RTTNews - The Indian market wiped out its early loss and ended modestly higher on Tuesday , led by gains across the sectors, with the exception of oil/gas sector. Banking, public sector, power and metal stocks led the gainers, but the oil & gas index ended in the red amid loss by market heavyweight Reliance Industries.

While value buying after a 2% loss in the previous session, higher advance-tax payments reported by several companies for the April-June quarter and hopes that the government will announce more stimulus measures in the forthcoming budget to boost sagging economic growth helped the market recovery, apprehensions that the worldwide economic recovery may take longer to unfold, checked big gains.

Earlier in the day, the BSE Sensex opened lower at 14,788 and fell to a low of 14,621 before bouncing back. The Sensex hit the day's high of 15,022 in the afternoon before finishing at 14,958, up 82 points or a modest 0.55% from its previous close. Likewise, the S&P CNX Nifty rose 34 points or 0.75% to 4,518.

Second-line stocks made a strong comeback after recent losses. The small-cap and the mid-cap indexes on the BSE ended up over 2% each. The market breadth also improved considerably, as advancers outnumbered decliners by 1643 to 1006.

Twenty-three out of 30 Sensex stocks closed in positive terrain. Reliance Infrastructure(up 6.14%), State Bank of India(up 4.39%), Jaiprakash Associates(up 4.07%), Tata Steel(up 3.88%), Tata Power(up 3.66%), Sun Pharma(up 3.29%), Hindalco Industries(up 3.29%) and Reliance Communication(up 2.87%) wee the top gainers.

On the other hand, Sterlite Industries, Reliance Industries, Bharti Airtel, Wipro, BHEL and ICICI Bank ended in the red. TCS closed at Rs.389.80, down nearly 50% after it went ex-bonus following a 1:1 bonus issue.

Banking stocks led the gainers after Goldman Sachs & Co. raised its ratings on some state-run banks amid benefits expected from a rebound in the Indian economy and the financial services industry .Indus Ind Bank soared 17.17%, IDBI Bank climbed 10.15%, Axis Bank jumped 5.79%, Canara Bank rallied 5.74%, Yes Bank advanced 5.10% and Indian Overseas Bank rose 4.89%.

On the other hand, private-sector lenders ICICI Bank ended in the red after the brokerage cut its rating on the stock to neutral from buy on account of stretched valuations. HDFC Bank rose 1.14% after Bank Muscat said in a regulatory filing with the Muscat Stock Exchange that it will dispose off its remaining 0.5% holding in the HDFC Bank within a month.

Public-sector stocks flared up after coal minister Sriprakash Jaiswal said that his ministry is working on a proposal to disinvest 5-10 per cent stake in navratna PSU Coal India. Mangalore Refineries, Neyveli Lignite, Power Finance Corp, MMTC and State Trading Corporation of India were the top gainers.

Real estate stocks rose on hopes that the government will provide a stimulus for the ailing industry in the forthcoming budget. Metal stocks recovered after losing considerably in the previous session.

Oil-explorer Reliance Industries extended its loss into a second session with a 1.8% loss. However, ONGC ended up 0.13% and Cairn India rose 1.05%.

Property developer Unitech gained 2.13% after its shareholders approved the issue of up to 1 billion shares to investors and 227.5 million convertible warrants to one of its founder group firms. Textile firm JCT rallied 4.77% on reports that it will open 100 exclusive branded outlets for marketing 'Ready to Wear' garments for men in two years.

Aviation stocks such as Kingfisher and JetAirways ended sharply lower after state-run oil-marketing companies hiked jet fuel prices by over 12% to match the rising global crude oil prices. HPCL rose 2.07%, BPCL gained 3.89% and IOC added 1.85%.

Lakshmi Energy and Foods jumped nearly 7% on the NSE after it received an order worth Rs.300 crore for exporting its basmati rice 'PUSA-1121.' Flawless Diamond rose 1.85% after it bagged two orders worth Rs 5.2 crore and Rs 5.8 crore from Dubai's Madrid Impex FZE and Hong Kong's Malay Impex, respectively.

Cranes Software International ended up 0.38% after it announced the release of its powerful die analysis solution eta/DYNAFORM Version 5.7. IVRCL Infrastructures & Projects gained 1.82% on bagging fresh orders worth Rs. 432.36 crore from various companies.

Strides Arcolab jumped 10.62% to Rs.146.30 after the execution of a block deal at Rs.130 per share on the NSE. Polaris Software Lab surged up 7.62% after Al Hilal, a leading bank in United Arab Emirates (UAE) selected Polaris' Intellect Collect system software for its banking operations.

Larsen & Toubro rose 1.29% on reports that its advance-tax payments for the April-June quarter has increased 15% to Rs.1.1 billion from Rs.950 million in the same quarter last year. Tata Steel advanced nearly 4% despite reporting a 36% drop in its advance-tax payments.

SoftPro Systems was locked at the 5% upper circuit limit after it acquired Cura Risk Management Software of South Africa for $19 million in an all-cash deal. TRF rallied 5% after its board approved a 1:1 bonus issue to its shareholders.

Reliance Infrastructure soared 6.14% on speculation that it will benefit from lower gas prices after the Bombay High Court upheld the maintainability of RNRL's plea in a legal gas distribution dispute with Reliance Industries. Indraprastha Gas fell 2.25% after it increased the selling price of compressed natural gas (CNG) by Rs.2.10 a kg in Delhi from Monday midnight.

On the BSE, Reliance Natural Resources topped the traded value chart with a total turnover of Rs 467.53 crore followed by Reliance (Rs 265.25 crore), Reliance Capital (Rs 252.88 crore), Tata Steel (Rs 205.12 crore) and DLF (Rs 201.19 crore).

Reliance Natural Resources topped the traded volume chart with trades of over 45 million shares followed by IFCI (22.01 million), Unitech (21.43 million), Suzlon (16.64 million) and JP Hydropower (13.74 million).

Elsewhere, the other Asian markets ended in the red across the board, Europe stocks were trading modestly higher in early trading and U.S. stocks futures were little changed Tuesday morning in New York amid growing concerns about the pace and magnitude of economic recovery and weaker commodity prices.

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