RTTNews - After falling over 2% in early trading on global economic worries, the Indian market recovered sharply on Tuesday, helped by news that the World Bank has revised India's growth rate upwards to 5.1% from earlier forecast of 4% for 2009. Despite a more pessimistic outlook for global growth, it has forecast India to grow 8% in 2010, overtaking China's expected 7.7% growth. Short covering ahead of June series derivatives contracts expiry also helped the recovery.

The BSE Sensex opened lower at 14,148 and touched a low of 14,017 in early trading before recovering sharply to finish flat at 14,324, down 2 points or a modest 0.02%. Meanwhile, the S&P CNX Nifty rose 12 points or 0.28% to 4,247 and the BSE mid-cap index gained 0.24%, but the BSE small-cap and the broad-based BSE 500 indexes showed modest losses. The market breadth on the BSE was negative, as decliners outnumbered advancers by 1455 to 1116, with 68 stocks closing unchanged.

Sector-wise, the oil/gas index advanced 2.62% led by market heavyweight Reliance Industries, which rose a sharp 3.26% after falling over 17 percent since last Monday, when it received an unfavorable court ruling in a gas supply dispute with RNRL. Oil explorer Cairn India and ONGC also closed higher despite weakness in crude oil price.

The public sector index rose over 2% and the power index gained 1.31%, while healthcare, capital goods and auto stocks ended with modest losses. Banking, metal and consumer durable stocks bore the brunt of the selling.

Among the major decliners, ICICI Bank tumbled 4.05%, HDFC Bank, Hindalco and ITC fell over 3% each, Sterlite declined 2.82%, DLF lost 2.06% and Larsen & Toubro ended down 1.62%. Infosys, Maruti Suzuki, TCS, Bharti Airtel, Mahindra & Mahindra and Tata Steel were the other prominent losers.

On the other hand, Grasim and ONGC rose over 3%, Tata Motors, NTPC and HDFC added over 2% each and Tata Power, BHEL, Reliance Infrastructure and Ranbaxy ended up more than 1% each. SBI, ACC, Hindustan Unilever and Jaiprakash Associates also ended in positive terrain.

In the telecom sector, Bharti Airtel edged down 0.76% and Reliance Communications slipped 0.12% amid reports they are competing with the French telecom group Vivendi to acquire Kuwait-based Zain Group's African business valued at $12 billion.

IFCI advanced nearly 3% on reports that it is still open to the idea of inducting a strategic investor by as early as July-end or August. Maytas Infra was locked at the 5% lower circuit limit on reports that IFCI has reduced its stake in the company to 8% from 17.42%.

NTPC gained 2.54% on reports that it has agreed to sign the gas purchase agreement with Reliance Industries at the government-stated price of $4.2 per million British thermal units for its gas-based power plants without prejudice to its court case over Kawas and Ghandhar projects.

Power Grid Corporation of India ended up a modest 0.80% on reports it plans to raise Rs 3,000 crore by the end of this financial year or early next year through a follow-on public offer.

Tech Mahindra closed up 0.99% after its board decided to raise funds through the issue of 1.36 crore shares to qualified institutional investors. SAIL edged up 0.47% on reports that it will reduce its workforce by about 15% or 20,000 by 2011.

Pantaloon Retail India fell 1.20% ignoring reports about a 14% growth in its May sales from its value, home and lifestyle retailing segments. KEC International was locked at the 5% upper circuit limit after it bagged three contracts worth Rs 110 crore, one in Peru and the other two in the state of Chattisgarh.

Vishal Information Technologies fell 3.43% after its board recommended a 1: 2 bonus issue to its shareholders. AIA Engineering ended up 0.34% and Usha Martin gained 1.05% on the back of block deals executed on the stock exchanges. Gujarat Industries Power fell 3.69% after its FY09 net profit dropped nearly 17% year-over-year.

IRB Infrastructure Developers jumped nearly 6% on saying that it emerged as the lowest bidder for a highway project in Rajasthan. Karur Vysya Bank added 1.22% after the company proposed to raise funds through a qualified institutional share placement.

On the BSE, Reliance topped the traded value chart with a turnover of Rs 358.13 crore followed by Suzlon (Rs 232.90 crore), Reliance Capital (Rs 226.58 crore), Unitech (Rs 178.44 crore) and ICICI Bank (Rs 172.26 crore).

Unitech led the traded volume chart with trades of over 23 million shares followed by IFCI (22.66 million), Suzlon (22.08 million), Reliance Natural Resources (16.7 million) and Ispat Industries (13 million).

Elsewhere, the other Asian markets saw a broad-based sell-off on economic worries, European stocks were trading flat with marginal gains in early trading and the U.S. stock futures point to a slightly higher opening on Wall Street Tuesday morning following sharp losses in the previous session. Light sweet crude oil futures for August delivery was last trading at $66.98 a barrel, recovering from the low of $66.37 after closing Monday's session at $66.93.

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