RTTNews - Strong buying in IT stocks on the back of better-than-expected U.S. economic data and short covering a day before the expiry of current month derivatives contracts helped the Indian market end higher for the 5th straight session. Mid-cap and small-cap stocks received widespread buying support.
Investors shrugged off a disappointing report on six infrastructure industries. The growth in six core infrastructure industries- petroleum refinery, crude oil, coal, electricity, cement and finished steel, fell to 1.8% in July from 5.1% in the year-ago period and an upwardly revised 6.8% in June, government data showed on Wednesday. The infrastructure sector accounts for 26.7 percent of India's industrial output.
The BSE Sensex moved in a narrow range of 15,831- 15,696 before finishing at 15,770, up 81 points or 0.52% and the S&P CNX Nifty rose 21 points or 0.46% to 4,681. The BSE mid-cap index moved up 1.10% and the small-cap index advanced nearly 2%, outperforming the benchmarks.
Besides IT stocks, realty, healthcare, power, oil/gas and metal stocks led the market higher, while defensive FMCG, consumer durable and banking stocks ended on a subdued note. The market breadth on the BSE was fairly positive, with 1943 gainers versus 851 losers.
Infosys(up 4.07%), Sterlite Industries(up 3.92%), TCS(up 3.75%), Wipro(up 2.34%), Reliance Communication(up 1.98%), Tata Motors(up 1.71%), Tata Power(up 1.70%), DLF(up 1.47%), Sun Pharma(up 1.33%), ACC(up 1.22%) and Reliance Industries(up 0.78%) were the top gainers.
On the other hand, Hindustan Unilever fell 2.29%, HDFC Bank gave off 1.79%, Hero Honda Motors eased 1.19%, Grasim Industries declined 0.98%, Maruti Suzuki shed 0.94%, ITC lost 0.89% and ONGC edged down 0.88%.
Hindalco Industries, Bharti Airtel, SBI, BHEL and NTPC also ended in the red.
Bharti Airtel slipped 0.45% on reports it has secured $5 billion in funding from a consortium of international and local banks. Maruti Suzuki India fell 0.94% on reports it eyes a a 10 percent revenue growth in FY10.
Valecha Engineering pared early gains and closed unchanged on reports it has bagged contracts worth Rs 172 crore. United Breweries rose 1.77% on reports that is has reached an informal understanding with beer giant Heineken to settle differences over the Dutch firm's role in the Indian company.
Voltas rose 1.63% after it hiked its stake in Rohini Industrial Electricals to 67.33% from 51%.Reliance Communications advanced nearly 2% after it launched three novel initiatives, aimed at increasing mobile telecom and Internet penetration across rural India.
EIH edged up 0.76% after it signed a 25-year concession agreement with Delhi International Airport to develop and manage in-flight catering facilities at the airport.
Kale Consultants added 3% after the International Air Transport Association has chosen the company for supplying an industry- wide interline settlement platform. Tilaknagar Industries gained 2.43% after it fixed 3rd September as the record date for a 2:1 bonus issue.
Motherson Sumi Systems surged up over 11% after its unit bagged an order worth 500 million euros from German customers - Volkswagon and BMW. Gujarat NRE Coke rallied 7.20% on reports that it will not increase its bid for acquiring Australia's Rey Resources.
Educomp Solutions rose 3.62% after its board approved sub-division of its existing equity shares of the face value Rs.10 each into five equity shares of the face value of Rs.10 each. Thermax added 1.78% after it signed a joint venture agreement with U.S. firm SPX Corp to provide equipment and services for India's power sector.
Gayatri Projects hit the 5% upper circuit limit after it raised Rs 18.50 crore through a preferential allotment of shares to Reliance Mutual Fund. Phoenix Mills jumped 11% and Madras Cement rose 1.46% on the back of block deals executed on the stock exchanges.
Kavveri Telecom Products was locked at the 5% upper circuit limit after its subsidiary Kavveri Telecom Infrastructure signed a 10-year agreement with one of the major cellular operators for providing in-building wireless solutions on a pan-India basis.
Elsewhere, the stock markets across the Asia-Pacific region advanced on Wednesday, led by sharp gains in Chinese shares, European stocks drifted lower on profit taking, dragged down by commodity stocks, and U.S. stock futures are trading in a narrow range ahead of the release of economic reports on durable-goods orders and new-home sales.
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