The Sensex and Nifty indices have shot up by nearly 1060 and 300 points respectively in the last two days. Frenzied buying in index pivotals led by Reliance industries, ICICI Bank and Bharti Airtel coupled with short covering triggered a solid rally on the bourses. A sharp fall in crude oil prices for the third day in a row yesterday also boosted sentiments.
The rally was spread across sectors barring IT and metal. The market breadth was strong.
On the New York Mercantile Exchange, August 2008 crude settled USD 5.31 lower at USD 129.29 a barrel yesterday, which helped in boosting the indian bourses.
European markets, which opened after Indian market, were in the red and Asian markets were mixed.
The wholesale price index (WPI)-based annual rate of inflation rose to 11.91 per cent in the week ended July 5, 2008, marginally higher than the 11.89 pc rise in the previous week.
The 30-share BSE Sensex was up 523.55 points or 3.99 per cent at 13,635.40 at the end of the session. It hit a high of 13,684.27 in late trade. At the day's high, the Sensex surged 572.42 points.
The Sensex lost 18.51 points at day's low of 13,093.34 hit in mid-morning trade.
The broader based S &P CNX Nifty index of National Stock Exchange (NSE) also advanced 145.05 points or 3.67 pc and ended firm at 4,092.25 points from it last close of 3947.20 points.
The market breadth was strong on BSE with 1614 shares advancing as compared to 990 that declined. 83 remained unchanged.
The total turnover on BSE surged in last hour of trade, amounting to Rs 5312 crore as compared to Rs 3675 crore during the session.
The BSE major indices also were in limelight as BSE BANKEX index shot up by 461.29 points, or 8.05 per cent and closed firm at 6188.89 points, followed by CG index by 384.50 points or 3.57 pc at 11,146.51 points, OILS &GAS index by 379.96 points or 4.29 pc at 9232.04 points, PSU index by 254.48 points or 4.34 pc at 6121.15 points, REALTY index by 242.22 or 5.47 pc at 4670.24 points, MID CAP by 74.05, or 1.63 pc at 5239.39, POWER index by 49.04 points, or 3.43 pc at 2381.81 points, SML CAP by 68.77 points,or 1.08 pc at 6455.89 points, AUTO index by 65.15 points,or 1.84 pc at 3600.93 points and FMCG index by 54.10 points or 2.79 pc at 1996.04 points.
But the BSE IT and METAL indices suffered a setback by 94.55 points, or 2.57 pc at 3580.65 points and 28.91 points or 0.25 per cent at 11,668.39 points on profit booking by local operators.
Shares from banking and financial services providers rallied after the latest data showed inflation rising at a slower pace than expected. India's largest private sector bank in terms of net profit ICICI Bank vaulted 13.02 pc to Rs 622.95 on 30.74 lakh shares after the bank's American depository receipt (ADR) rallied 9.4 pc to USD 29.02 on the New York Stock Exchange (NYSE) yesterday. It was the top gainer from Sensex pack. HDFC Bank was up 7.54 pc to Rs 1030.35, and State Bank of India moved up 5.37 pc to Rs 1293.
India's largest dedicated housing finance company, in terms of operating income, HDFC soared 10.13 pc to Rs 2080. The stock rallied 9.91 pc yesterday after the company's chairman Deepak Parekh denied rumours that Citigroup may sell its 11.74 pc stake in the firm.
India's largest private sector firm by market capitalization and oil refiner Reliance Industries advanced 4.69 pc at Rs 2110 on 14.12 lakh shares. The stock moved in a range of Rs 2125 and Rs 1995.05 in the day.
Reliance Communications, the country's second largest cellular services provider in terms of market capitalisation, was up 3.61 pc to Rs 433. DLF was up 6.65 pc at Rs 455.55 followed by Bharti Airtel by 7.50 pc to Rs 805 and Jaiprakash Associates by 8.86 pc to Rs 162.25 were the other key gainers from the Sensex pack.
Most IT pivotals declined after India's third largest software services exporter Wipro said it was cautious in the near term, echoing its larger rivals TCS and Infosys. Wipro slumped 4.23 pc to Rs 363.75. The company posted 3.16 pc rise in consolidated net profit to Rs 907.8 crore on 5.18 pc rise in total income to Rs 6087.1 crore in Q1 June 2008 over Q4 March 2007. The company announced the results before trading hours today.
India's fourth largest software services exporter Satyam Computer Services plunged 7.53 pc to Rs 383 on 45.77 lakh shares. It was the top loser from the Sensex pack. The company reported 17.32 pc rise in consolidated net profit to Rs 547.70 crore on 8.47 pc increase in consolidated sales to Rs 2620.83 crore in Q1 June 2008 over Q4 March 2008. The company declared the results before market hours today.
India's second largest software services exporter Infosys was down 1.76 pc to Rs 1555.
However, India's largest software services exporter TCS staged a strong recovery from day's low of Rs 748.60. It rose 1.54 pc to Rs 791.20. However, Ranbaxy was down 3.72 pc to Rs 435.40, Tata Steel came down 3.38 pc to Rs 586.90 and ACC eased 1.06 pc to Rs 533.10.