RTTN:Indian Markets Rally As Eurozone Debt Concerns Ease
(RTTNews) - The Indian markets rallied on Friday, mirroring positive global cues as receding concerns about Europe's sovereign-debt crisis and recent U.S. economic indicators showing signs of improvement in the United States bolstered the outlook for the global economy.
German Chancellor Angela Merkel said the strengthening of the economic and monetary union of the 17 eurozone nations would be central theme at the upcoming European Union summit, helping ease worries over global economic growth prospects.
Investors were reassured after French President Nicolas Sarkozy said he will meet German Chancellor Angela Merkel next Monday in Paris and make proposals to guarantee Europe's future. The meeting would come just ahead of a summit of European leaders in Brussels on December 9, where possible changes to the EU treaties will be on the agenda.
On the domestic front, factors like moderating inflation, the recent policy announcement to open up the retail sector and the rise in rupee value for a second consecutive session today also bolstered speculation that overseas capital inflows will strengthen.
The benchmark 30-share Sensex closed near the day's high at 16,847, up 363 points or 2.2 percent from its previous close, while the broader Nifty index climbed 113 points or 2.29 percent to 5,050.
Second-line stocks posted relatively modest gains, with the BSE mid-cap and small-cap indexes rising 1.43 percent and 1.08 percent, respectively. Banking, power, metal, IT and auto stocks led the rally.
Tata Power Company jumped 6.3 percent, pacing the gains in the Sensex pack. Metal stocks such as Tata Steel and Sterlite rose around 4 percent each, state-run power producer NTPC advanced 3.6 percent and telecom giant Bharti Airtel closed up 3 percent.
Lenders such as ICICI Bank, HDFC Bank and SBI jumped 3-4 percent after insurance regulator IRDA notified guidelines for life insurers to raise capital via initial public offerings. Software services exporters like Infosys, TCS and Wipro rose 2-4 percent even as the rupee rose for a second straight session, helped by selling of the American currency by exporters, a rise in regional equities and hopes of dollar inflows.
Bajaj Auto rose half a percent after the two-wheeler maker reported a 25 percent rise in November motorcycle sales. Tata Motors climbed 4.6 percent, Maruti Suzuki rallied 3.1 percent and Mahindra & Mahindra added 2.5 percent.
Ambuja Cements jumped 7.3 percent after posting a 29 percent rise in cement shipments for November, while rival ACC rose 3.7 percent.
Apollo Hospitals Enterprise soared almost 9 percent amid reports that it is expanding its sugar clinics network. Balaji Telefilms jumped 5.4 percent on heavy volume after the company's latest release ' The Dirty Picture' which features Vidya Balan in her boldest avatar ever, saw a strong opening at the box office. Mcleod Russel India rose 1.4 percent after the company said it has acquired a 60 percent stake in a Rwandan tea company.
(RTTNews) - Ranbaxy Laboratories slipped 0.4 percent on brokerage downgrades after Israeli drugmaker Teva Pharmaceutical Industries said it plans to launch Lipitor copies in the United States in May.
Finance Minister Pranab Mukherjee said today at the Hindustan Leadership Summit that FII outflows driven mainly by the Eurozone crisis are impacting the stock market. However, he took comfort from the increase in foreign direct investment into the country thus far this year.
