The markets recovered in late trades today to end firm, ignoring the weak cues emanating from the US and Asia. The Sensex recouped around 230 points from the day’s lows to end at 17,509, higher by 87 points and the Nifty closed at 5,235, up 25 points. Information technology (IT) stocks traded strong for the second consecutive day, while the metal and realty counters bounced back towards close.
The US markets had dropped overnight with the Dow weakening by 37 points and the Nasdaq shedding 30 points. Asian stocks fell for the first time in four days after a decline in the commodity prices and the decision by the People’s Bank of China to increase the Cash Reserve Ratio (CRR) by 50 bps after five quarters of easy monetary policy. Meanwhile, in the pre-Budget interaction with state finance ministers, Union finance minister Pranab Mukherjee said there was enough wheat and rice stocks and proposed open market sale to offload these stocks, thereby increasing foodgrain availability and easing prices.
ACC was the top gainer on the Sensex, strengthening by 5.3 per cent at Rs 946. Cement makers are reportedly set to raise the prices by Rs 3-5 per 50 Kg a bag from Friday in the northern, southern and western markets on the back of improved demand.
Infosys and TCS hit a new 52-week highs at Rs 2,686 and Rs 788 respectively on follow-up buying after IT bellwether Infosys raised earnings and revenue guidance for the year ended March 2010.
Oil marketing companies rose after crude oil prices declined over two per cent on the New York Mercantile Exchange. IOC strengthened by more than two per cent to Rs 324, while BPCL and HPCL added around one per cent to Rs 631 and Rs 386 respectively. Bajaj Auto gained nearly one per cent at Rs 1,712 after reporting good Q3 results on the previous evening. M&M was the top loser on the Sensex, weakening by nearly three per cent at Rs 1,194. Sun Pharma, Sterlite and SBI lost more than one per cent each at Rs 1,549, Rs 862 and Rs 2,177 respectively.
The market breadth was strong. Out of 2,969 stocks traded on the BSE, there were 1,694 advancing stocks as against 1,195 declines. KR Choksey Managing Director Deven Choksey said, “The Nifty is likely to consolidate betwen 5,150 and 5,350 till the end of the result season and thereafter resume the bull run with a target of 5,475.”
