Global cues lift Sensex

Stocks made one of their sharpest gains in almost six weeks on positive global cues and on market view that the recent fall in prices offered buying opportunity. Capital goods and metal stocks were the biggest gainers.

IT stocks Infosys Technologies and Satyam Computers, which were beaten down after it was felt that their earnings would be hit badly by the recent rupee appreciation, also rose on analysts' view that the pace of the currency appreciation would slow.

The benchmark Sensex index of Bombay Stock Exchange climbed 200.69 points or 1.43 per cent to 14,293.72, led by HDFC (up 4.24 per cent to Rs 1,825.25), ACC (up 3.36 per cent to Rs 825.30), Tata Steel (up 3.18 per cent to Rs 614.15), Grasim Industries (up 2.96 per cent to Rs 2,432.45) and BHEL (up 2.89 per cent to Rs 1,349.30).

The benchmark Sensex shed nearly 500 points over the last 7 sessions. The broader NSE-50 index rose 56.95, or 1.4 per cent, to 4,170 points.

Among the sectoral indices, BSE Metal, which rose by 2.84 per cent, was the top gainer, followed by the BSE Capital Goods index (up 2.31 per cent).

Vijay L Bhambwani, CEO of BSPLindia.com said: "It was only the global cues that shaped the market on Thursday. Positive Asian markets as well as overnight US gains resulted in a strong market breadth. Tomorrow too, the markets are likely to take cue from the US markets. Cement stocks look good and Reliance Industries will perform better."

The BSE Mid-cap index (up 1.58 per cent) and the BSE Small Cap index (up 1.34 per cent) also rose.

About 1662 shares advanced, 763 shares declined, and 88 shares remained unchanged. IT stocks led by Infosys Technologies (up 1.90 per cent to Rs 2,020.05) and Satyam Computer (up 0.87 per cent to Rs 490.60) gained on expectation of a correction in rupee value.

Shares of Deccan Aviation and SpiceJet, the nation's biggest budget carriers, also rose after they gained passenger bookings due to the workers' strike in the state-run Indian Airlines. SpiceJet shares advanced Rs 3.75, or 7.1 per cent, to Rs 56.7, while Deccan gained Rs two, or 1.5 per cent, to Rs 135.4.

Foreign investors bought a net Rs 545 crore ($129.4 million) worth of Indian shares on June 12.

Reliance Industries gained Rs 8.5, or 1.1 per cent, to Rs 1,692. The owner of India's biggest refinery yesterday said it closed one of its four coker units at Jamnagar in western India for maintenance.

It said the shutdown won't hurt the output at the refinery.