RTTNews - Rising global markets, budget expectations and hopes of improvement in monsoon rains by the first or second week of July helped the Indian market bounce back sharply on Friday after considerable amount of profit taking in 8 of the 11 previous trading sessions. Sharp gains in market heavyweights Reliance Industries, Larsen & Toubro and ICICI Bank helped the market end near the day's high.
In another development, Mahindra Holidays and Resorts India, which came out with its initial public offering after a four-month long lull in the domestic primary market, got subscribed over 3 times, boosting investor sentiment.
The BSE Sensex opened higher at 14,374 and saw some sideways movement before rising sharply to finish near the day's high at 14,765, up 419 points or 2.92% from the previous close. Likewise, the S&P CNX Nifty rallied 134 points or a sharp 3.15% to 4,375, the BSE small-cap index rose 1.89%, the broad-based BSE 500 index advanced 2.74% and the mid-cap index moved up 2.40%.
On the BSE, the market breadth was extremely positive, as advancers outnumbered decliners by 1689 to 937, with 107 stocks closing unchanged. Stocks across the sectors with the exception of the healthcare sector ended sharply higher. Banking, capital goods, IT, consumer durable, realty and oil/gas stocks led the gainers.
Twenty-six out of 30 Sensex stocks closed in positive terrain. Among the major gainers, ICICI Bank jumped nearly 8%, Sterlite Industries soared over 6%, Larsen & Toubro rallied 5.47%, TCS advanced 4.35% and Infosys ended up around 4%.
Reliance Communication, Reliance Industries, BHEL, Maruti Suzuki, State Bank of India, DLF, Wipro, HDFC, Hindustan Unilever, Hindalco, HDFC Bank, ACC and Reliance Infrastructure were the other prominent gainers with over 2% gains.
On the other hand, Sun Pharma plunged over 12% on news that the USFDA on Thursday seized 33 drugs from its subsidiary Caraco Pharmaceutical Laboratories' facility at Michigan in Detroit, Farmington Hills, and Wixom. Ranbaxy Laboratories tumbled 4.37% on reports the United Food and Commercial Workers Union in the U.S. has raised objections to retailer Wal-Mart selling drugs manufactured by Ranbaxy. Tata Steel fell 2.53% on disappointing FY09 results and Mahindra & Mahindra ended down a modest 0.73%.
Oil explorer Reliance Industries and Cairn India rose around 4% each and ONGC gained 1.53% after crude oil price held above $70 a barrel in Asian trading on Friday. Unitech edged up 0.37% on reports that it sold one of its school plots in Gurgaon, near Delhi to Dubai-based GEMS Education for Rs 26 crore
Gemini Communication ended down 0.44% on a volume of 20.28 lakh shares(10 times to its 2-week daily average volume)after it acquired a 51% stake in privately held Sanat Technologies for an undisclosed amount.
Areva T&D advanced over 2% after it bagged an order worth Rs 1200 crore from steel major Jindal Steel & Power for a power project. GAIL (India) added 1.72% after the company decided to invest Rs.7,600 crore on two pipeline projects linking Karnataka to the National Gas Grid.
Kirloskar Brothers jumped 7.06% on reports that it is scouting for acquisitions in the U.S., Europe and also the Far East to emerge as one of the top five makers of pumps in the world. Smart card maker Bartronics India soared nearly 6% on speculation the company would gain a big order for a government initiated project to provide unique identification numbers to citizens of the country.
State Bank of Mysore edged down 0.84% after it reduced its benchmark prime lending rate and deposit rates by 50 and 25 basis points, respectively with effect from June 29. Tech Mahindra ended down 0.71% despite entering into a strategic alliance with WIN pIc, a leading provider of interactive mobile information and entertainment services, to develop WIN' next generation mobile platform.
Deccan Chronicle Holdings ended up 0.81% despite reporting a nearly 50% drop in its FY09 net profit and Max India rose 2.60% even after reporting a net loss of Rs 6.76 crore for the fourth quarter ended March.
Karur Vysya Bank fell 2.27% after it decided to place a proposal seeking consent of the shareholders for the issue of equity shares by way of qualified institutional share placement for raising up to Rs.500 crore. J Kumar Infraprojects hit the 5% upper circuit limit on bagging two orders aggregating Rs 8.56 crore for piling work. Videocon Industries climbed over 8% amid reports its chairman and managing director Venugopal Dhoot would sell his 3% personal stake in Great Offshore to ABG Shipyard.
Elsewhere, the other markets across Asia continued their northward momentum for the second successive day on increasing optimism about global recovery and European stocks were mostly higher in early trading, while U.S stocks futures point to a slightly lower opening Friday morning following gains in previous session.
Light sweet crude oil price for August delivery extended its gains to above $71.14 a barrel due to geopolitical factors and the dollar's weakness.
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