Indian shares rallied 1.7 per cent on Tuesdsay to their highest close in almost six weeks, as banks and automakers led a wave of positive sentiment caused by easing domestic inflation and above-forecast GDP growth in China.
The Bombay Stock Exchange benchmark Sensex rose 1.71 per cent, or 276.69 points, to 16,466.05, with all but six of its components advancing. It was the highest close since December 8. Investors piled into Maruti Suzuki and reversed recent falls in index heavyweight Reliance Industries, powering a rally that began yesterday after inflation data.
“The expectations are there for good news from the central bank, and there's good news from overseas on the wider front," said Ketan Dedhia, managing director of Mumbai-based Nalanda Securities.
| A GOOD START FOR 2012 | ||
| Jan 17 ’12 | % chg* | |
| Indices | ||
| BSE S-cap | 6,258.45 | 12.76 |
| BSE M-cap | 5,655.32 | 10.13 |
| BSE 500 | 6,258.40 | 8.30 |
| Nifty | 4,967.30 | 7.42 |
| Sensex | 16,466.05 | 6.54 |
| Top gainers | ||
| Tata Steel | 442.80 | 32.08 |
| L&T | 1,265.50 | 27.17 |
| Sterlite Ind | 109.30 | 21.99 |
| Tata Motors | 217.30 | 21.80 |
| Hindalco | 140.44 | 21.33 |
| Top losers | ||
| Bajaj Auto | 1,452.40 | -8.81 |
| TCS | 1,104.30 | -4.90 |
| Hero | 1,826.70 | -4.12 |
| Infosys | 2,660.25 | -3.79 |
| GAIL | 370.25 | -3.61 |
| *change over December 30, 2011 Data compiled by BS Research Bureau | ||
Maruti shares closed up 10 per cent at Rs 1,108.35, after rising as much as 11 per cent, after the company said it would raise prices across its model range to offset a rise in commodity costs. Reliance, fell 4.7 per cent in the previous four sessions, closed up 4.1 per cent at Rs 742.05.
Automobile companies led gains all day, with the sector index ending up 2.6 per cent. Tata Motors closed up 1.7 per cent on news that global sales rose 27 per cent in December, while shares of Mahindra & Mahindra closed up 2.6 per cent at Rs 705.60.
Shares in India mirrored gains across Asia, as bourses advanced on slightly better-than-expected Chinese economic growth data. China, a key trading partner of India, said gross domestic product grew at its weakest in two-and-a-half years in the fourth quarter, slowing to an annual rate of 8.9 per cent, but beating expectations for an 8.7 per cent rise.
Shares of airline companies rose ahead of a crucial meeting of ministers in New Delhi to discuss allowing 49 per cent foreign direct investment in the sector. Kingfisher Airlines closed up 4.8 per cent at Rs 25.10, while SpiceJet and Jet Airways ended up 10.1 per cent and 10.3 per cent, respectively.
The National Stock Exchange index Nifty closed up 1.92 per cent at 4,967.30 points.
