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Rediff News  All News  » Business » Markets snap 4-day fall, Nifty ends above 5,350

Markets snap 4-day fall, Nifty ends above 5,350

February 28, 2012 16:26 IST

BSEIndia's benchmark shares indices ended almost 2% higher on Tuesday, snapping a four day losing streak, on the back of robust global cues, with Reliance Industries, financials and capital goods leading the gains.

The 30-share Sensex ended at 17,731 up 285 points or 1.6% and the 50-share Nifty ended at 5,376 up 94 points or 1.8%.

The Sensex and the Nifty reached an intra-day high of 17,777 levels and 5,391 mark, respectively.

Meanwhile, India's infrastructure sector output grew 0.5% in January from a year earlier, sharply lower than the upwardly revised annual growth of 4.6% in the previous month, government data showed on Tuesday.

On the global front, Asian shares ended positive on Tuesday as markets waited for a second liquidity injection from the European Central Bank to gauge risk appetite that has been somewhat dented by worries over high oil prices.

Nikkei, Strait Times, Hang Seng, Taiwan Weighed, Shanghai Composite and Kospi surged between 0.1-1%.

The euro traded just below 12-week highs, stocks were firmer and safe-haven German bonds edged lower on Tuesday as the European Central Bank's upcoming liquidity injection supported prices and eclipsed concerns over Greece and the global economic outlook. CAC-40, DAX and FTSE-100 gained between 0.3-1%.

Back home, apart from Technology and FMCG, all the major BSE sectoral indices ended in green zone.

Index heavyweight Reliance Industries maintained the steady movement, ended up by nearly 2%.

Banking and financial shares like SBI, ICICI Bank, HDFC and HDFC Bank surged between 2-6% on hopes of rate cut by the central bank as concerns over rising inflation eased.

From the Capital Goods space, BHEL was the top Sensex gainer, up by over 7%. BHEL announced yesterday that it has secured Rs 774 crore order from oil exploration company ONGC to supply onshore drilling rigs. L&T zoomed over 4%.

Metal stocks like Hindalco, Sterlite, Tata Steel, Coal India and Jindal Steel gained between 2-5%.

Among Auto segment, Tata Motors jumped by nearly 5% ahead of the February vehicle sales numbers, which the company is scheduled to declare tomorrow. Hero MotoCorp, M&M, Bajaj Auto and Maruti Suzuki gained between 1-3%.

Realty stocks also rallied on expectations that the central bank will start cutting interest rates in the coming months to prop up slowing economy.

DLF zoomed by nearly 5%.

On the losing side, IT stocks like TCS and Wipro declined by almost 1% each.

The broader markets outperformed the benchmark indices. The BSE Midcap and Smallcap indices zoomed by almost 3% each

The overall market breadth in BSE ended strong with 2,140 shares advancing and 764 shares declining.


Shares of state-owned companies such as HMT, ITI and Scooters India rallied more than 9% each on reports that the government is likely to revert to the policy of using 25% of the disinvestment proceeds for reviving sick public sector undertakings and recapitalizing the profitable ones from the next fiscal.

Indiabulls Financial Services has zoomed 15% to Rs 223 on back of huge volumes.

Jaiprakash Associates moved up 7% after the company late Monday said its shareholders and creditors have approved hiving off its cement business to a wholly-owned subsidiary, Jaypee Cement Corporation Ltd.

Reliance Infrastructure surged 11.5% to Rs 603 on reports that the company may hike power tariff after the state power regulator Maharashtra Electricity Regulatory Commission provisionally allowed a revenue gap of Rs 222 crore for the financial year 2010-11.

McLeod Russel India rallied 8% to Rs 233 on reports that the world's biggest tea planter, has put in bids for acquisition of  two tea plantation companies in Rwanda, East Africa.

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Surabhi Roy in Mumbai