Mumbai: Snapping three-day losing string, the BSE benchmark Sensex today surged by 351 points as investor sentiment got a boost from better-than-expected fourth quarter earning figures reported by TCS and HCL Tech.
“The markets also took note of S&P report, which stated that it may upgrade India’s outlook if the next government (after the general elections) addresses some of the country’s fiscal and economic challenges on priority,” said Jayant Manglik, President, Retail Distribution, Religare Securities.
In the fifth phase the of general elections to elect a new government, 121 constituencies across 12 states went to polling today.
After a promising start, the BSE 30-share index gradually improved further to settle the day at 22,628.84, a rise of 351.61 points or 1.58 per cent from its previous close.
The gain comes after the index tumbled by 438.10 points or 1.93 per cent in the previous three days.
The 50-issue CNX Nifty of the NSE also bounced back by 104.10 points or 1.56 per cent to 6,779.40, within the striking distance of crucial 6,800-mark.
Buying was seen across-the-board as all 12 sectoral indices closed the day with gains between 0.71-2.79 per cent.
Mid-tier counters also witnessed strong buying support from retail investors, with BSE-Midcap and BSE-Smallcap indices gaining 1.47 per cent and 1.43 per cent, respectively.
Hectic short-covering ahead of expiry of April contract of futures and options next week also helped boosted buying, brokers said. Investors were creating fresh positions in blue-chip available at attractive levels before a long week-end, they added.
Markets will remain closed tomorrow for ‘Good Friday,’ and reopen on Monday for regular trade.
“TCS was up by 1.23 per cent Q4 FY2014 results, with net profit rising by 48.2 per cent. HCL Tech was up by 0.64 per cent after reporting 59 per cent increase in net profit in Q3FY14,” said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
“Better-than-expected fourth quarter earnings from TCS and HCL Tech’s stellar performance boosted the sentiment,” said Manglik.
Hindalco spurted by 4.40 per cent, the best gain among Sensex stocks. Tata Motors closely followed at 4.24 per cent.
ICICI Bank rose 3.25 per cent, while SBI gained 2.96 per cent and Axis Bank 2.31 per cent.
Wipro, which reported 41 per cent profit for the last quarter of the previous fiscal after market hours, jumped 2.39 per cent in anticipation of good numbers.
“Markets continue to be driven by expectations of a favourable outcome of elections…. Early implementation of important domestic reforms is needed, for markets to sustain and move up from current levels,” said Dipen Shah of Kotak Securities.
Among the S&P BSE sectoral indices, realty rose by 2.79 per cent, auto 2.25 per cent, metal 1.85 per cent, Power 1.81 per cent, Oil&Gas 1.79 per cent, bankex 1.78 per cent, consumer goods 1.59 per cent, FMCG 1.29 per cent, IT 1.21 per cent and Teck 1.01 per cent.
Meanwhile, foreign institutional investors (FIIs) sold shares worth a net Rs 44.69 crore yesterday, as per provisional data from the stock exchanges.
The market breadth turned positive as 1,724 stocks ended in the green while 1,050 stocks finished in the red. The total turnover rose to Rs 2,956.94 crs from Rs 2,666.76 crs yesterday.
Jignesh Chaudhary, Head Of Research, Veracity Broking Services said: “Overnight US stocks rose 1 per cent, as U.S. industrial production increased more than forecast in March …Federal Reserve Chair Janet Yellen seen confident about the central bank’s commitment of keeping interest rates low. This boosted the global equities, helping local indices to trade strong”.
Asian stocks ended narrowly mixed. Key benchmark indices in Hong Kong, Singapore and Taiwan closed better while from China and South Korea finished lower. Japan’s Nikkei settled almost stable
European markets were quoting lower in their late morning deals on concern over the escalating crisis in Ukraine. The CAC was down by 0.10 per cent, the DAX by 0.12 per cent and the FTSE by 0.20 per cent.