rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Markets gain led by financials

Markets gain led by financials

Last updated on: September 11, 2012 16:34 IST

Markets reversed early losses to end with marginal gains on Tuesday led by financials on hopes that expansion in July industrial output, data for which will be released tomorrow, would help the central bank to ease interest rates. Further, gains in ITC and software majors also boosted market sentiment.

The Sensex advanced 86 points to close at 17,853 and the 50-share Nifty closed higher by 26 points at 5,390.

For the most part of the day, the markets traded in a rangebound fashion. The Sensex recovered 188 points from the intra-day's low level to close higher.

Meanwhile, the meeting of Cabinet Committee on Political Affairs (CCPA), scheduled for this evening to discuss raising the prices of  diesel, cooking gas and kerosene prices has been postponed.

The Global markets were trading lower as investors waited for a German ruling on the euro zone's new bailout fund, elections in the Netherlands and potential new stimulus from the U.S. Federal Reserve.

In Europe, The CAC40 index slipped 0.5 per cent or 17 points at 3,489, DAX was down 0.2 per cent at 7,197 and the FTSE100 was down 0.4 per cent at 5,468 levels.

Most of the Asian markets also closed weak. The Nikkei ended weaker by 62 points at 8,807 and Shanghai Composite slipped 14 points to 2,120. While, the Hang Seng closed marginally higher, up 30 points at 19,857.

Back home, HDFC was the top gainer among the Sensex stocks. The stock jumped 2.2 per cent to Rs 756 its highest level since October 2010, after the country's largest housing finance company announced the successful conversion of warrants with equity shares.

Infosys ended up 0.7 per cent at Rs 2,529 after McCamish Systems LLC, an Infosys BPO company, specialing in end-to-end, enterprise-wide insurance and retirement business process solutions, has increased its presence in the Voluntary Group Life Insurance business space by commencing operations in Des Moines, Iowa, USA.

NTPC, BHEL, ICICI Bank, TCS, ITC, HDFC Bank, Maruti Suzuki, CVipla, Dr Reddy's Labs, Hindalco, Bharti Airtel and Bajaj Auto also closed higher by 0.4-1.7 per cent each.

On the other hand, Sterlite Industries slipped 5 per cent to Rs 93 after the Goa government ordered to shut all mining operations effective from today until further orders.

"A notification suspending all operations was issued by the state government following the indictment of former chief minister Digambar Kamat by the Shah commission, which inquired the illegal mining in the state," the newspaper report suggests.

Hero MotoCorp slipped 1 per cent to close at Rs 1,800 on worries the two-wheeler maker will have to cut production after posting a 11.9 per cent fall in sales in August.

Jindal Steel, Tata Steel, Larsen & Toubro, HUL, Wipro, Sun Pharma, Coal India, SBI, Reliance Industries and Tata Power Mahindra also closed on a weak note.

On the sectoral front, IT index was the top gainer. The index has advanced 0.1 per cent or 56 points to 6,039. Realty, power, bankex, FMCG, consumer durables, healthcare, oil & gas, PSU and capital goods indices also ended higher by 0.2-0.8 per cent each.

At the same time, auto and metal indices ended weak.

Among the individual stocks, Opto Circuits (India) moved higher by 5 per cent at Rs 137 after its subsidiary Opto Eurocor Healthcare launched its first Sirolimus Drug Eluting Stent (DES), E-MAGIC® Plus.

Muthoot Finance rallied 8 per cent to Rs 148 on plans to raise funds up to Rs 500 crore (Rs 5 billion) through secured non-convertible debentures (NCD).

Tulip Telecom has locked down circuit of 5 per cent at Rs 77.25 for second day in a row on the Bombay Stock Exchange (BSE). The stock of telecom services provider is under pressure as company yet to tie-up funds for redemption of foreign currency convertible bonds (FCCBs). The stock has underperformed the market by falling 28 per cent in past one month as compared to 1 per cent gain in benchmark Sensex.

Panacea Biotech has locked upper circuit of 20 per cent at Rs 108 after the company said it has entered into strategic alliance with Osmotica Pharmaceutical for developing high barrier to entry generic and branded pharmaceuticals for US and key strategic markets.

The broader markets were in-line with the benchmark indices. The BSE mid-cap index advanced 0.3 per cent or 17 points to close at 6,177 and the small-cap index advanced 36 points to 6,577.

The overall breadth was positive as 1,573 stocks advanced while 1,263 declined.

Abhishek Vasudev in Delhi
Source: