Sensex ends near 3-month high; beaten down stocks rise
BSE Sensex rose today to close near a three-month high hit on Thursday, led by gains in stocks beaten down earlier which rose on short covering, and metals firm Hindalco Industries, following copper's rally on Friday.business Updated: May 06, 2013 17:04 IST
BSE Sensex rose on Monday to close near a three-month high hit on Thursday, led by gains in stocks beaten down earlier, such as Tata Consultancy Services, which rose on short covering, and metals firm Hindalco Industries, following copper's rally on Friday.
Gains also tracked higher Asian shares as investors cheered the upbeat US labour force report which sent Wall Street to an all-time closing high last week.
MSCI's broadest index of Asia-Pacific shares outside Japan climbed nearly 1% on Monday.
Disappointed by the Reserve Bank of India chief's comments on Friday that there was little room for further policy easing, investors are pinning hopes on foreign inflows and government efforts to revive the economy.
"Long-term FII flows is what the market needs for the current levels to sustain, which are scarce," said Deven Choksey, managing director of KR Choksey Securities.
The government has the intent, but commitment and execution are absent, added Choksey.
The benchmark BSE index ended up 0.5%, or 98 points, at 19,673.64, marking its fourth positive close in five sessions.
The broader NSE index rose 0.46%, or 27.05 points, to end at 5,971.05.
Foreign investors have bought $11.97 billion of stocks in 2013 so far, data from the Securities and Exchange Board of India showed.
Technology shares rose on value buying after the recent sell-off. Infosys Ltd rose 1.4% after a steep fall of 22% in April due to poor quarterly results, while Tata Consultancy Services Ltd ended 3.4% higher.
Shares in copper refiners gained on expectations of better realisations after the metal rose more than 6% on Friday, its strongest daily gain in 18 months, as economic stimulus moves by central banks raised investor confidence. Sterlite Industries Ltd shares gained 1.6%, while Hindalco rose 3.7%.
Among other metal stocks, Tata Steel Ltd ended 3.7% higher, while Jindal Steel and Power Ltd gained 2.6%.
Titan Industries Ltd rose 1.5% after reporting a 28.5% jump in its Jan-March profit to Rs. 1.85 billion on Friday.
Glenmark Pharmaceuticals Ltd rose 3.2% ahead of quarterly results on Tuesday, although it could miss the earnings consensus forecast, according to Thomson Reuters StarMine data.
Among stocks that fell, cement makers ACC Ltd fell 1.3% and Ambuja Cements Ltd ended 1.4% lower after their March quarter margins failed to impress investors, dealers said.
Adani Power Ltd shares fell 0.8% after its March-quarter net loss widened to Rs. 5.86 billion from Rs. 2.85 billion in the previous quarter.