Sensex surges by 235 points; RIL, Infosys lead gains
The BSE benchmark Sensex bounced back smartly by 235 points on Wednesday, with heavyweights RIL and Infosys leading the gains on frantic buying by fund houses amid firm global cues and impressive GDP growth.business Updated: Sep 01, 2010 17:34 IST
The BSE benchmark Sensex bounced back smartly by 235 points on Wednesday, with heavyweights RIL and Infosys leading the gains on frantic buying by fund houses amid firm global cues and impressive GDP growth.
Shrugging off slower export growth in July, the 30-share barometer of the Bombay Stock Exchange ended the day higher by 234.75 points, or 1.31 per cent, at 18,205.87.
The National Stock Exchange's wide-based 50-share Nifty Index added 1.29 per cent to finish at 5,471.85.
Analysts said the investor sentiment turned buoyant globally after data showed China's manufacturing grew at a faster pace in August and Australia's economy grew more than economists estimated in the second quarter.
Aggressive buying was seen across sectors, specially in metal, real estate, telecom and IT.
"Firm global cues and bargain hunting helped the market to recover smartly," Unicon Financial CEO Gajendra Nagpal said.
Snapping its seven-day losing streak, Reliance Industries Ltd increased by 2.14 per cent to settle at Rs 938.55.
"RIL's fundamentals are strong, through the scrip has been under-performing for sometime. Today's rise may be attributed to buying at lower levels," Nagpal added.
Infosys, which carries the maximum weight in the Sensex after RIL, climbed 2.43 per cent. TCS moved up 1.65 per cent and Wipro 0.64 per cent.
IT counters attracted buying, as positive data from the US helped alleviate continued investor anxiety over the world's largest economy's strength, analysts said.
Telecom stocks were on a high, after the government on Wednesday allocated 3G spectrum to operators. Anil Ambani-led Reliance Communications zoomed 5 per cent, the most in the Sensex pack.
The country's top telecom operator Bharti Airtel, too, rose by 3 per cent.
Metal stocks were shining on Dalal Street today, with Hindalco gaining 4.51 per cent, Sterlite 3.47 per cent and Tata Steel 2.84 per cent. Jindal Steel rose 1.66 per cent.
Brokers said investor confidence improved after impressive 8.8 per cent GDP growth in the June quarter. A jump of 34.3 per cent in imports during July also demonstrated healthy economic activity in the country, brokers said.
DLF surged 2.49 per cent, ICICI Bank 2 per cent, SBI 0.30 per cent and L&T 1.24 per cent.
In the BSE-30 scrips, 26 firms settled with gains, while four stocks lagged behind and ended in the red.
Maruti Suzuki rose 1.18 per cent on healthy monthly sales data. Tata Motors rose 0.13 per cent.