Sensex surges over 317 pts on the back of IT, metals
Stocks led by the information technology and metal sectors pushed up the BSE Sensex by over 317 points to 11,134.99 on expectations that earnings growth will recover as the market has nearly bottomed out.business Updated: Apr 23, 2009 17:09 IST
Stocks led by the information technology and metal sectors pushed up the Bombay Stock Exchange benchmark Sensex by over 317 points on expectations that earnings growth will recover as the market has nearly bottomed out.
The Sensex, which had lost nearly two per cent in the last three trading sessions, bounced back to close 317.45 points up at 11,134.99, after touching the day's high of 11,203.28.
The information technology index, led by three heavyweights, gained the most, 5.22 per cent, to reach 2,549.71. Wipro, the country's third-largest software developer, was up 13.62 per cent to Rs 320 after Morgan Stanley and ICICI Securities raised their target price for the stock.
Tata Consultancy Services, the largest software developer, added 4.60 per cent to reach Rs 567.95 and Infosys Technologies, the second largest, rose 5.11 per cent at Rs 1,449.85.
The metal sector index was the second-best performer, rising 5.20 per cent to 7,086.02, as Tata Steel rose 8 per cent, JSW Steel 9.04 per cent and SAIL 6.79 per cent. International rating agency J P Morgan Chase has said the companies have had their earnings estimates raised for the first time in more than a year and further upgrades, if any, may signal that share prices have "bottomed out".
Marketmen said foreign funds were seen returning to the Indian equity market, adding that the two per fall in the last three trading sessions seemed overdone.
The realty index spurted 4.21 per cent to 2,234.30 as segment major and Sensex-linked DLF rose 4.84 per cent, HDIL 11.71 per cent and Indiabull Real Estate 11.06 per cent.
The auto index rose 3.92 per cent to 3,418.37 after Hero Honda added 3.72 per cent to reach Rs 1,122.20 as Citigroup raised its recommendation on the auto firm's stock to "buy" from "hold", saying that the company’s earnings "visibility" is improving. Tata Motors gained 5.64 per cent and Maruti Suzuki 6.02 per cent.
The banking index gained 3.16 per cent to 5,441.19, teck 3.12 per cent to 2,095.68, capital goods 2.83 per cent to 7,787.30, power 2.26 per cent to 2,118.32, oil and gas 2.25 per cent to 7,998.74, PSU 2.09 per cent to 5,928.80, healthcare 0.83 per cent to 3,037.47 and FMCG 0.09 per cent to 2,109.98.
With buying spread widely, the midcap index rose by 1.48 per cent to 3,534.18 and the smallcap index by 0.94 per cent to 3,999.78.
However, the consumer durable index fell 0.06 per cent to 1,771.62.