RTTNews - The Indian market bounced back sharply on Wednesday, buoyed by the surge on Wall Street overnight on hopes of an economic rebound in the world's largest economy. Considerable amount of short covering ahead of derivatives contracts expiry on Thursday also helped the market end near the day's high.
The major markets across the Asia-Pacific region, except South Korea, rose sharply on Wednesday, boosted by positive cues from Wall Street, encouraging trade data from Japan and an announcement of an economic stimulus package in Hong Kong.
Higher commodity prices also lifted sentiment.
European stocks were slightly stronger in early dealing and U.S. stocks were looking to carry over the positive momentum from the previous session Wednesday morning in New York.
Back home, the BSE Sensex opened higher at 13,780 and rose to a high of 14,123 before finishing at 14,110, up 520 points or 3.83% from its previous close. Like wise, the S&P CNX Nifty also ended near the day's high at 4,276, up 159 points or 3.87%.
Second-line stocks also surged ahead after a pause in the previous session. The broad-based BSE 500 index rallied 3.83%, the mid-cap index moved up 3.67% and the small-cap index advanced 3.37%. The market breadth on the BSE was extremely positive. Gainers outnumbered losers by 2346 to 459 and 36 stocks closed unchanged.
Stocks across the sectors closed sharply higher. The realty index outperformed the broader market with a 6.09% gain, the banking index jumped 5.42% and the power, public sector, metal and capital goods indexes rallied over 4% each. The FMCG index underperformed with a modest 0.27% gain.
Twenty-seven out of 30 Sensex stocks ended in positive terrain. Reliance Infrastructure (up 14.72%), Sterlite Industries (up 9.49%), ONGC (up 9.42%), DLF (up 8.49%), Grasim Industries (up 7.27%), Ranbaxy (up 7.14%) and ICICI Bank (up 6.59%) were the major gainers. Jaiprakash Associates, State Bank of India, Tata Motors and HDFC Bank also closed up more than 5% each.
On the other hand, cement company ACC slipped 0.16%, diversified business conglomerate ITC ended down 0.19% and telecom company Bharti Airtel edged down 0.19% following a loss of over 10% in the previous two sessions on concerns about dilution in shareholder earnings and a stretched balance sheet.
Sugar stocks closed mixed after commodity market regulator Forward Market Commission banned futures trading in sugar till 31 December 2009 to curb spiraling sugar prices in the domestic market.
Bannariamman rose 2%, Dwarakesh gained 2.91% and Thiru Arooran rallied 4.97%, but Bajaj Hindusthan fell 1.45%, Balrampur Chinni tumbled 3.51%, Oudh Sugar moved down 2.92%, Ponni Sugar declined 2.63% and Shree Renuka Sugar ended down 2%.
Banking stocks surged across the board amid reports that state-run banks are planning to cut lending rates by 100-150 basis points within a fortnight. Indus Ind Bank climbed 9.47%, Axis Bank jumped 7.21%, State Bank of India soared 6.08%, HDFC Bank rallied 5.18% and Yes Bank advanced 4.96%.
NTPC edged up 0.22% and Power Grid Corporation of India rose 1.53% on reports that the government will dilute its stake in these state-run power firms to 51% over the next few years.
ONGC climbed 9.42% on reports that the government will double the price of natural gas sold through the administered price mechanism to $4.2 per million metric British thermal unit. Reliance Industries rose 2.01% and Cairn India rallied 5.43% after crude oil rose to hit a six-month high above $63 a barrel in Asian trading. State-run oil-marketing companies HPCL, BPCL and IOC also ended with notable gains.
Murugappa group company Coromandel Fertilizers advanced 4.15% on reports that it will invest Rs.3000-4000 crore to set up a urea and ammonia manufacturing plant in a West Asian country, the details of which will be finalized by December.
Reliance Power jumped 12.40% following reports that it has raised at least Rs.2, 400 crore from a consortium of domestic financiers for the second phase of the 1,200-MW project at Shahjahanpur in Uttar Pradesh.
Outsourcer Wipro rose 1.68% on reports that the company's operations are expanding fast in the Middle East. Infosys gained 2.68%, TCS added 3.34%, Tech Mahindra jumped 9.30% and HCL Technologies soared 8.88%.
Shipping stocks soared after the Baltic Dry Index, the benchmark for freight costs for dry bulk commodities, rose 5.59% to 2,942 in London on Tuesday. GE Shipping climbed 6.80%, Essar Shipping rose 2.34%, Shipping Corporation of India advanced 4.83%, Mercator Lines rallied 5.94% and Varun Shipping ended up 2.09%.
LIC Housing Finance jumped 7.12% after the company proposed to raise funds by issuing shares on a preferential basis and through the qualified institutional placement route. Dewan Housing Finance rallied nearly 6% and HDFC added 4.36%.
Maytas Infra was locked at the 5% upper circuit limit even as the Bombay High Court denied any interim relief to the company, in a dispute related to expansion of a stretch of Salem Highway (NH 68). Maytas had moved the court challenging termination of its contract by Utility Energytech and Engineers last month.
NIIT jumped 6.95% on reporting a standalone net profit of Rs.23.14 crore for the quarter ended March compared to a loss of Rs.34 lakh in the previous quarter. Mangalore Refinery & Petrochemicals climbed 15.60% after its net profit for the March quarter jumped 170% year-over-year to Rs 607.62 crore
IVRCL Infrastructures & Projects rallied 6.51% on bagging new orders worth Rs.299.00 crore from the government of Bihar. MRF gained 2.85% after lifting a lockout at its manufacturing plant at Arkonam in Tamil Nadu.
Sun Pharma ended up 0.91% after the company received a tentative approval from the U.S. FDA for a generic drug. TRF added 5% after the company announced a bonus issue to its shareholders.
Textile stocks such as Alok Industries, Arvind, BRFL and Century Textiles gained between 10-20% after the finance minister proposed to offer sops to the textile industry in the forthcoming budget.
On the BSE, Reliance Infrastructure topped the traded value with a total turnover of Rs 374 crore followed by Reliance Capital (Rs 255.07 crore), Bharti Airtel (Rs 247.99 crore), DLF (Rs 239.77 crore) and Reliance (Rs 199.06 crore).
Idea Cellular topped the traded volume with trades of over 19 million shares followed by Reliance Natural Resources (18.07 million), Unitech (16.48million), Ispat Industries (15.21 million) and IFCI (10.02 million).
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