RTTNews - Mildly positive global cues and support for frontline stocks amid reports that the life insurer LIC would invest nearly Rs.50,000 crore in the equity market this fiscal year, helped the Indian market end on a positive note on Wednesday. But trading was volatile as traders either rolled over or squared their positions ahead of June series derivatives expiry on Thursday. After the close of market hours, the Indian Meteorological Department forecast that monsoon rains for June-September season will be seven percent below normal.
The BSE Sensex dropped to an intra-day low of 14,207 before recovering to finish at 14,423, up 99 points or 0.69% from its previous close. The S&P CNX Nifty rose 46 points or 1.08% to 4,293, while the BSE small-cap and the mid-cap indexes advanced over 2% each. The market breadth on the BSE was extremely positive, as advancers outnumbered decliners by 1801 to 797, with 70 stocks closing unchanged.
Stocks across the sectors, with the exception of banking stocks, ended in positive territory. Power, capital goods, healthcare and realty stocks led the gainers with over 2% gains.
Twenty-four out of 30 Sensex stocks closed in positive terrain. Jaiprakash Associates(up 6.01%), Sun Pharma(up 5.0%), TCS(up 4.33%), Tata Motors(up 4.20%), Grasim Industries(up 4.20%), ACC(up 3.24%), Reliance Infrastructure(up 2.88%) and Mahindra & Mahindra(up 2.84%) were the top gainers.
On the other hand, HDFC Bank, HDFC, ICICI Bank, Sterlite Industries, Reliance Industries and Ranbaxy ended in the red.
Reliance Natural Resources advanced 3.60% on reports that it has written two letters to Reliance Industries, seeking a settlement of the dispute over pricing of gas from the latter's Krishna Godavari finds. Reliance Industries, meanwhile, ended down 0.79% and ONGC rose over 2% ahead of the announcement of its financial results.
Satyam Computers rose 2.80% after the Mahindra group announced the appointment of a new CEO and chief financial officer on Tuesday. TCS jumped 4.33% and Infosys edged up 0.75% amid reports about signs of recovery in the outsourcing industry.
NTPC gained 1.40% on reports that it is in advanced stages of acquiring mining assets in Mozambique and Indonesia.National Aluminum fell nearly 2%, but Hindalco added 2.76% on reports that the government has imposed a 12-14% duty on aluminum flat-rolled products and 25-30% on foils imported from China.
Dr Reddy's Laboratories ended up 0.11% after it announced the launch of Bispec tablets (solifencin succinate) used in the management of over active bladder in India. Educomp Solutions jumped more than 11% after it signed a 50:50 joint venture agreement with UK-based educational and information company Pearson to meet the exploding demand for professional skills training in India's service-based economy.
KS Oils advanced 3.04% after it acquired 35,000 acres of palm plantation land in Indonesia for an undisclosed amount. Bajaj Auto gained 2.21% on the back of its launch of advanced version of the 220cc Pulsar bike.
Infrastructure stocks rose in anticipation of higher government spending on infrastructure. Larsen & Toubro(up 1.54%), IVRCL Infrastructure(up 7.39%), SREI Infrastructure Finance(up 6.45%), Nagarjuna Construction(up 3.18%) were some of the prominent gainers.
Sugar stocks closed higher across the board in anticipation of higher sugar prices amid concerns over a shortage in sugar output next year. Power stocks such as Tata Power, GVK Power and Reliance Power also ended stronger.
Kirloskar Electric rose 2.92% after it reported a 69% rise in its March quarter net profit. Sun TV Network gained nearly 3% on better-than-expected FY09 results. Religare Enterprises also ended up nearly 1% despite reporting a consolidated net loss of Rs 63.24 crore for the quarter ended March.
Flawless Diamond was locked at the 5% upper circuit limit after the company proposed to consider a stock split. Aurobindo Pharma jumped over 5% after the company secured nod from South Africa''s Medicines Control Council to manufacture and market five more products in that country.
Glenmark Pharmaceuticals rallied 6.54% on announcing phase II trials for its novel molecule for diabetes, Melogliptin. ABB rallied 4.58% on bagging orders worth Rs 220 crore from Tata Projects.
Kirloskar Brothers soared 10% on reports that it is in the process of spinning off its investments into a separate company. Prakash Industries rose 3.02% after the company proposed to issue up to 1,00,00,000 warrants convertible into equity shares on a preferential basis. GEE jumped 5% after the company proposed to issue bonus shares to its shareholders.
On the BSE, Suzlon topped the traded value chart with a turnover of Rs 268.70 crore followed by Reliance (Rs 210.12 crore), Reliance Natural Resources (Rs 209.47 crore), Educomp Solutions (Rs 180.71 crore) and Reliance Capital (Rs 173.83 crore).
Suzlon topped the volume chart with trades of over 23 million shares followed by Reliance Natural Resources (22.96 million), Unitech (18.9 million), IFCI (14.86 million) and Ispat Industries (11.49 million).
Elsewhere, the other Asian markets closed in positive territory on recovery hopes after modest rise in commodity and oil prices, European stocks were trading in the green with marginal gains in early trading and the U.S. stock futures point to a slightly higher opening Wednesday morning following mixed trading in the previous session.
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