Monday, the Indian market surged to close at a 7-month high, encouraged by favorable global cues and sustained buying by foreign funds amid strong domestic and global economic data.
Output at Indian factories expanded for the first time in five months in April, spurred by fresh order inflows, according to a survey sponsored by ABN Amro Bank. The ABN Amro Bank's purchasing managers' index (PMI) based on a survey of 500 companies rose to 53.3 in April from 49.5 in March, pointing an economic recovery in the world's second fastest growing economy. The latest reading is the highest in seven months and it has been steadily improving ever since it hit a trough of 44.4 in December. Manufacturing constitutes about 16% of India's gross domestic product.
Separately, the Indian economy is expected to grow by 6.1-6.5 per cent during the ongoing fiscal year owing to high growth in key sectors like agriculture and services, the Confederation of Indian Industry said in a report.
Higher metal prices on the London Metal Exchange, reports showing better-than-expected consumer confidence and manufacturing in the U.S. and easing fears about swine flu, also encouraged investors pick up stocks across the board.
The BSE Sensex made a gap-up opening at 11,634 and rose significantly over the course of trading to finish near the day's high. The BSE Sensex closed at 12,135, up 731 points or 6.41% over the previous close and the S&P CNX Nifty jumped 172 points or 4.96% to 3,646.
On the BSE, the market breadth was extremely positive, with advancers outnumbering decliners by 1769 to 772. The broad-based BSE 500 index rallied 5.46%, the mid-cap index advanced 3.91% and the small-cap index added 3.57%.
Sector-wise, the BSE metal and IT indexes outperformed the broader market, rising by more than 8% each. The banking index surged up 7.89%, the capital goods index and technology indexes soared around 5.8% each and the defensive FMCG index rallied 5.43%.
Among the major gainers, Sterlite Industries climbed 16.56%, Hindalco Industries jumped 13.74%, Mahindra & Mahindra soared 13.07%, HDFC Bank jumped 13.06% and ICICI Bank rallied 10.74%. Tata Steel and Wipro also ended up more than 10% each. All the 30 Sensex stocks closed firmly in positive territory.
Auto shares advanced after firms such as Maruti Suzuki, Hero Honda and Mahindra & Mahindra reported robust vehicle sales for the fifth successive month in April on the back of continued demand from small cities and rural markets. Realty stocks also showed considerable strength on reports that the rate of interest on loans up to Rs.30 lakh would drop to 9.25% or lower very soon.
Reliance Petroleum advanced 4.61% after its parent Reliance Industries hiked its stake in the company to 75.38%. Suzlon Energy rose 3.61% after it has raised its stake in Germany's REpower Systems to 76 percent.
HDFC surged up 13.06% after its standalone net profit fell a modest 4.6% for the 12 months to March, beating market expectations. Allahabad Bank jumped 8.48% on reporting a 56% rise in its net profit for the March quarter year-over-year. Corporation Bank gained nearly 3% after it proposed to issue Upper Tier-II Bonds for Rs.500 crore on a private placement basis.
Nucleus Software Exports soared 7.08% on informing that its lending software solution, FinnOne, has gone live at Power Bajaj Auto Finance for their captive auto and consumer finance business. Bharti Airtel added a little over 1% after the company set up a venture with Alcatel-Lucent SA to manage its fixed-line and broadband businesses.
Himalaya International soared 15.39%, CESC jumped 6.73%, GHCL surged up 7.14% and Kesoram Industries climbed 15.18% after they have reported robust results for the quarter ended March. However, ABB fell nearly 3% after its net profit fell a third to Rs.78.37 crore in the March quarter compared to the same quarter last year.
Gokaldas Exports advanced 3.63% on reports that it will receive new orders worth Rs.1, 100 crore in FY10. Motherson Sumi Systems rallied 5.26% after 89.51 lakh shares changed hands in three different block deals on the Bombay Stock Exchange.
Oil-explorer Reliance Industries, ONGC and Cairn India closed sharply higher, but oil marketing firms HPCL, BPCL and IOC ended in the red.
Reliance topped the traded value with a turnover of Rs.258.18 crore, followed by ICICI Bank (252.36 crore), Educomp Solutions (153.13 crore), Reliance Capital (151.81 crore) and Unitech (151.49 crore).
Cals Refinery led the traded volume with 71.35 million shares traded on the BSE and was followed by Unitech (31.48 million), Reliance natural Resources (12.13 million), IDFC (9.92 million) and Suzlon (9.29 million).
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