RTTNews - After a flat closing in the previous session, the Indian market rose sharply to close near the day's high on Friday, buoyed by strong fund buying amid encouraging quarterly earnings from blue-chip companies and favorable global cues.
Reports on disinvestment in PSUs, widespread rainfall forecast in the next five days, the positive opening by the European markets and comments from the Finance Secretary Ashok Chawla that the government's record market borrowing program would not pressure bond yields and interest rates, also helped stocks close higher across the board.
While auto, banking and IT stocks led the rally with over 4% gains, oil/gas and healthcare stocks closed with modest gains The BSE Sensex opened higher at 14,326 and rose to a high of 14,801 before finishing at 14,745, up 495 points or 3.47% from its previous close.
Likewise, the S&P CNX Nifty jumped 144 points or 3.39% to 4,375, while the BSE small-cap and mid-cap indexes ended up around 2.4% each. On the BSE, advancers outnumbered decliners by 1832 to 825, with 82 stocks closing unchanged.
Among the top gainers, Reliance Infrastructure and Mahindra & Mahindra soared over 8% each, Jaiprakash Associates jumped 7.20% and ICICI Bank, Tata Motors, Hero Honda Motors, Hindalco and ITC climbed more than 6% each.
HDFC, Bharti Airtel, Tata Power, DLF, SBI, Infosys, HDFC Bank, Grasim Industries and Maruti Suzuki were the other prominent gainers. However, Sterlite, NTPC and Reliance Industries ended modestly lower.
NTPC ended down 0.15% amid reports that it has agreed to pay marketing margin to buy gas from Reliance Industries' D6 block in the KG basin. Sterlite edged down 0.42% on concerns about equity dilution and Reliance Industries slipped 0.05% due to uncertainty over a gas-sale dispute with RNRL.
Aptech rallied nearly 10% and Thomas Cook India(TCIL) rose 3% after Avalon Academy, the aviation training arm of Aptech, joined hands with TCIL to offer a specialized diploma program in travel & tourism.
Bajaj Holdings & Investment surged up 6.83% after its consolidated net profit for the three months ended June surged seven fold year-over-year. JM Financial added 1.83% on reports that it will launch an infrastructure-related private equity fund to raise up to $400 million.
State-run SAIL rallied 5.43% on reports that it will raise a large amount of money either through a follow-on public issue or a qualified institutional share placement. Sobha Developers rose 1.69% as it reportedly plans to sell part of its land parcels to raise around Rs.1,200-1,400 crore.
Swaraj Engines advanced 2.46% on the back of a 90% rise in its quarterly net profit. Colgate Palmolive added 2.01% after its net profit rose 43% year-over-year for the three months ended June.
Shipping stocks such as G E Shipping, Essar Shipping and Shipping Corporation of India, rose over 1% each after the Baltic Dry Index, which measures the cost of moving dry raw materials such as iron ore by sea, rose for the third straight day on Thursday.
Andhra Pradesh Paper Mills was locked at the 5% upper circuit limit after the company proposed to issue new shares on a rights basis. Anu's Laboratories rallied 7.12% after it fixed July 27 as the record date for a 1:1 bonus issue. Wyeth ended up 0.81% on the back of a 10% rise in its quarterly net profit.
Tyre companies such as CEAT rose 0.84%, Apollo Tyres surged up 7.14% and Goodyear India rallied 5.79%, buoyed by better-than-expected results from JK Tyres. JK Tyres soared 10.84% after its net profit doubled for the June quarter.
Crompton Greaves soared nearly 7% after reporting a 31% rise in its June-quarter consolidated net profit. Educomp Solutions advanced 3.22% after billionaire investor George Soros' hedge fund Quantum hiked its stake in the company to nearly six per cent.
Opto Circuits India ended down 2.65% despite reporting a 32% rise in its June-quarter consolidated net profit. India Infoline fell 2.04% after its June-quarter consolidated net profit grew a modest 4.32% year-over-year.
On the BSE, Satyam topped the traded value chart with a total turnover of Rs 326 crore followed by Reliance (Rs 244.90 crore), Reliance Capital (Rs 196.84 crore), ICICI Bank (Rs 189.91crore) and Educomp Solutions (Rs 188.16 crore).
Satyam led the volume chart with trades of around 37.65 million shares followed by Reliance Natural Resources (17.30 million), Cals Refineries (16.19 million), Ispat Industries (16.14 million) and Suzlon Energy (13.84 million).
Elsewhere, the other major Asian markets ended in positive territory, but below the day's high amid profit taking, European stocks were trading in positive trading in early trading led by banks, while U.S. stocks are set for a mixed opening Friday morning ahead of results from Bank of America and Citigroup.
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