Earning hopes provide the pull

STOCK REPORT

Shares closed up 2 per cent on Wednesday on  expectations of robust April-June earnings and sustained buying in blue chips L&T, Reliance Energy, and Grasim.

Volumes on BSE and NSE combined rose 43 per cent from Tuesday to Rs 9,700 crore. The Sensex ended at its highest level since May 22 and Nifty at its highest since May 30.

"Investors sentiment is up as they are betting on the first quarter results of companies, which are likely to be above expectations," Raju Bhavsar, dealer at Pioneer Intermediaries, said.

The Sensex ended at 10919.64, up 257.42 points or 2.4 per cent from Tuesday, after moving between 10940.45 and 10611.35 intra-day.

The National Stock Exchange's 50-share Nifty ended at 3197.10, up 58.45 points or 1.9 per cent, after moving between 3201.20 and 3121.80 intraday. 

The Asian markets ended down on fears that Wednesday's missile tests by North Korea would trigger geo-political tensions in the region. Singapore's Straits ended down 1 per cent, and Japan's Nikkei was down 0.7 per cent.

Major support to the market came from stocks such as L&T, Tata Steel, Grasim Industries and ABB, up 4-5 per cent.

Suzlon Energy, up 7 per cent, was top Nifty gainer. Other notable gainers included Housing and Development Finance Corp, up 5.5 per cent, and Reliance Energy, up 5 per cent. 

Fast moving consumer durable stocks performed well. Godrej Consumer Products was up 4.5 per cent, and HLL was up 3.9 per cent.

"FMCG stock is doing well due to the good monsoon," Mitesh Shah, dealer at Prabhudas Lilladher, said.

Tata Steel rose 4.7 per cent after the company announced a preferential issue of 15 per cent of its equity to mop up funds for expansion plans.

Wipro Corp, Mahindra and Mahindra, National aluminium Co, and Gail India, down 1 per cent each, were major Nifty laggards.

Sugar stocks fell after the government announced that the ban on sugar export would continue till March.

KCP Sugar Corp was down 7 per cent, and Balrampur Chini Mills, Oudh Sugar Mills and Thiru Arooran Sugars were down 4 per cent each.