Indian benchmark share indices gained for the fourth straight session to end nearly 2% higher on Tuesday after China's better-than-expected fourth quarter GDP growth led to rally in global equities.
The 30-share Sensex provisionally ended up 254 points at 16,444 and the 50-share Nifty ended up 88 points at 4,962.
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(Updated at 14:21hrs)
Markets have extended their gains tracking firm opening of the European markets. Strong cues from Asia led by buying amongst index heavyweights and rate sensitive shares have also supported the rally.
At 1420 hrs, the Sensex was up 284 points at 16,471 after touching an intraday high of 16,485. The Nifty gained 93 points to 4,966 after touching the intraday high of 4973.
On the global front, Asian markets ended firm post Chinese fourth quarter GDP data. China's gross domestic product for the Oct-Dec quarter, although at a 2.5-year low, was better-than-expected at 8.9%. Shanghai, Nikkei and Straits Times, Hang Seng, Kospi and Taiwan surged between 1-4%. European markets have opened firm during mid-session. CAC, DAX and FTSE have gained by nearly 1% each.
Back home, index heavyweight RIL has gained by nearly 3%. Infosys has gained by nearly 1% on short covering after the stock was beaten down last week as the company had lowered its dollar revenue growth guidance for the fourth quarter.
On the sectoral front, BSE Realty and Metal indices have spurted by almost 4% each. Counters like Capital Goods, Auto, Oil & Gas, Power, PSU, Banks and Consumer Durable have gained between 2-3%.
Rate sensitive counters are up as December headline inflation which fell to a two-year low of 7.47% may prompt the Reserve Bank to cut policy rates at its policy review meet on January 24.
Metal shares have extended the gains on better-than-expected Chinese economic growth data. Hindalco Industries, Sterlite, Tata Steel, Coal India and Jindal Steel & Power have spurted between 2-7%.
Interest rate sensitive Realty pack has extended their gains on expectations that the RBI will start cutting interest rates in the coming months to support the slowing economy. DLF has zoomed by nearly 3%.
L&T has zoomed by nearly 4% whereas BHEL has increased by nearly 2%.
Among Auto shares, Maruti Suzuki is the top Sensex gainer, accelerating by nearly 10% on reports that the company has raised prices of all its vehicles by 0.3% to 3.4% due to adverse foreign exchange movements and a rise in commodity prices. M&M, Tata Motors and Bajaj Auto have gained between 2-3%.
Bank shares are up on hopes of a rate cut by RBI after December headline inflation fell to a 2-year low 7.47%. HDFC Bank, ICICI Bank and SBI are all up 1% each.
Among other software TCS has gained ahead of Q3 earnings today. HDFC Securities is of the opinion that volumes of the software major are likely to grow 3% sequentially with flat pricing.
HCL Technologies has advanced over 3% after the company announced robust Q2 earnings. Wipro has spurted by nearly 2%.
In the broader markets, the small cap and the midcap indices too have extended their gains, both gaining by nearly 1.5% each.
Suzlon Energy has surged 4% after the company's subsidiary, SEFORGE secured a contract worth Rs 600 crore for the supply of forged and machined rings over a period of 5 years.
Reliance Industrial Infra gained 3% after net profit rose 22.5% to Rs 5.99 crore on 16.3% growth in net sales to Rs 15.15 crore in Q3 December 2011 over Q3 December 2010.
The market breadth in BSE remains healthy with 1,880 shares advancing and 868 shares declining.