Sensex recovers 269 points

Broadbased buying in the market, especially in the fast-moving consumer goods and automobile counters, helped the market to snap a five-day losing streak with the Bombay Stock Exchange Sensex gaining by 268.55 points (2.01 per cent).

Shares of Infosys, which offered no surprise in its third quarter results, were lukewarm performers in the stock market, beginning the morning in negative territory, before recovering slightly to end in positive territory.

The Sensex on Thursday ended at 13,630.71 points while the broad-based S&P CNX Nifty rose 2.39 per cent to 3,942.25 points.

The BSE Mid-Cap Index grew 1.31 per cent to 5,895.80 points and small caps maintained their northward run with the BSE Small-Cap Index gaining 1,85 per cent to 7,278.33 points.

In the new year, the index has now gained nearly 4 per cent, despite markets witnessing weak sentiments following anticipation of below-expectation third quarter results.

However, the first third quarter result of the year did not have a major impact on the market though Infosys reported a 51.5 per cent surge in its consolidated third quarter net profit at Rs 983 crore from Rs 649 crore in the corresponding quarter a year ago. Infosys ended at Rs 2,183, up 0.66 per cent from yesterday.

Even after a strong sentiment on Thursday, market analysts are cautious about a further bull run because there are doubts whether other companies will be able to deliver robust growth in their earnings in the third quarter. Also, there are concerns that an appreciating rupee may dent export earnings in this quarter.

"It is hard to predict how the market will behave till the Union Budget is announced. Rising rupee costs continue to be a cause of worry to the infotech sector," a fund manager said. During the quarter, the rupee has gained nearly 4 per cent against the dollar, creating concerns over reduced export revenues for the software industry.

Fast-moving consumer goods and consumer durables stocks were the biggest gainers. The BSE FMCG Index saw the highest rise at 3.25 per cent, followed by the BSE Consumer Durables Index at 2.67 per cent.

The BSE IT Index ended the day with a gain of 2.05 per cent. The Wipro scrip was the top gainer with its price shooting up by Rs 30.60 (1.87 per cent) to Rs 612.20.

Reliance Communication was up 4.83 per cent to Rs 426.90. HLL rose 4.53 per cent to Rs 218, Bharti Airtel 3.91 per cent to Rs 637.05 and TCS 3.49 per cent to Rs 1,277.20.

Automobile stocks were in top gear as crude oil dropped under $54 per barrel. Mahindra & Mahindra raced ahead to a 4 per cent gain to Rs 910, Maruti was up 2.8 per cent to Rs 905, Bajaj Auto 2.2 per cent to Rs 2760 and Tata Motors 1 per cent to Rs 918.

Only two stocks in the Sensex ended in the red "" HDFC lost 0.28 per cent to Rs 1,522.50 and HDFC Bank lost 0.01 per cent to Rs 999.35.

The ailing IFCI Ltd, which on Wednesday sold its 7 per cent stake in the National Stock Exchange (NSE) rose a whopping 28 per cent to Rs 20.69. The company is expected to have received Rs 780 crore from the NSE's new foreign partners for the stake sale.

The BSE FMCG index gained 3.25 per cent, followed by 2.67 per cent growth in the Consumer Durables Index and 2.05 per cent increase in the IT Index.

Out of the 2,702 stocks traded, 1,759 (65 per cent) moved northwards, 886 (32 per cent) trailed and 57 remained neutral.