RTTNews - Rising sharply for the second straight session, the Indian market closed at a fresh 52-week high on Monday, boosted by strong global cues and consistent buying by foreign funds. Auto stocks led the market higher after reporting robust sales in July, followed by realty, metal, power and oil/gas stocks. However, consumer durable and defensive FMCG stocks ended in the red on concerns about rural demand due to the slow progress of monsoon rains.
On the economic front, while official data showed that exports from India dropped for the ninth straight month in June to $12.8 billion from $17.73 billion in the same month last year, the Markit Purchasing Managers' Index (PMI), based on a survey of 500 companies, which measures manufacturing activity, held steady at 55.30 in July, from 55.34 in June, rising from a trough of 44.37 in December.
After trading range bound till mid-session, the BSE Sensex rose to a high of 15,963 before finishing at 15,924, up 254 points or 1.62% from its previous close. Likewise, the S&P CNX Nifty rose 75 points or 1.62% to 4,711, the broad-based BSE 500 index rose 1.64%, the small-cap index advanced 1.74% and the mid-cap index added 2.36%. On the BSE, gainers outnumbered losers by 1761 to 950 ,with 72 stocks closing unchanged.
Among the top gainers, Hindalco Industries soared nearly 8%, Mahindra & Mahindra jumped 6.88%, Reliance Communication climbed 5.17%, BHEL rallied 5.15%, Tata Steel advanced 4.52%, Tata Power rose 4.31%, Jaiprakash Associates gained 4.05% and Maruti Suzuki added 3.98%.
Sterlite, Reliance Industries, DLF, Tata Motors, ICICI Bank, Grasim Industries, SBI, Reliance Infrastructure and ACC were the other prominent gainers. On the other hand, Hindustan Unilever, ITC, HDFC Bank and HDFC ended in the red.
Hindustan Lever fell 2.25% after data from AC Nielsen revealed that the company has lost share in both volume and value terms in the oral care and hair care market to smaller players like Dabur and CavinKare.
JK Tyre ended almost unchanged amid reports that it held preliminary discussions with the Tamil Nadu government to set up a car radial facility near Chennai. Ambuja Cements slipped 0.32% after reporting a modest rise in cement production for July compared to the year-ago period.
IT stocks closed mostly higher amid reports that they are evincing interest for a Rs.2,500-crore HRMS (human resource management system) outsourcing contract from Indian Railways. TCS rose 0.84%, Infosys gained 0.58% and Wipro edged up 0.08%, but Mahindra Satyam ended down 1.15%.
Reliance Industries (RIL) advanced nearly 3% after petroleum minister Murli Deora asserted in the Lok Sabha on Monday that the government has nothing to do with the private dispute of the two industries or industrialists. RNRL, which is fighting a dispute with RIL over gas supply from Krishna- Godavari basin, also closed up 0.66%.
Oil explorer Cairn India rose 3.39% and ONGC closed up 1% after crude oil price rose to a one-month high near $71 a barrel in Asian trading on Monday amid encouraging manufacturing data from China and firmer Asian and European equities.
Larsen & Toubro edged up 0.85% after it bagged two contracts worth Rs.5,300 crore from state-run ONGC. Bharti Airtel rose a modest 0.13% after it extended the time period for exclusive talks with MTN for a merger by one month to August 31.
Chemplast Sanmar was locked at the 10% upper circuit limit on reports that it has received approval from Tamil Nadu's environment authority to restart work on a coal-fired power plant in Mettur.
GMR Infrastructure ended up 0.74% despite announcing a 70% year-over-year dip in its June-quarter consolidated net profit due to higher interest costs and depreciation charges. Reliance Capital added 2.13% even as it reported a 56% drop in net profit to Rs.153.29 crore for the quarter ended June compared to Rs 345.3 crore in the year-ago period.
Britannia Industries fell 1.94% after reporting a 17% rise in its June-quarter net profit. Sun Pharmaceutical Industries moved up 0.40% after it settled its dispute with US-based pharma firm MedImmune for marketing a generic version of latter's Ethyol, a drug used in the treatment of head and neck cancer.
Bajaj Auto soared 6.52% on speculation that it will launch its second new motorcycle for the year, probably in the 100-125cc segment. The company said that it plans to step up its domestic production by about 25 percent in August and forecast high double digit motorcycle sales growth here onwards.
Divi''s Laboratories tumbled 4.57% after its June-quarter net profit plunged 95% year-over-year to Rs. 4.29 crore. Aurobindo Pharma jumped 6.96%, Aban Offshore climbed 9.74% and JK Cement rose 1.25% on the back of better-than-expected quarterly earnings. On its debut, Excel Infoways ended the session at Rs.95.65, a premium of 12.50% over the initial public offering price of Rs.85.
Elsewhere, the rest of the Asian markets, except Japan and Taiwan, ended in positive territory buoyed by positive economic data in China and continuing optimism about a global recovery and European stocks were trading at a new high for the year in early trading, led by banks, miners and oil stocks, while U.S stock futures point to a higher opening on Wall Street Monday morning amid higher commodity prices and earnings.
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