RTTNews - The Indian market cut its early loss and ended sharply higher on Friday ahead of the swearing in ceremony of the incoming government later in the day. Prime Minister Manmohan Singh will be sworn in for a second term along with 19 other ministers at the Rashtrapati Bhavan on Friday evening, the Prime Minister's Office (PMO) has announced.
Favorable forecasts for the country's annual monsoon rains by the India Meteorological Department, consistent foreign flows and emerging consensus that the Indian economy and corporate earnings might be close to the bottom, helped in the revival of investor sentiment. Value buying at lower levels and short covering ahead of derivatives contract expiry next week also helped the market end near the day's high.
Meanwhile, the rupee continued its upward march for the sixth consecutive day and breached the crucial 47-level against the U.S. currency for the first time after December 19, 2008, on sliding dollar in the overseas markets.
Mirroring the week global cues, the BSE Sensex opened lower at 13,664 and fell to a low of 13,611 before resuming its up trend. After hitting the day's high of 13,937 in late trading, the benchmark pared some of its gains towards the closing to settle at 13,887, up 151 points or 1.10% from its previous close. The S&P CNX Nifty rose 28 points or 0.66% to 4,238.
The mid-cap index on the BSE gained 1.75% and the small-cap index rallied 3.19%. The market breadth was extremely positive. Advancers outnumbered decliners by 2135 to 598 and 49 stocks closed unchanged. Sector-wise, capital goods, banking and healthcare stocks closed with notable gains, but consumer durable, auto, realty and metal stocks ended in the red. Stocks in the oil/gas, IT and power sectors ended with modest gains.
Among the major gainers, Larsen & Toubro jumped 4.73%, ICICI Bank rallied 4.54%, Reliance Industries advanced 3.13%, NTPC rose 1.93% and Sun Pharma gained 1.59%. Infosys, HDFC, State Bank of India, Reliance Infrastructure, BHEL and Bharti Airtel also ended sharply higher.
On the other hand, Sterlite Industries slumped 4.32%, Mahindra & Mahindra tumbled 3.57%, Tata Motors retreated 3.29% and Hindalco ended down 2.53%. The other major decliners include DLF, TCS, Grasim, Reliance Communication, ACC and Wipro.
Oil explorer ONGC fell 2.74% after rising 8.41% in the previous session. However, Reliance Industries rose 3.13% and Cairn India ended up 0.73% State-owned oil companies HPCL and IOC ended in negative terrain after Thursday's sharp surge, while BPCL added 0.67%.
Dolphin Offshore Enterprises was locked at the 10% upper circuit limit on bagging a new order worth $18.45 million from Leighton India for hiring of DP/DSV vessel on chartered basis for a period of 6 months. Madhucon Projects jumped nearly 5% on securing a new contract worth Rs.196.24 crore from Northern Coalfields (NCL) for an infrastructure-related work.
IRB Infrastructure rose 1.95% after it announced a 54% rise in its group net profit for the 12 months to March. Gammon Infrastructure was locked at the 5% upper circuit limit on reports that it will raise about $100 million through a share sale.
National Thermal Power Corporation added 1.93% after reporting a consolidated net profit of Rs.8, 092.56 crore for the FY09, up from Rs.7, 469.92 crore last year. Ranbaxy Laboratories ended down 1.23% after it acquired trademarks, product dossiers and marketing rights from Ochoa Laboratories for its entire range of dermatological and lifestyle products.
Reliance Capital rallied 5.34% on reports that it plans to sell between 10-26% of its life insurance unit in the next four months. Federal Bank plunged 8.39% despite reporting a 11% rise in its net profit for the fourth quarter ended March.
Karnataka Bank surged up 14.14% after Reliance Mutual Fund mopped up a 3.3% stake in the bank through two bulk deals on the Bombay Stock Exchange. Redington India was locked at the 20% upper circuit limit after its FY09 standalone net profit rose 20% year-over-year.
Deepak Fertilizers climbed 18.57% on reporting a 27% rise in its net profit for the fourth quarter ended March. PTC India rallied 7.85% amid reports the company is raising around $75 to $105 million through qualified institutional placements in the next 2 days.
Elsewhere, the other major markets across the Asia-Pacific region ended in the red on Friday, mirroring the losses on Wall Street amid concerns about the pace of global economic recovery. European shares were slightly positive and US stocks were looking to close out a lackluster week on a high note Friday.
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