RTTNews - Thursday, the Indian market has risen considerably after opening almost flat this morning. Short covering ahead of derivatives contracts expiry and an intra-day recovery in Asian stocks this morning are helping the market trade firm.
Signs of a significant cut in interest rates in the near term and the resumption of foreign fund buying on Wednesday also helped boost investor sentiment. Finance Minister Pranab Mukherjee said on Wednesday that he would unveil the budget in the first week of July and the government would continue to step up spending to support growth.
Among the major gainers, DLF is rising 3.15%, Reliance Communication is gaining 3.06%, Larsen & Toubro is up 2.94% and Mahindra & Mahindra is up 2.62%. Ranbaxy, ACC, HDFC, Tata Power, ITC, Wipro, NTPC and TCS are the other prominent gainers.
On the other hand, Reliance Infrastructure is losing 2.03%, Sterlite is moving down 1.72%, BHEL is down 1.36%, ONGC is edging down 0.53% and Maruti Suzuki is down 0.49%. State Bank of India, Hindustan Unilever, Hindalco and ICICI Bank are also trading in the red.
The BSE Sensex opened almost unchanged at 14,112 and dipped into the red within a few minutes. Since then, the index has recovered considerably and is now trading near the day's high at 14,278, up 169 points or 1.20% from its previous close. The S&P CNX Nifty is trading at 4,318, up 0.98%.
Stocks across the sectors are trading in positive terrain. The small-cap index on the BSE is up nearly 1% and the mid-cap index is rising 0.70%. The market breadth is positive, with 1603 advancers compared to 578 stocks that are declining.
Tata Motors is up 0.92% after it has successfully concluded an agreement for amendment of its bridge finance loan, extending the final maturity of $1 billion by 18 months up to 31st December 2010.
Bharti Airtel is rising 3.91% after losing significantly in the previous three sessions. Reports suggest that South Africa's MTN shareholders are skeptical about a merger proposal between the two companies.
Jindal Steel and Power is up 2.69% on announcing a 24% rise in its net profit for the fourth quarter ended March. Uco Bank is down 0.24% on reports that it has put on hold its plans for a follow-on-public issue to raise around Rs 4.50 billion.
Reliance Industries is adding 1.69% on reports that it has explored two more gas reserves near the D-6 oil block in the Krishna-Godavari basin. Novartis India is climbing 14.22% after its parent Swiss drug maker Novartis raised its open offer price to Rs.450 from Rs.351 to increase its shareholding in the Indian subsidiary to 90%.
Idea Cellular is losing 2.85% following reports that Malaysia's mobile phone company Axiata is planning to increase its stake in the company to a minimum 26% from 15%. Wockhardt is trading up 2.41% amid reports that it is in advanced talks to sell its German business, Espharma GmbH, to another German player, Lindopharm GmbH.
Britannia Industries is up a modest 0.89% despite reporting a 15% drop in its consolidated net profit for the financial year 2008-09. Infosys Technologies is gaining 2.23% on reports that it is chasing new contracts worth $100-250 million from its existing customer British Petroleum.
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