Friday, the Indian market is trading firm on increasing optimism that the global economy could recover earlier-than-expected.
The market opened on a subdued note after a sharp rally in the previous session. Within few minutes, it has recovered substantially and is now showing respectable gains due to positive sentiment following sustained buying by foreign funds. On Thursday, foreign funds bought shares worth Rs.1, 291 crore on a net basis, according to provisional data released by the Bombay Stock Exchange.
The BSE Sensex opened at 10,037 and rose to a high of 10,127 in early trading. However, the index has pared some of its gains since then and is now trading at 10,068, up 65 points or 0.65% over the previous close. Meanwhile, the S&P CNX Nifty is trading at 3,109, up 0.88%.
Among the major gainers, Ranbaxy Laboratories is rising 4.05%, Larsen & Toubro is gaining 3.58%, Tata Steel is adding 3.42%, State Bank of India is up 3.06% and Tata Motors is moving up 2.90%.
On the BSE, the market breadth is extremely positive, with 1042 advancers compared to 423 stocks that are declining. The broad-based BSE index is up 1.02%, the mid-cap index is rising 1.67% and the small-cap index is gaining 1.12%.
Reliance Communication, Sun Pharma, Hindalco Industries, Grasim Industries, ACC, ICICI Bank and Mahindra & Mahindra are the other prominent gainers.
However, Infosys, Wipro, Maurti Suzuki, BHEL and HDFC are trading in the red.
DLF is rising 1.45% on reports that it has reduced property prices by 20% in one of its upcoming housing projects in Gurgaon.
Stocks of steel manufacturers namely, SAIL, Tata Steel and JSW are trading sharply higher following reports that they have resumed normal production after cutting their output by as much as 40% in October.
Matrix Laboratories is locked in the 20% upper circuit limit on reports that Mylan could offer close to Rs.150 per share for acquiring the remaining 29 percent stake in Matrix.
IFCI is gaining 3.32% after the Hon'ble High Court of Delhi confirmed the reduction of share capital of the company by canceling 24,576,166 equity shares of Rs.10 each held by LIC of India.
Bang Overseas is up 0.82% after it has entered into 50:50 joint venture agreement with Aquarelle International, a Mauritius based company, for carrying on the business of manufacturing shirts and other garments in India for export and sale in the domestic market.
IT stocks such as Infosys and Wipro are trading weak after the world's second-largest technology-consulting firm Accenture reported a drop in quarterly sales and lowered its profit forecast for 2009 due to a stronger dollar and a slower global economy.
On Wall Street, all the major averages ended Thursday's session at their best closing levels in over a month after comments from US Treasury Secretary Geithner and strong demand for the 7-year note in the treasury market overshadowed the weak economic data related to GDP and weekly job loss numbers. The Dow Jones Industrial Average rose 2.25%, the Nasdaq Composite rallied 3.8% and the S&P 500 index moved up 2.33%.
The Indian ADRs also closed higher across the board. Among the major gainers, MTNL surged up 6.64%, Sterlite Industries jumped 5.5%, ICICI Bank soared 4.97%, Wipro rallies 4.27% and Infosys advanced 4.25%.
After closing at $54.34 a barrel in New York trading on Thursday, crude oil is now trading at $53.80 a barrel, down nearly 1% in Asian trading.
The forex market is closed today for a public holiday. The rupee closed at Rs.50.59/61 against the dollar on Thursday, off a high of 50.46, but up 0.3 percent from the previous close.
For comments and feedback: contact email@example.com