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The Sensex rose for a second straight day today, as recent underperformers such as ICICI Bank gained in a session marked by the expiry of derivatives and as technology shares edged up on hopes about upcoming quarterly results.
Despite ending the fiscal year on a positive note, the Sensex fell three per cent in the quarter after edging down 0.1 per cent in March, marking its first quarterly fall in five.
March has been a particularly volatile month because of lingering disappointment over the 2013-14 budget unveiled late in February. Sentiment has also been marred since the DMK withdrew from the ruling UPA and by the Reserve Bank of Indias cautious stance on future rate cuts.
Broader sentiment is thus expected to remain weak although much may depend on the current account balance data due later in the day after the country reported a record high deficit in the July-September quarter.
Current levels are attractive but CAD numbers are a concern and deteriorating GDP numbers on a quarter on quarter basis are another concern for the markets, said K K Mital, head of portfolio management at Globe Capital.
Threat of early elections and reforms not sailing through are bothering the markets currently.
The Sensex ended up 0.7 per cent, or 131.24 points, at 18,835.77, rebounding after hitting its lowest intraday level since November 26, 2012. March derivatives expired at the end of the session.
However, the index rose 0.5 per cent for the week, marking its first weekly gain in three. Markets will be closed tomorrow for a public holiday.
The broader Nifty rose 0.73 per cent, or 40.95 points, to 5,682.55, after briefly breaking below its 200-day moving average.
Recent underperformers led gainers, with ICICI Bank rebounding from earlier falls of as much as 1.44 per cent to gain 2.4 per cent. Shares in the countrys biggest private sector lender had fallen 4.5 per cent in the previous six sessions.
Other shares also gained on value buying, with HDFC Bank ending up 1.8 per cent and Larsen & Toubro rising 2.15 per cent.
Among other gainers, Tech Mahindra rose two per cent and Satyam Computer Services gained 1.02 per cent after Goldman Sachs initiated coverage of both companies with buy ratings.
Goldman said the planned merger between the two companies would create the fifth largest Indian IT offshoring company by revenue, offering adequate scale to target potential big-ticket deals.
Infosys rose 1.22 per cent ahead of its quarterly earnings due on April 12, while HCL Technologies gained 2.5 per cent.
Aurobindo Pharma surged 12 per cent after the company said the US Food and Drug Administration had lifted import alerts for some products manufactured at its Hyderabad facility.
Novartis India rose 3.75 per cent after parent Novartis AG said in a statement it would sell shares of its Indian unit via stock exchanges to reduce its holding.
Private sector lender IndusInd Bank gained 1.3 per cent and iron ore producer NMDC ended 2.1 per cent higher, as the stocks will be included in the NSE index from April 1.
