Sensex surges 185 pts; L&T biggest gainer at 4%
Strong results from Larsen and Toubro coupled with higher Asian cues pushed the BSE benchmark Sensex up by more than 182 points in early trade today.business Updated: May 20, 2011 17:10 IST
Mumbai(PTI) The BSE benchmark Sensex on Friday rose by nearly 185 points as higher earnings by L&T and Tata Power and firming European markets boosted investor confidence.
The Bombay Stock Exchange (BSE) benchmark Sensex shuttled in the range of 18,429.47 and 18,161.38 before closing at 18,326.09, up 184.69 points.
The broad-based National Stock Exchange index Nifty also rose by 58.25 points to 5,486.35.
Market analysts said a firming start in European stocks preceded by a upswing in the US markets on Thursday bolstered the trading sentiment.
The capital goods sector index gained the most by 2.31% to 13,195.16, as Larsen and Tourbo stocks surged by 3.57 percent, extending yesterday’s 5.8% jump.
Brokers said L&T attracted good buying support after the company reported handsome quarterly and yearly earnings.
Tata Power was another leading gainer at 1.67%.
Pharma major Wockhardt also rose by 5.66% after it turned to a profit quarter ended March 31 from losses a year-ago.
Blue-chips Reliance Industries and Infosys Technologies too ended the day higher. RIL rose by 0.71% and Infosys by 0.15%.
Recently bashed auto, healthcare, power, realty, metal and banking counter also saw some buying activity. Analysts said falling commodity prices easing inflationary encouraged institutional investors to turn to stocks.
The US crude oil and and six industrial metal on the London Metal Exchange sank upto 1.7% on Friday.
The two-day surge is a breather for investors after a series of downfalls recently. The bellwether index has lost over 11% this calender year over concerns that an unrelenting inflation and higher borrowing costs will hurt corporate earnings.