Sensex up 321 points, back in 13,000 zone

The benchmark BSE Sensex shot up by 321.33 points (2.50 per cent) to 13,177.74 on Monday, the highest close in more than two weeks, as banking, information technology and metal stocks rose in anticipation of better-than-expected fourth-quarter earnings.

Monday's rise meant that the market has come out of the fall of about 5 per cent (617 points) to 12,455.37 on April 2, the next trading session after the Reserve Bank of India increased the cash reserve ratio (CRR) for banks, raising fears of interest rate hikes.

With Monday's gain, the Sensex has risen by 722.37 points in four trading sessions.

The broad-based National Stock Exchange (NSE) S&P CNX Nifty crossed the 3,800 mark, ending 91.50 points up (2.44 per cent) at 3,843.50. 

REBOUND
TOP 5 SECTORAL GAINERS
Name	9-Apr-07	% Change*
Bankex	6580.99	3.28
Metal	8905.01	3.26
FMCG	1774.04	3.11
Cap. Goods	9213.99	2.89
Cons. Durables	3703.24	2.75
TOP 5 SENSEX GAINERS
Name	9-Apr-07	% Change*
Tata Steel	493.30	6.04
ITC	155.35	4.90
Maruti Udyog	790.25	4.57
Reliance Commun	415.60	4.57
SBI	988.75	4.30
SENSEX LOSER
Name	9-Apr-07	% Change*
Bajaj Auto	2296.85	-0.47
*Over April 05 2007

All 11 sectoral indices ended in green, with BSE Bankex gaining 209.30 points (3.28 per cent) to 6,580.99, followed by BSE Metals (up 3.26 per cent) and IT (up 2.26 per cent). The BSE Metal Index is up 6.67 per cent since last week.

"Monday's rally does not mean that there will be a significant change in IT stocks performance ahead. There are many negatives such as currency appreciation and domestic taxation which continue to affect the stocks. For example, 75 per cent of Infosys' earnings come from the US. With the rupee appreciating, the company's revenue figure would contract," said Rishi Maheshwari, IT analyst with Networth Stock Broking. He felt IT performance could "not be much enterprising" on a short term call.

Infosys, India's second largest software exporter, is to announce its quarterly results on Friday. The appreciation in the rupee has been a worry for IT stocks, as around 60 per cent of their transactions are in dollar terms.

The Asian markets were firm on Monday, following a dip in the US unemployment figures. This drop means that the US economy, which is Asian firms' top export destination, would not be reducing its demand.

Metal stocks have been growing for the last few days. Tata Steel was the top gainer, scaling Rs 28 (6 per cent) to Rs 493.3. SAIL was up 3.1 per cent to Rs 118.25 and JSW Steel Ltd gained 2.4 per cent to Rs 508.95.

"There is a sentiment in the market that domestic steel prices could move up in a few weeks. Since January, international steel prices have gone up. But, considering the inflationary conditions in the country, raising of prices appears difficult. We remain neutral on the sector," said Hitesh Agrawal, metal analyst with Angel Broking.