New Delhi: Markets rallied near closing hours to end Wednesday’s trade with handsome gains of almost 3% on continued buying, the eight straight-session of profits for the domestic index. The Bombay Stock Exchange benchmark Sensex traded above the 11,200 mark, also boosted by slight recovery in the European markets.
Domestic indices began the day on negative note tracking weak cues from the Asian markets. In addition, India’s No 2 software outsourcer Infosys Technologies unveiled disappointing fourth quarterly results. By noon markets had rebounded with some profit booking and fresh buying by foreign funds.
Stocks continued to extend their gains and by 11:30 am Sensex had crossed 11,000 level, later the NSE Nifty also crossed 3,400 mark. The 30-share BSE index closed higher by 317.51 points at 11,284.73 and NSE Nifty ended up by 101.55 points at 3,484.15, at this level it is the highest close for NSE since 14 October, 2008.
All sectoral indices ended in green barring IT stocks that were weighed down by Infosys results. Majority of the buying was seen among the realty stocks, rising by nearly 9%. Capital goods, power, bank, pharma and auto also witnessed significant buying.
Leading the BSE rally was Tata Motors, up by 11.50% to Rs281.20, along with DLF Ltd by 10% to Rs256.80, Bhel 9.48% to Rs1,669.85, Reliance Infra by 7% to Rs710.30, ICICI Bank by 6.77% to Rs443.70, Larsen and Toubro by 6.65% to Rs878.80 and State Bank of India by 6.38% to Rs1,295.60.
Infosys Technologies was the biggest loser, dropping by 2.72%. The company announced its net profit in Q4 FY09 at Rs1,613 crore against Rs1,641 crore in the previous quarter, marking a drop of 1.7%. Revenue for the fourth quarter is also down by 2.6%. Moreover, expects a decline in revenue by 6.7% to 3.1% for FY10.
Other losers with Infosys were Tata Consultancy Services Ltd by 2.39% to Rs577.55, HDFC Bank by 1.17% to Rs1,083.90, Tata Power by 0.86% to Rs898.50 and Sterlite Ind by 0.75% to Rs421.90.
Among the global markets, in Asia Japan’s index Nikkei fell for third straight day, loss 1.1% on weak US retail data and Hong Kong’s Hang Seng edged up slightly by 0.57%. meanwhile, the European markets are trading mixed.