RTTNews - Encouraging news flow on the earnings front, positive sentiment in Europe for the third straight day and finance minister Pranab Mukherjee's talk about disinvestment in PSU's and assurance that India will return to a path of fiscal prudence, lifted the Indian market sharply up on Wednesday for the second day in a row.
After opening higher at 13,917, the BSE Sensex rose to a high of 14,300 before finishing at 14,253, up nearly 400 points or 2.88% from its previous close.
Likewise, the S&P CNX Nifty rose 122 points or 2.97% to 4,233, while the small-cap and the mid-cap indexes on the BSE jumped over 4% each. The market breadth on the BSE was extremely positive, as gainers outnumbered losers by 2038 to 557 , with 89 stocks closing unchanged.
Sector-wise, the realty index surged up nearly 8%, metal stocks rallied over 5% and power, capital goods and public sector stocks ended up with over 4% gains. On the other hand, IT and FMCG stocks ended with modest gains.
Hindalco(up 8.22%), Jaiprakash Associates(up 7.74%), DLF(up 7.18%), Hero Honda Motors(up 6.44%), BHEL(up 6.31%), Tata Steel(up 6.14%), Tata Motors(up 5.50%), Reliance Communication(up 5.12%) and Reliance Infrastructure(up 4.79%) were the top gainers. Infosys was only the exception which ended down 0.85% in the red.
Market heavyweight Reliance Industries advanced 3.52% amid reports that it is seeking to sell fuel from its Gujarat refinery in the U.S. ONGC gained 3.33% and Cairn India added 5.12% after crude oil price rose above $60 a barrel in Asian trading on Wednesday, snapping three days of declines.
Wine maker and distributor Indage Vintners added 1.25% on reports that it is scaling down operations in most regions outside its home base in Maharashtra to survive a deep financial crisis. Maytas Infra rallied 4.47% after its government- appointed board claimed to have managed to put the crisis-hit company on a fast track revival mode.
Tata Steel surged up 6.14% on reports the first stage of its joint venture Benga coal project in Mozambique will start production in 2011.Steel stocks such as SAIL and JSW Steel also rose over 5% each after the steel ministry said that steel consumption has risen 5.2% during the first quarter of the current financial year.
Hindalco soared 8.22%, NALCO advanced 5.03% and Hindustan Zinc climbed 7.09% on the back of firm metal prices on the LME. South Indian Bank gained 4.24% after its net profit rose 56% year-over-year in the June quarter.
IDBI Bank added 5.60% after reporting a 7.5% rise in its June-quarter net profit and Power Finance Corporation gained over 5% on the back of a 87% increase in its quarterly net profit.
Ashok Leyland rose 1.73% on reports that it is set to grow further with the opening of four more outlets at Ludhiana, Moga, Chandigarh and Bathinda. 3i Infotech advanced 4.42% after it agreed to buy out Elegon Technologies from its Chinese joint venture partner Yucheng Technologies.
Ashapura Minechem was locked at the 5% upper circuit limit after its subsidiary in UAE divested its entire shareholding and consequently withdrawn from 'Ashapura Zawawi Minerals LLC', a joint venture company incorporated in the Sultanate of Oman.
Bajaj Auto Finance was locked at the 20% upper circuit limit after reporting a fivefold jump in its net profit for the first quarter ended June. Infotech Enterprises jumped 15% after its net profit for the June quarter more than doubled on a standalone basis.
Shipping stocks soared after the Baltic Exchange's main sea freight index, which tracks freight rates of dry commodities, jumped over 4% on Tuesday. Great Eastern Shipping rose over 10%, Essar Shipping surged up 14.17%, Mercator Lines soared 13.19% and Shipping Corporation of India rallied 5.83%.
Crompton Greaves added 2.91% and Century Textiles & Industries advanced 3.45% on the back of execution of block deals on the stock exchanges.
Larsen & Toubro jumped 4.19% and Bajaj Auto gained 2.79% ahead of the announcement of their results on Thursday. IT stocks underperformed the broader market despite better-than-forecast earnings from the the world's biggest chip maker Intel. TCS rose 3.43%, Wipro gained 3.15% and HCL Technologies added 2.23%, while Infosys and Tech Mahindra ended in the red.
Elsewhere, the other Asian markets ended sharply higher for a second day on Wednesday on optimism about the global economy, European stocks were trading firm in early trading and U.S. stock futures rose on the back of Intel Corp's better-than-forecast sales outlook and a rise in commodity prices.
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