RTTNews - After an early loss, the Indian market bounced back sharply to end near the day's high on Thursday, tracking recovery in Asian stocks, the positive opening by the European markets and due to short covering on account of the expiry of monthly derivatives contracts. U.S. index futures also rose pointing towards a positive opening on Wall Street Thursday.
China's central bank said that it will emphasize the use of market tools instead of quantity controls to guide appropriate growth in money supply and lending, putting at rest speculation that it will rein in lending.
Back home, the headline inflation rate continued to hover in negative territory for the seventh straight week, provisional data issued by the ministry of commerce and industry showed on Thursday. Wholesale prices fell 1.54 percent from a year earlier in the week to July 18, compared to the 1.17 percent decline in the previous week and a 12.54 percent rise in the corresponding week last year.
The BSE Sensex, which fell to a low of 15,065 in early trading, bounced back sharply to the day's high of 15,410 before finishing at 15,388, up 215 points or 1.41% from its previous close. Likewise, the S&P CNX Nifty rose 58 points or 1.28% to 4,571.
On the BSE, the mid-cap index moved up 0.54%, the small-cap index gained 0.80% and the broad-based BSE 500 index added 1.07%. The market breadth was fairly positive, as gainers outnumbered losers by 1506 to 1167 , with 83 stocks closing unchanged. Sector-wise, IT, FMCG and banking stocks led the market higher, while oil/gas, power and metal stocks closed on a subdued note.
IT stocks rose on the back of a weaker rupee, FMCG stocks on improvement in India's monsoon rains and banking stocks after SBI reported better-than-expected profits. Tata Steel rose 2.53% and Sterlite ended up 0.89% after falling sharply in the previous session.
Among the top gainers, TCS soared 6.04%, Hindustan Unilever rallied 5.15%, Wipro jumped 4.68%, HDFC advanced 4.31%, SBI rose over 4%, ICICI Bank gained 3.14% and HDFC Bank added 2.95%.
Tata Steel, ITC, ACC, Larsen & Toubro, Reliance Infrastructure, Jaiprakash Associates, NTPC, Infosys, Mahindra & Mahindra, Grasim and DLF were the other prominent gainers.
On the other hand, Sun Pharma, BHEL, Reliance Industries, Hindalco, Reliance Communication, Tata power and Hero Honda Motors ended in the red.
Sun Pharma fell 3.62% after its June-quarter consolidated net profit tumbled 67% year-over-year. Sesa Goa gave off 2.63% after its quarterly profit fell by a third despite record iron ore sales. McLeod Russel India advanced 3.40% on reports that it is eyeing plantations in Africa.
Orbit Corporation rose 3.58% on reports that it has identified four to five prime properties in South Mumbai for redevelopment and is planning a Rs.250-crore QIP issue in few weeks. Indian Oil Corporation rallied over 4% amid reports that it has initiated talks with Oil India for a possible acquisition of London Stock Exchange-listed Gulf Keystone Petroleum Ltd for $2.23 billion.
Power Grid Corporation of India rose 1.45% after it beat market expectations with a 79% rise in quarterly net profit. Bank of Rajasthan edged up 0.52% despite reporting a 45% drop in its June-quarter net profit.
Borosil Glass Works declined 1.34% after its net loss widened to Rs 20.03 crore in the quarter ended June compared to the year-ago period. Balaji Telefilms added 2.66% even as its June-quarter net profit tumbled 60% year-over-year.
Sun TV Network eased 0.44% despite reporting a 17% rise in its quarterly net profit. Alfa-Laval ended down 0.57% even as it announced a 14% year-over-year rise in its June-quarter net profit.
Mahindra & Mahindra rose 1.22% after its June-quarter profit more than doubled to Rs.401 crore from Rs.159.30 crore in the year-ago period. SBI rallied over 4% on the back of a better-than-expected 42% rise in quarterly net profit. Patni Computer surged up 12.55% after its June-quarter consolidated net profit grew 14% year-over-year.
GMR Infrastructure added nearly 2% after its board accorded approval for sub-division of its equity shares. Shoppers Stop rose 1.30% after it reported a consolidated net profit of Rs. 1.01 crore for the three months ended June compared to a net loss of Rs. 21.36 crore in the year-ago period. Sobha Developers slipped 1.83% and Voltas fell 2.38% on disappointing quarterly results.
In a key development that could lift economic growth, Union Road Transport Minister Kamal Nath said on Thursday that road projects worth Rs.2-lakh crore would be awarded in the next 2 years. We are going to award Rs 1 lakh crore of projects this year and Rs 1 lakh crore next year,'' Nath said at a seminar organized by industry chamber FICCI.
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