BSE gains 85 points after Nasdaq rally

Taking a cue from global indices, Indian equity indices bounced back after yesterday's sharp fall. Software, cement, auto and refinery stocks led today's rally, with the Bombay Stock Exchange (BSE) Sensex ending 85.37 points higher at 5123.65.

Software stocks were in the limelight on the back of strong gains in the tech-laden Nasdaq last night. Indeed, the echo of a strong Nasdaq close reverberated all across Asia today.

Local and global equity markets shrugged off a further flare up in oil prices. Among tech-heavy Asian indices, Japan's Nikkei 225 average rose 1.2 per cent (129 points) to 10,903.53, Hong Kong's Hang Seng index rose 1.3 per cent (168 points) to 12,396.67, and Taiwan's TAIEX closed almost 3.2 per cent higher.

In the local markets, tech stocks received a further boost from the announcement that Tata Consultancy Services shares would be credited on Saturday and would start trading on August 25.

Tech pivotal, Infosys Technologies was up 3.34 per cent to Rs 1,537.20, Satyam Computer was up 2.73 per cent to Rs 339.10 and Wipro ended 2.60 per cent higher at Rs 560.85.

In Wednesday's US trading, the Satyam Computer American Depository Receipts (ADR) had jumped 8 per cent to $ 20.50, the Infosys ADR gained 3.7 per cent to $ 48.20 and the Wipro ADR climbed 3.7 per cent to $16.29.

Among index heavyweights, ITC was up 2.80 per cent to Rs 1,034.30 and Hindustan Lever was up 1.36 per cent to Rs 107.70.

ONGC was up 1.57 per cent to Rs 694.80 and Reliance Industries ended 1.02 per cent higher at Rs 475.30.

Meanwhile, the government's announcement that import and excise duties on petroleum products would be cut spurred cement stocks as the markets reasoned this sector would benefit if diesel prices are kept in control.

Gujarat Ambuja Cements was up 4.01 per cent to Rs 316.70, Grasim was up 2.96 per cent to Rs 1,071.10 and ACC was up 2.03 per cent to Rs 266.35.

Cement stocks attracted huge volumes today, and at the end of the day accounted for nearly 10 per cent of the total volumes on the BSE and the National Stock Exchange. About 36 million shares changed hands today and the volume was 24 per cent higher than Wednesday's volumes of 29 million shares.

Auto stocks bounced back after a sharp correction over the past few days. An institutional dealer at a domestic broking firm said, "There was broad based buying after the sharp correction in the indices over the past few days. But the marktes are expected to remain range-bound on concerns over rising oil prices and inflation."

The Tata Motors scrip was up 2.64 per cent to Rs 396.05, Hero Honda Motors was up 2.23 per cent to Rs 448.85 and Maruti Udyog was up 1.94 per cent to Rs 385.30.

Among refinery stocks, HPCL gained 3.2 per cent to Rs 315.50 and BPCL jumped 5.7 per cent to Rs 343.70. However, brokers said the short-term outlook on the sector remained cautious and investors were keeping a close watch on global oil prices before taking a long-term call.