RTTNews - Amid encouraging overseas cues and short covering after over 5% loss since last Wednesday, the Indian market ended sharply higher on Friday near the day's high. While better-than-expected economic data from the U.S and value buying by funds generated buying interest, intermittent profit taking caused considerable volatility ahead of the weekend. The benchmark Sensex, however, snapped its 14-week winning streak.

After trading in positive territory for most part of the session, the BSE Sensex slipped into the red for a while in the afternoon before bouncing back from the day's lows. The Senex hit a high of 14,559 in late trading before finishing at 14,522, up 256 points or a sharp 1.80% from its previous close. The S&P CNX Nifty rose 62 points or 1.46% to 4,314.

The BSE small-cap index rose 0.82%, the broad-based BSE 500 index gained 1.73% and the mid-cap index added 1.68%. Advancers on the BSE outnumbered decliners by 1345 to 1293, while 66 stocks closed unchanged. Capital goods, realty, metal and IT stocks led the bounce-back.

Among the major gainers, Tata Steel, Larsen & Toubro, Tata Motors and Reliance Infrastructure jumped over 5% each, Jaiprakash Associates rallied 4.68% and Ranbaxy, ITC and Grasim Industries ended up over 3% each. Sterlite Industries, Infosys, BHEL, DLF, HDFC Bank and Reliance Communication were the other prominent gainers with over 2% gains.

On the other hand, NTPC fell 2.20%, Tata Power declined 1.06%, ACC eased 1.02%, Mahindra & Mahindra moved down 0.55%, Sun Pharma shed 0.24% and ONGC edged down 0.23%.

Infrastructure stocks such as GVK Power & Infrastructure and Gammon India added over 1% each on hopes the forthcoming budget will offer sops for infrastructure lending. IRB Infrastructure Developers added 3.62% after it emerged as the lowest bidder for a Rs.1,200 crore highway project in Punjab.

GMR Infrastructure rose 2.73% after its consortium emerged as the lowest bidder for a Rs.1,100 crore Chennai Outer Ring Road project in Tamil Nadu. Maytas Infra was locked at the 5% lower circuit limit on reports that the Andhra Pradesh govt. is mulling options of scrapping the controversial Rs 12,200-crore-Hyderabad Metro Rail Project deal with the Maytas Infra-led consortium

Union Bank of India gained 2.06% on reports about its foray into the mutual fund business by December. Yes Bank rallied 4.18% on reports that it eyes at least 40% loan growth in the current financial year and would recruit least 500 managerial staff between now and September to drive expansion in six key segments.

Telecom stocks closed mostly higher amid reports the government has fixed reserve price of Rs.4,040 crore for the auction of 3G spectrum. Reliance Communication rose 2.03%, Idea Cellular gained 2.69% and Bharti Airtel ended up 0.04%, but Tata Teleservices fell 2.98%

BHEL advanced 2.83% after the government reportedly mulled a 10% stake sale in the state-run engineering company. ITC added 3.50% on reports that its foods division will turn profitable this year due to strong growth in sales of biscuits and staples.

Hindalco Industries ended up 0.51% on reports that it is close to buying a coal mine in Australia for about $70-$80 million. Tata Steel jumped 5.85% following reports that it increased flat steel prices by up to Rs.750 a tonne in select regions in June.

Sugar stocks closed stronger across the board , shrugging off reports that the government would allow the import window for private traders to step up supplies and curb rising prices. Meanwhile, the Union Cabinet extended the stock limit order imposed on sugar traders for a further period of six months until January 8, 2010.

Texmaco rallied nearly 5% after the company proposed to raise funds by the issuance of equity shares or any other kind of securities. Zee News closed up a modest 0.77% after the company reported over 20% rise in its consolidated FY09 net profit.

DLF rose 2.56% on reports its retail arm would wind up its joint venture with Italian leather and luggage accessories firm Piquadro. Emami rose 1.95% on reports that it could merge its real estate business with Zandu Pharmaceutical Works. Zandu also ended up 0.26%.

TCS edged up 0.29% and Infosys added 2.88% amid reports that they are in talks with Switzerland-based bank UBS to buy its BPO and KPO units. Lupin gained 0.31% and Reddy's Laboratories closed up 0.51% after they received U.S. drug regulator''s nod for a generic drug.

On the BSE, Reliance topped the traded value chart with a turnover of Rs 281 crore followed by Suzlon (Rs 259.98 crore), Reliance Capital (Rs 240.35 crore), Unitech (Rs 222.80 crore) and Tata Steel (Rs 212.58 crore).

Cals Refineries topped the traded volume chart with trades of 74 million shares followed by Unitech (28.66 million), Suzlon (24.24 million), Reliance Natural Resources (20.64 million) and Ispat (19.45 million).

Elsewhere, the other Asian markets closed higher following a upbeat mood on Wall Street overnight, European stocks rose for a second day on gains in banks and energy stocks and the U. S. stock futures were higher on hopes the recession is easing.

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