RTTNews - Tuesday, the Indian market bounced back sharply to close near the day's high after a steep fall in the previous session. Strong buying by long-term foreign funds and bargain hunting by retail investors helped stocks end higher across the board. Additionally, an intra-day recovery in Asian stocks and the positive opening of the European markets improved investor sentiment.
While promising more spending on infrastructure and public services, Prime Minister Manmohan Singh said in the Lok Sabha that India will achieve an economic growth of at least 7 percent this fiscal year. I don't promise you we won't be affected by the international conditions, but we will be able to achieve a growth rate of 8-9 percent, even when the world grows at a lower rate, he said in his reply to the motion of thanks on President Pratibha Patil's address to both houses of Parliament.
After showing choppiness in early trading, the BSE Sensex pulled back to hit a high of 15,161 before finishing at 15,127, up 461 points or 3.14% from its previous close. Likewise, the S&P CNX Nifty rose 121 points or 2.73% to 4,551.
On the BSE, the indexes for second-line stocks recovered considerably after falling steeply in the morning. The broad-based BSE 500 index rose 3.04%, the mid-cap index moved up 3.15% and the small-cap index added 1.67%. Realty, IT and metal stocks led the gainers.
Twenty eight out of 30 Sensex stocks ended in the green. DLF(up 10.07%), Jaiprakash(up 8.18%), Reliance Communication(up 7.37%), Larsen & Toubro(up 6.39%), Ranbaxy(up 6.37%), Mahindra & Mahindra(up 6.34%), TCS(up 5.95%), Tata Power(up 5.55%), Tata Steel(up 5.28%), Hindalco(up 4.53%) and ACC(up 4.47%) were the top gainers. Grasim Industries and NTPC ended down around 0.60% each.
ICICI Bank rose 1.56% on saying that it expects 24-25% growth in home, car & corporate loans business in the current fiscal year. PTC India jumped 8.20% on reports that it would acquire coal blocks abroad and has shortlisted mines in Australia and Indonesia , where the fuel is available in abundance.
Satyam Computers soared 9.95% after the fraud-hit firm disclosed its financial details ahead of an open offer for an additional 20% stake by its new owner Tech Mahindra. The company reported a standalone net profit of Rs.181 crore in the December quarter, a profit of Rs.4 crore in January and net profit of Rs.52 crore in February. There can be no assurance that any such information is accurate and the actual results may be materially higher or lower than projected, it said in a statement.
Meanwhile, Satyam's new owner Tech Mahindra climbed 25.46% and Larsen & Tourbo, which holds around 12% stake in Hyderabad-based Satyam, rallied 6.39%.
Pfizer gained 1.39% on reports that it has bought RFCL's animal healthcare division Vetnex from ICICI Venture for about $75 million. Infotech Enterprises soared nearly 7% after the company signed a multi-year contract with inCONTROL Tech (iTEC) to implement Enterprise GIS information system for Tonaga National Berhad (TNB), an electric Utility in Malaysia.
Omaxe jumped 9.06% after its board increased the limit of overseas investors' holding in the company to 100 percent. ITC advanced 3.62% on reports that it will soon increase the price of its Classic cigarettes to Rs.94 from Rs.88 a pack.
Mphasis surged up 6.14% and Indiabulls Real Estate added 2.57% following the execution of block deals on the Bombay Stock Exchange. Ramsarup Industries gained 3.10% after it commenced production of 500 tonnes per day DRI plant in West Bengal and a Waste Heat Recovery Boiler (WHRB) in Kharagpur
Austral Coke & Projects was locked at the 10% upper circuit limit after the company's board approved a 10-for-1 stock split. Diamond Cables advanced 5% on receiving a large power infrastructure project entailing electrification of North Cachar, Demaji and Kamrup Districts of Assam
Great Eastern Shipping fell 1.97% after it took delivery of new building long range product tanker Jag Aparna. Dr Reddy's Laboratories rose 3.70% after the company received approval for two generic drugs from the U.S. drug regulator.
Among state-run oil-marketing companies, HPCL fell 1.84%, BPCL fell 3.71% and IOC tumbled 4.28% following speculation the government may defer fuel price decontrol amid opposition from its key ally Trinamool Congress. On the other hand, oil-explorer Reliance Industries rose 3.79%, ONGC added 1.50% and Cairn India ended up a modest 0.69%.
On the BSE, Tata Steel topped the traded value chart with a total turnover of Rs 634.78 crore followed by Unitech (Rs 292.90 crore), Suzlon (290.38 crore), DLF (Rs 260.51 crore) and Reliance (Rs 249.42 crore).
Unitech topped the traded volumes chart with trades of 33.97 million shares followed by Ispat (26.25 million), Suzlon (24 million), JP Hydropower (19.49 million) and IFCI (17.35 million).
Elsewhere, the other major markets across the Asia-Pacific region closed mixed amid profit taking after recent gains, European stocks edged ahead in early trading and U.S. stocks were looking for direction Tuesday morning in New York, as lingering concerns about the economy offset news that Texas Instruments has boosted its quarterly profit and sales outlook. Crude oil prices ended higher with a gain of $1.25 at $69.34 a barrel in Asian trading.
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