(RTTNews) - Consisting buying across the board amid strong global cues helped Indian equities recover sharply on Tuesday following four straight sessions of losses. U.S. and European shares posted strong gains overnight and Asian stocks followed suit this morning after European officials said they are considering new measures to support euro zone countries struggling with debt problems.
Traders scrambled to cut their short positions ahead of Thursday's F&O settlement as easing European debt concerns lifted stocks across the globe.
The benchmark 30-share Sensex closed near the day's high at 16,524, up 473 points or 2.95 percent from its previous close, with 29 of its components ending in the green. Drug maker Cipla bucked the upward trend to end 0.3 percent lower even as UBS upgraded the stock to 'buy' from 'sell', citing a weaker rupee.
The Indian rupee was trading up 31 paise at Rs.49.14 versus the dollar in early trading, as Asian currencies strengthened and positive local shares revived hopes for more capital inflows.
The benchmark Nifty index on the NSE climbed 136 points or 2.81 percent to 4,971, while BSE mid-cap and small-cap indexes posted relatively modest gains. The market breadth was extremely positive, with gainers outpacing decliners in the ratio of 2:1 on the BSE.
Eurozone officials are working to magnify the firepower of the region's rescue fund, a senior European Central Bank policymaker said yesterday, lifting the other Asian markets up between 0.9 percent and 5 percent on Tuesday. South Korea's Kospi index led the gainers in the region, while the Chinese market underperformed ahead of a week-long holiday in the country. Chinese financial markets will be closed between Oct. 1 and Oct. 7 for the National Day holiday.
The major European averages were up around 3 percent each in early trading, extending two days of gains, and the Dow futures pointed to a third day of consecutive gains on Wall Street.
Back home, market heavyweight Reliance Industries shot up more than 5 percent, technology stocks like TCS and Infosys rose around 4 percent each and private sector lender ICICI Bank climbed 3.6 percent. IT bellwether Infosys will announce its second-quarter results on October 12.
Property developer DLF led the gainers in the Sensex pack, climbing 8.5 percent, after reports suggested that the company has sold 10.8 acres land in Gurgaon to a Dubai-based investor as a part of its efforts to reduce its debt burden.
Infrastructure firm Jaiprakash Associates and Tata Motors, India's largest automaker, soared around 6 percent each, while metal stocks such as Hindalco and Sterlite rallied about 4 percent each on bargain hunting after being battered heavily recently.
(RTTNews) - ITC, Bajaj Auto, SBI, Wipro, Maruti Suzuki, HDFC, Mahindra & Mahindra, Hindustan Unilever, Jindal Steel, Coal India, BHEL and Tata Power were the other prominent gainers, with gains between 2 percent and 4 percent.
BEML jumped 5.1 percent on bagging a new order worth Rs 230 crore from Coal India. Reliance Capital rose 1.3 percent after the Anil Ambani-controlled financial firm said it is evaluating opportunities to enter high-growth banking sector. Shares of another group company Reliance Communication rallied 3.8 percent after the telecom firm said it is in advanced talks with a number of investors to sell its tower unit.
Ind Swift Laboratories climbed 3.2 percent after the drug firm received shareholder nod to raise up to Rs 500 crore via issuance of new securities. Dabur India advanced 1.2 percent after the consumer products maker signed a pact with the Board of Investment of Sri Lanka to set up a new export-oriented manufacturing plant in the country.
JSW Steel fell 1.3 percent after the steelmaker warned of a temporary shutdown of its Vijaynagar plant in Karnataka due to a continuous shortage of iron ore. Pipavav Defence and Offshore Engineering, previously Pipavav Shipyard, plunged 4.4 percent after the defence ministry put on hold a joint venture between the company and Mazagon Dock to build warships and submarines following complaints of lack of transparency.
Sun TV Network lost 2.8 percent on reports that the CBI may file chargesheet against the Maran Brothers in a case related to the sale of Aircel to the Malaysia-based Maxis group. GMR Infrastructure eased 0.4 percent even as it won a mega highway project.
