Wednesday, ignoring bearish sentiment in global markets, the Indian market cut its early losses and closed sharply higher near the day's high on hopes of increasing capital inflows from foreign funds amid reports that HSBC Holdings Plc has lowered U.S. equities to underweight' and has recommended investors buy into stocks in Asia, emerging markets and Europe to take advantage of falling volatility.
The major markets across the Asia-Pacific region ended mixed on Wednesday following a weaker closing on Wall Street, where the major indices declined on disappointing retail sales data and a weak producer prices report.
While the markets in Australia, South Korea, Taiwan and Japan ended lower, the markets in China, Hong Kong and Singapore recouped their early losses and ended in positive territory on expectations that China might announce another stimulus to help revive the economy that is already showing signs of recovery. The European markets also fell in early trading as concerns of economic downturn took centrestage.
Back home, the NSE Nifty index surged past the 200- DMA (daily moving average). Total traded turnover from the cash segment and the futures and option segment on the NSE stood at Rs.1, 00,893.68 crore, the highest turnover for non-expiry day since January 2008.
The BSE Sensex opened lower at 10,805 and fell to a low of 10,719 in early trading before bouncing back sharply to the day's high of 11,338 in the afternoon due to the significant buying witnessed at lower levels in several index heavyweights. However, the index pared some of its gains and finished at 11,285, up 318 points or 2.90% over the previous close. Similarly, the S&P CNX Nifty rose 102 points or 3.0% to 3,484.
Stocks in the mid-cap and small-cap segments were bought aggressively. While the broad-based BSE 500 index gained 3.44%, the mid-cap index added nearly 4% and the small-cap index jumped 5.32%. On the BSE, the market breadth was extremely positive, with advancers outnumbering decliners by 2171 to 465.
Barring IT stocks, which closed sharply lower for the day, stocks across the sectors closed firm. Realty, capital goods, power and banking stocks led the rally, while stocks in the FMCG, technology and oil/gas space showed modest gains.
IT stocks ended mostly in the red across the board after Infosys reported its first ever sequential fall in its revenue in a decade for the March quarter and gave a downbeat forecast in dollar terms for the financial year 2009/10.
Among the major gainers, Tata Motors climbed 11.50%, DLF and BHEL jumped around 10% each, Reliance Infrastructure surged up 7%, ICICI Bank soared 6.77% and Larsen & Toubro rallied 6.65%.
State Bank of India, Ranbaxy Laboratories, Sun Pharma, Mahindra & Mahindra and HDFC ended up more than 5% each.
However, Infosys fell 2.72%, TCS declined 2.39%, HDFC Bank drifted down 1.17%, Tata Power lost 0.86%, Sterlite Industries shed 0.75%, ITC lost 0.72% and ONGC moved down 0.25%.
Tata Motors jumped 11.50% after the company bought back and extinguished its US and Japan- listed foreign currency convertible bonds at a 50% discount to the issue price.
United Spirits rallied nearly 6% after its global sales rose 20% to over 90 million cases in the financial year 2008-09 compared to the previous year. SKF India soared around 10% after a block deal of 13 lakh shares was executed on the Bombay Stock Exchange.
Reliance Communications rose nearly 5% after the company said it would invite tender from its existing bondholders for buying back the outstanding foreign currency convertible bonds (FCCBs) at a discount.
Larsen & Toubro jumped 6.65% on signing an agreement with Russian company Atomstroyexport (ASE) for co-operation on nuclear power reactors. Allahabad Bank advanced 6.29% on reports that it targets 20-21 per cent growth in deposits and advances in FY2009-10.
CMC zoomed more than 50% to Rs.571.75 on reporting a 26% growth in its consolidated net profit in FY09. Garware Offshore Services was locked at the 20% upper circuit limit on securing a three-year contract from ONGC for its newly built platform supply vessel M V Makalu.
Steel Authority of India added 3.43% on reports that it has posted a 4 per cent rise in sales volume in March from a year earlier. Bharati Shipyard jumped nearly 10% after the company proposed to issue convertible warrants to the promoter directors of the company.
DCW soared 7.45% on commencing the sale of surplus power from the 2 x 25 MW coal- based captive co-generation plant at Sahupuram in Tamil Nadu to Tamil Nadu Electricity Board.
GVK Power & Infrastructure rallied 6.30% after GVK Industries, a wholly owned subsidiary of the company, commenced commercial operation of its 220 MW expansion project - phase II at Jegurupadu, East Godavari District.
Satyam Computers fell 2.56% after the company's announcement that it would de-list its American Depositary Shares from the NYSE Euronext in Amsterdam.
Reliance Capital topped the traded value with a turnover of Rs.343.59 crore followed by Reliance (Rs.325 crore), Essar Oil (Rs.271.17 crore), ICICI Bank (Rs.266.70 crore) and DLF (Rs.202.85 crore).
Unitech topped the traded volume with trades of around 4.24 crore shares followed by Cals Refineries (3.14 crore), Reliance Natural Resources (2.65 crore), Suzlon (1.84 crore) and Essar Oil (1.66 crore).
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