A rally in index heavyweight Reliance Industries and sustained buying in IT pivotals helped the market firm up again in afternoon trade.
The BSE 30-share Sensex was up 282.32 points, or 3.11%, to 9,350.83, up 127.67 points from the day's low, but off 36.77 points from the day's high. Strong Q3 December 2008 results announced by bellwether Infosys and gains in Asian stocks boosted the domestic bourses today.
The market extended gains in morning trade after opening with an upward gap. It later cut gains. It surged again to gain as much as 3.49% in mid-morning trade. The market pared gains after the steep surge. It firmed up again in afternoon trade.
Infosys Technologies, India's second largest software services exporter jumped 5.33% to Rs 1295.80, extending yesterday's 5.90% surge. Infosys' American depository receipt advanced 5.87% on Tuesday.
Most Asian markets advanced today, as technology companies gained on assumption consolidation will strengthen profits and as a jump back in oil boosted energy producers. Key benchmark indices in China, Hong Kong, Japan, Singapore, South Korea were up by between 0.29% and 3.52%. However Taiwan's Taiwan Weighted index fell 0.24%
US markets ended mixed on Tuesday, as investors continued to show concerns over the slowing economy, ahead of the corporate earnings season. The Dow Jones industrial average slipped 25.41 points, or 0.30%, to 8,448.56. However the S&P 500 index rose 1.53 points, or 0.18%, to 871.79 and the Nasdaq composite index gained 7.67 points, or 0.50%, to 1,546.46. On the economic front, US trade deficit shrank nearly 29% in November 2008, the biggest contraction in 12 years.
At 14:25 IST, the BSE 30-share Sensex was up 282.32 points, or 3.11%, to 9,350.83. The Sensex opened 151.80 points higher at 9,223.16, which was its day's low so far. The Sensex gained 316.24 points at day's high of 9,387.60 in early afternoon trade.
The S&P CNX Nifty gained 77.70 points, or 2.83%, to 2,822.65
The market breadth, indicating the overall health of the market, was strong on BSE with 1305 shares advancing as compared with 863 that declined. 92 shares remained unchanged.
The total turnover on BSE amounted to Rs 1524 crore by 13:25 IST as compared to Rs 1197 crore by 12:25 IST.
Sun Pharma was the lone loser from the 30-member Sensex pack India's largest pharma company by market capitalisation lost 0.93% to Rs 1124.20 on profit booking after a 8.96% rise in a week to 13 January 2009.
The stock entered the BSE Sensex from the beginning of this week replacing Satyam Computer. The stock exchanges removed Satyam from the key indices after Satyam's founder and former chairman B Ramalinga Raju on Wednesday, 7 January, 2009, admitted of a nearly Rs 7000-crore financial fraud.
Reliance Infrastructure (up 5.22%), Mahindra & Mahindra (up 4.58%), and Tata Steel (up 5.20%), edged higher from the Sensex pack.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) galloped 6.58% to Rs 1152 on reports it would re-enter the retail fuel business when government deregulates fuel prices and allows the market-determined prices to prevail. It was the top gainer from the Sensex pack. The company had had to close down its 1,433 retail outlets in May 2008 as it was unable to compete with the state-run oil marketing firms that were given subsidies by the government to sell the fuels. The company had captured a market share of 14.3% in diesel and 7.3% in gasoline before it closed down its operations.
IT pivotals advanced for the second running day boosted by stronger-than-expected Q3 December 2008 results from IT bellwether Infosys Technologies. India's largest software services exporter by sales TCS advanced 4.53% to Rs 546.50 on reports it has got a significant portion of World Bank contracts that were previously serviced by Satyam Computer Services. The stock retraced from day's high of Rs 556.90. TCS unveils its Q3 December 2008 results on 15 January 2009.
India's third largest software services exporter in terms of sales, Wipro rose 0.83% to Rs 243.10, off day's high of Rs 253.40. Wipro's American depository receipt jumped 6.67% on Tuesday. Wipro unveils its Q3 December 2008 earnings on 21 January 2009.
India's fourth largest software services exporter by sales Satyam Computer Services fell 4.95% to Rs 29.70, off day's high of Rs 34 on reports the government is finding it difficult to move ahead with Satyam's rescue plan. The government has ascertained that Satyam immediately requires Rs 1,000 crore to pay rents in the US and salaries. However, the government is unlikely to provide any funds because of a report from the Registrar of Companies that the documents accessed from the company are a pack of lies. Satyam's American depository receipt slumped 9.59% on Tuesday.
Meanwhile, special economic zones (SEZs) set up by IT majors like Infosys, Wipro and TCS under the parent companies will soon be able to enjoy 100% tax exemption on profits on par with SEZs set up as separate entities as the government has reportedly decided to amend the income tax law relating to tax exemption for units operating out of special economic zones.
Strong Infosys results helped IT stocks shrug off a firm rupee. Rupee was higher at 48.95/97 per dollar, from its previous close of 49.11/12, on expectations of capital inflows into local shares. A firm rupee negatively impacts operating margins of IT firms as the sector derives a lion's share from exports.
India's second largest private sector bank by net profit, HDFC Bank eased from day's high of Rs 1023.80 ahead of its results and was now up 1.12% to Rs 1000.50. A total of five brokerages expect a between 38.3% to 43.2% growth in HDFC Bank's net profit to between Rs 594 crore to Rs 615 crore in Q3 December 2008 over Q3 December 2008. They expect a between 34.2% to 40.9% growth in net interest income to between Rs 1929 crore to Rs 2025.10 crore in Q3 December 2008 over Q3 December 2007.
HDFC bank's Q3 results will include the impact of the merger of Centurion Bank of Punjab and hence will not be comparable.
India's largest real estate firm by market capitalisation DLF advanced 2.36% to Rs 209.80 on bargain hunting after sliding 26.70% in a week to 13 January 2009.
Sugar shares surged after Indian sugar futures edged up today, 14 January 2009, on the commodities markets on speculation of a sharp fall in the output. Shree Rennuka Sugars (up 4.05%), Bajaj Hindusthan (up 6.36%), and Balrampur Chini Mills (up 9.60%), gained.