Markets continued to trade higher after making a gap up opening led by gains across Asian markets and better than expected results posted by HCL Technologies. The Nifty surged 47 points, at 5788 and the Sensex was up 142 points, at 19,270.
Other markets in Asia were also trading in the green. The Nikkei Stock Average was up 1% following gains in tech shares. Hong Kong's Hang Seng advanced 1.4% buoyed by property and resource shares, and Shanghai Composite also gained 0.5%.
Back in India, HCL Technologies, a medium sized software services provider surged 7% after it reported upbeat results which gave fillip to frontline IT shares that were beaten down badly after disappointing Infosys earnings.
The consolidated revenue of HCL Technologies for the third quarter was up 5.6% at Rs 4077.9 crore versus Rs 3862.5 crore in the last quarter. Net profit surged 16.2% to Rs 461.3 crore versus Rs 397 crore seen in the previous quarter.
Other gainers from the IT pack were TCS, up 3% and Infosys surged 1%, pulling the benchmark Sensex up by 40 points.
Financials such as ING Vyasya Bank added 3% and Yes Bank gained 2.9% as they are set to report fourth quarter earnings. Jagannadham Thunuguntla, strategist & head of research from SMC Global Securities expects around companies to report around 18% profit growth this quarter."If that is not met, there could be a decent correction going forward," added Thunuguntla.
Also strong monsoon forecast by IMD (Indian Meteorological Department) may increase farm output and help fight inflation also improved investor sentiment.
Metal producers such as Tata Steel added 1.4%, Sterlite Industries climbed 1.1% and Hindalco Industries gained 1.6% following firm international base metal prices after positive upbeat US housing starts data reported on Tuesday.
Top gainers on the Sensex were Mahindra & Mahindra, up 2.2%, DLF advanced 2% and JP Associates up 1.4%. Top losers on the Sensex were Hero Honda, down 4%, Larsen & Tourbo and Bajaj Auto was trading flat.
Market breadth was positive 1505 stocks advanced for 474 stocks which declined.
