended sharply higher for the second day in a row on the back of an extended rise in the Baltic Dry Index.
Novartis India jumped 14.17% after its parent Swiss drug maker Novartis raised its open offer price to Rs.450 from Rs.351 to increase its shareholding in the Indian subsidiary to 90%. Britannia Industries fell 3.10% after reporting a 15% drop in its consolidated net profit for the financial year 2008-09.
Suzlon Energy rose 1.39% after it successfully renegotiated terms of loans with its bankers for the acquisition of REpower Systems AG. Steel Authority of India jumped 6.58% despite reporting a 37% fall in its March quarter net profit.
Zuari Industries rose 1.15% on signing an agreement with GAIL India for transportation of gas to its fertilizer unit at Zuarinagar, Goa. Bajaj Electricals jumped 10% on better-than-expected results for the March quarter.
Karur Vysya Bank rose 2.87% after reporting a 19% rise in its net profit for the March quarter. Ipca Laboratories tumbled 4.14% on reporting a 65% plunge in its net profit for the three months ended March.
On the BSE, Reliance Capital topped the value chart with a turnover of Rs.336.47 crore followed by Reliance (Rs.227.79 crore), DLF (Rs.220.73 crore), ICICI Bank (Rs.218.54 crore) and Indiabulls Real estate (Rs.212.55 crore) on the BSE.
Cals Refineries topped the traded volume chart with over 162.27million shares followed by Ispat (121.25 million), KS Oils (18.35 million), Alok Industries (17 million) and Unitech (16.4 million).
Else where, mixed trading was witnessed in the markets across Asia. While the markets in Australia, Malaysia and Singapore ended in negative territory, the markets in Japan, South Korea and Indonesia closed higher. The markets in Hong Kong, China and Taiwan were closed for public holidays.
European shares were in the red in early dealing, tracking a decline on Wall Street after a spike in Treasury yields triggered a sell-off in equities. U.S. stock futures indicated slightly higher Thursday morning in New York ahead of a barrage of economic reports, including a pivotal reading on new home sales.
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