Monday, the Indian market ended higher on the back of strong gains in metals and banking stocks. After opening higher, the market slipped into negative terrain in early trading due to profit taking ahead of a holiday on Tuesday for Ambedkar Jayanti.
However, positive news flow from overseas, consistent buying by foreign funds over the past few weeks and the strengthening of the rupee to its highest level in 6 weeks against the US dollar helped the market rebound sharply before losing some of its ground at the end of the day. Comments by the trade secretary G K Pillai that India's exports for March may fall by about 31% from a year earlier also led to some profit taking.
The major markets across the Asia-Pacific region, open for trading on Monday, ended in positive territory led by positive closing on Wall Street Thursday on expectations of a recovery in global economy in the near term. The markets in Australia, New Zealand, Hong Kong and Malaysia were closed for Easter Holiday. Markets across Europe also remained shut.
Back home, second-line stocks witnessed a sharp rally, outperforming the benchmarks. While the broad-based BSE 500 index rose nearly 2%, the mid-cap index advanced 3.17% and the small-cap index rallied 3.92%. On the BSE, the market breadth remained fairly positive on account of the activity in the broader market, with advancers outnumbering decliners by 2064 to 515.
Sector wise, metal, banking and realty stocks outperformed the broader market, but the consumer durable sector and the IT sector ended in the red. Select FMCG stocks such as Hindustan Unilever and ITC also closed in negative territory.
The BSE Sensex opened higher at 10,916 and fell to a low of 10,801 in early trading. Thereafter, the index recovered sharply to hit the day's high of 11,070 before finishing at 10,967, up 163 points or 1.51% over the previous close. Likewise, the S&P CNX Nifty rose 41 points or 1.21% to 3,383.
Among the major gainers, Tata Motors surged up 12.01%, Tata Steel climbed 8.31%, Sterlite Industries soared 7.39%, State Bank of India rallied 6.80% and DLF advanced 5.04%.
HDFC Bank, ICICI Bank, Reliance Communication, Mahindra & Mahindra, Jaiprakash Associates, Tata Power and Reliance Industries were the other prominent gainers.
However, TCS, Wipro, Grasim, Infosys, NTPC, HDFC, Bharti Airtel and Larsen & Toubro ended in the red.
Tech Mahindra surged up more than 12% after the company emerged as the highest bidder to acquire Hyderabad-based Satyam Computer Services.
After slipping to a low of Rs.785 during the day, Larsen & Toubro recouped some of its loss to finish at Rs.824, down 0.59%. L & T, which was out of the race to acquire Satyam, said that it would hold its 12 percent stake in the company.
Sun Pharma rose 1.75% after it received an approval from the US regulatory approval to market Roxicodone, Oxycodone hydrochloride tablets used as painkillers. Ciba India added nearly 2% after BASF SE made an open offer to buy a 20% stake in the company at Rs.237.13 per share after taking over its Swiss parent Ciba Holdings AG.
Tata Power gained 2.50% on reports that it will file an appeal in the Supreme Court, after the Delhi High Court dismissed the Tatas' petition challenging the government's decision to allow Anil Ambani-led Reliance Power to divert coal from the captive mines of Sasan Ultra Mega Power Project for use in other projects.
Geojit Financial Services advanced 4.31% despite reporting a consolidated net loss of Rs.10.76 crore for the fourth quarter ended March compared to a net profit of Rs.11.02 crore in the same quarter last year.
Infomedia 18 jumped nearly 12% after its board approved to raise Rs.100 crore through a rights issue. The pricing, ratio and timing of the issue would be decided by the board in consultation with lead managers, it said in a release to the stock exchanges.
MRF soared nearly 10% after its standalone net profit for the March quarter rose to Rs. 68.69 crore from Rs. 65.62 crore in the same quarter last year. Maruti Suzuki rose 1.98% amid reports that it plans to launch electric cars and compressed natural gas (CNG) variants for three or four of its models in the domestic market.
Electrotherm India was locked at the 20% upper circuit limit ahead of a board meet to review proposed de-merger of the engineering business of the company to Electrotherm Engineering & Projects.
Suzlon Energy jumped 11.66% on execution of a block deal on the National Stock Exchange at Rs.62 per share. Strides Arcolab rallied 6.96% ahead of a board meet to consider various options of reorganizing the business of the company and its subsidiary companies.
GAIL (India) tumbled 3.86% on reports that it plans to expand its presence in Russia, Egypt and China. Reliance Industrial Infrastructure slumped 6.92% after the company denied speculation that it will merge with its parent firm Reliance Industries.
Bharti Airtel ended down 0.76% on reports that the Central Vigilance Commission (CVC) has ordered an investigation to probe the alleged under-reporting of revenues by the company for carrying long-distance traffic. NTPC fell 1% after it signed a joint venture with three public sector undertakings to set up a high power- testing laboratory for testing equipment as per international standards.
Satyam topped the traded value with a turnover of Rs.291.40 crore followed by Larsen & Toubro (Rs.244.80 crore), Reliance (Rs.213 crore), Reliance Industrial Infrastructure (Rs. 193.30 crore) and HDIL (Rs.182.45 crore).
Satyam topped the traded volume with trades of around 5.66 crore shares followed by Unitech (2.54 crore), Cals Refineries (2.20 crore), Rolta (1.90 crore) and Suzlon Energy (1.83 crore).
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