Wednesday, the Indian market bounced back sharply on the back of heavy buying in index heavyweights following favorable cues from the other Asian and the European markets. Short covering on account of the expiry of April series derivative contracts also helped the recovery. According to reports, marketwide rollover and stock futures rollover were at 64% each and the Nifty futures saw a rollover of 63%.
The market saw broad based buying following reports suggesting a quick turnaround in domestic economic conditions as early as June amid significant improvement in lead indicators such as foreign exchange reserves, FII flows, inventories and money supply. In the past five days, Swiss bank UBS AG, Barclays Capital and Macquarie Bank have said the Indian economy can only get better from now, and that they are looking at a mid-year recovery.
Sector wise, benchmarks for the IT and banking stocks jumped more than 4% each, the oil & gas index, power and auto indexes rallied around 3% each and the metal index rose 2.8%. On the other hand, defensive healthcare and FMCG stocks showed only modest gains.
The BSE Sensex opened higher at 11,092 and continued its positive momentum all through the day. The Sensex ended near the day's high at 11,403, up 402 points or 3.65% over the previous close and the S&P CNX Nifty rose 112 points or 3.32% to 3,474.
On the BSE, the market breath was fairly positive with advancers outnumbering decliners by 1432 to 1028. The small-cap index rose 1.35%, the mid-cap index gained 1.83% and the broad-based BSE 500 index advanced 3.01%.
Among the major gainers, ICICI Bank surged up 8.74%, Jaiprakash Associates jumped 6.85%, Sterlite Industries soared 6.75%, Tata Power rallied 6.60% and Infosys advanced 5.29%.
Reliance Infrastructure, Wipro, Hindustan Unilever, TCS, Tata Motors, Sun Pharma, ONGC, Reliance Industries and HDFC were the other major gainers. All the Sensex constituents ended in the green with the exception of Grasim Industries. Grasim closed with a modest 0.54% loss.
SKF India surged up 10.97% to Rs.179.60 after 5.02 lakh shares changed hands in a block deal on the National Stock Exchange at Rs.178 per share. Patni Computer Systems soared 7.41% on reporting strong quarterly results for the March quarter.
Bharti Airtel gained 3.25% after reporting a 21% rise in quarterly profit and announcing its maiden dividend and a two-for-one stock split. Firstsource Solutions closed up 0.32% on reporting a consolidated net profit of Rs.40.87 crore for the March quarter.
Man Industries was locked at the 10% upper circuit limit after it won a Rs.1340 crore order from the Middle East. ABB rose 2% on winning an order worth Rs. 425 crore from Power Grid Corporation of India. Canara Bank jumped nearly 7% after its quarterly net profit for the March quarter rose 55% year-over-year.
Larsen & Toubro closed up 0.79% on reports that it is eyeing strategic stakes of up to 26% in private power projects. Welspun Gujarat Stahl Rohren surged up 9.65% after it announced the commissioning of its first manufacturing facility outside India in Little Rock, Arkansas, US.
Airline stocks such as Kinfisher, JetAirways and Spice Jet closed firm despite negative news flow on swine flu outbreak. Among hotel stocks, Hotel Leela Venture and Indian Hotels closed firm, but EIH Associated Hotels, EIH and Taj GVK closed in negative terrain.
Reliance Industries rallied 3.80% after it has signed gas sale and purchase agreements with 11 power plants including Reliance Infrastructure. State Bank of India rose 3.04% after it has cut interest rates on education loans for new borrowers.
Unitech rose 2.68% after the US-based foreign institutional investor Morgan Stanley bought an additional 5.1% stake in the company through qualified institutional placement.
Sterlite Industries soared 6.75% despite reporting a 55% year-over-year decline in its consolidated net profit for the March quarter. India Infoline closed up 0.86% despite reporting a 64% fall in its quarterly net profit.
Infrastructure Development Finance surged up 12.76% and Dabur India rose 1.77% on announcing better-than-expected results for the March quarter. Reliance Communications advanced 3.57% after it has bought back 247 zero coupon foreign currency convertible bonds worth Rs. 125 crore from the international markets.
Steel-maker Tata Steel gained 1.60%, SAIL added 1.20% and JSW Steel rallied 6.69% amid reports that India's steel consumption could rise nearly 2% in 2009.
Maytas Infra fell 2.87% on reports that it could divest some projects nearing completion to raise funds to complete other assignments. Bharat Electronics added 2.19% on reports about its investment plans in solar photovoltaic business.
Unitech topped the traded value with a turnover of Rs.321.40 crore followed by Reliance (Rs.185.70 crore), ICICI Bank (Rs. 184.24 crore), Reliance Industrial Infrastructure (Rs.165.26 crore) and Reliance Capital (Rs.154.45 crore). Unitech led the traded volume with trades of around 74.40 million shares followed by Jaiprakash Associates (11.05 million), Suzlon Energy (11.05 million), Reliance Natural Resources (9.79 million) and Indiabulls Realestate (7.94 million).
The market will remain closed for trading on Thursday because of polling in Maharashtra, and then again on Friday on account of World Labour Day.
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