(RTTNews) - Indian equities snapped a five-day slide on Wednesday, with benchmark indexes Sensex and the Nifty climbing more than 3 percent each, as upbeat economic data from the U.S. and Europe, a successful Spanish debt auction and Chinese Premier Wen Jiabao's pledge to support exporters and small businesses eased global growth worries.
Adding fuel to the fire, the European Central Bank offered unlimited three-year refinancing facility to the region's banks, which analysts dubbed as back-door quantitative easing, helping ease worries about the European sovereign-debt crisis.
With the government and the Reserve Bank of India taking steps to support the Indian rupee, speculators rushed to cover short positions, helping key benchmark indexes close near their day's highs.
The Indian rupee rose for the first time in three days on Wednesday following the central bank's comments that it would take "more measures as the need arises" to curb speculation in the currency market. The recent fall in stock prices was mainly because of the rupee deprecation, caused by external factors and concerns over faltering domestic growth. The 30-share Sensex finished the day up 550 points or 3.63 percent at 15,726, with 29 of its components advancing. The 50-share Nifty index closed at 4,693, up 149 points or 3.28 percent from its previous close, while the broader markets underperformed, with the BSE mid-cap and small-cap indexes ending up about just a percent each.
Banks such as SBI, HDFC Bank and ICICI Bank climbed 2-8 percent after yields on the 10-year benchmark government bonds fell to a 4-month low on Tuesday, on expectations that the easing inflation will prompt RBI to shift its focus to encouraging growth.
Rate-sensitive automakers such as Tata Motors, Hero MotoCorp, Maruti Suzuki and Mahindra & Mahindra rose 1-6 percent as speculation is rife that the central bank may cut the cash reserve ratio (CRR) in January by when the overall WPI inflation is expected to drop below 9 percent.
According to Prime Minister's Economic Advisory panel Chairman C Rangarajan, inflation will likely fall to around 7 percent by March 2012.
Telecom giant Bharti Airtel and power producer Tata Power soared over 6 percent each, market heavyweight Reliance Industries jumped 5.5 percent, metal stocks such as Tata Steel, Hindalco and Sterlite gained 2-4 percent, software services exporter Infosys rose 3.2 percent and property developer DLF closed 2.3 percent higher.
Ranbaxy Laboratories rose 2.9 percent, reversing early declines, after the drug manufacturer said it has signed a consent decree with the US Food and Drug Administration, setting aside a provision of $500 million in connection with the investigation by the U.S. department of justice.
(RTTNews) - SKS Microfinance hit the 5 percent upper circuit limit after the company received shareholder nod to hike the foreign institutional investment (FII) limit in the company to 74 percent from current 24 percent.
GTL Infrastructure and GTL climbed 8-11 percent on the buzz that they have received final approval from lenders for a debt restructuring plan.
Punj Lloyd and Mcnally Bharat Engineering rose 2-4 percent on winning new work orders. Kavveri Telecom added a percent as the wireless subsystem manufacturer said it signed a 10-year pact with a national mobile operator for in-building wireless solutions.
Biocon soared 5.6 percent after its subsidiary Clinigene International and Pacific Biomarkers Inc. entered into a collaborative agreement to address the specialty biomarker and high-end clinical trial laboratory needs of the global pharmaceutical and biotech industry.
Meanwhile, the government is looking at all options to attract foreign capital inflows, a news agency quoted an unidentified senior finance ministry official as saying Wednesday.
