RTTNews - Considerable amount of short covering after a sharp loss in the previous session and selective buying in battered index heavy weights at lower levels amid some improvement in global investor sentiment helped the Indian market bounce back sharply on Tuesday.
Rising from the day's lows of 14,740 in early trading, the BSE Sensex hit a high of 15,135 in the afternoon before finishing at 15,035, up 250 points or 1.69% from its previous close. Likewise, the S&P CNX Nifty rose 71 points to 4,459 and the BSE mid-cap and the small-cap indexes rallied over 2% each.
The market breadth on the BSE was extremely positive, as gainers outnumbered losers by 1721 to 906. Sector-wise, capital goods, realty, metal and power stocks led the market higher, while IT, consumer durable, healthcare and oil/gas stocks ended with modest gains.
Among the top gainers, Hindalco Industries surged up 6.08%, Jaiprakash Associates and Larsen & Toubro rallied nearly 5% each, Hindustan Lever advanced 3.45% and Tata Steel rose 3.14%.
HDFC, DLF, Mahindra & Mahindra, Bharti Airtel, BHEL, HDFC Bank, Reliance Communication, ICICI Bank, Reliance Infrastructure, Maruti Suzuki, ONGC and SBI were the other prominent gainers.
On the other hand, Infosys fell 0.59%, Grasim slipped 0.35%, TCS edged down 0.19% and Sun Pharma ended down 0.19%.
Cairn India rose 0.91% on reports that it is was on the verge of starting oil production in the western state of Rajasthan. Reliance Industries ended up 0.35% and ONGC advanced 1.46%, buoyed by firm crude oil price in Asian trading on Tuesday.
HCL Infosystems soared 6.26% after the company decided to raise Rs.825 crore to fund its growth plans. TVS Motor added 2% on reports that it will see robust revenue growth and substantial improvement in profits in the current fiscal year.
NTPC gained 1.13% on reports that it will make a follow-on public issue next year. Numeric Power Systems hit the 20% upper circuit limit after the company proposed to issue bonus shares. MVL rose 2.37% after its board approved sub-division of its existing equity shares.
HCL Technologies said the bankruptcy filling by U.S.-based Reader's Digest Association will not have any impact on the company as of now. However, the stock closed down 0.85%.
Everonn Systems India gained 1.17% on the back of a block deal on the NSE. Kiri Dyes and Chemicals added 2.63% on news that it is looking for an overseas acquisition. Ahluwalia Contracts rallied 4.13% on bagging new contracts worth Rs.216 crore since May
Shree Renuka Sugars jumped 6.46% on receiving approval from the commodity market regulator for buying a 5% stake in National Commodity & Derivatives Exchange. Bharat Forge climbed 8.50% after its board approved raising up to $150 million through the issue of equity or equity linked securities.
Elsewhere, the bounce in China's Shanghai Composite index helped markets in Hong Kong, Japan, South Korea and Singapore end higher and European stocks showed notable gains across the board on the back of higher commodity prices and stronger-than-expected data from Germany's ZEW survey.
U.S. stock futures pointed towards a higher opening on Wall Street Tuesday morning ahead of the release of crucial reports on new housing starts and producer prices.
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