Thursday, the Indian market is trading firm following favorable global cues after upbeat data on U.S. durable goods orders for February and US new home sales fueled hopes of an economic recovery in the world's largest economy. Traders now await the release of inflation report.
The BSE Sensex opened higher at 9,740 and rose to a high of 9,834 in early trading. However, the index has pared some of its gains since then and is now trading at 9,794, up 126 points or 1.31%, while the S&P CNX Nifty is trading at 3,022, up 1.25%.
On the BSE, the market breadth is extremely positive, with 995 gainers compared to 481 stocks that are declining. The mid-cap and the small-cap indexes are rising by less than 1% each and the broad-based BSE 500 index is up 1.11%.
Among the major gainers, BHEL is climbing 7.46%, Larsen & Toubro is rising 2.88%, DLF is gaining 2.69%, Tata Steel is up 2.61% and Tata Power is moving up 2.13%.
Tata Motors, HDFC, HDFC Bank, ITC, Reliance Infrastructure, Grasim Industries and Wipro are the other prominent gainers.
Twenty-eight out of 30 Sensex stocks are trading in positive territory, while Mahindra & Mahindra and Sun Pharma are trading in the red.
Stocks across the sectors are trading higher. Stocks of capital goods, power and metal companies are leading the rally, while IT, technology and consumer durable stocks are showing modest gains.
Union Bank of India is rising 2.61% even as its chairman and managing director M V Nair reportedly said that its net profit growth for the fourth quarter would not be as buoyant as the previous three quarters of the current financial year. Vijaya Bank is gaining 3.43% after the government proposed to subscribe a sum of around Rs.1200 crore in innovative Tier I Capital instruments in the bank in two tranches.
Essar Oil is jumping more than 5% on reports that its arm Essar Energy Overseas will pick up a 50% stake in Kenya Petroleum Refinery in Mombasa. Tata Consultancy Services is up 0.64% on reports that it expects revenues of about Rs.400 crore in a year from its micro finance solutions for banks and financial services firms.
Tata Motors is up 1.28% even as global rating agency Standard & Poor's downgraded its corporate credit rating to 'B+' from 'BB-' on account of deteriorating cash flows and an adverse operating environment.
SpiceJet is up 1.85% after low-cost operator GoAir denied reports that it was in talks with SpiceJet for a possible merger. Reliance Infrastructure is up 1.34% following reports that it is delaying its foray in the real estate industry.
Bharti Airtel is adding 1.37% on reports that it has reached a deal with Australia Japan Cable (AJC) to interconnect their current and future networks at the pacific Island of Guam.
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