Asian recovery, RIL, IT stocks shoot-up Sensex

Mumbai, Mar 6: The 30-scrip Sensex today rebounded by an encouraging 282.05 points on the Bombay Stock Exchangw to close in the green at 12,697.09, buoyed by the sledgehammer performance from index heavyweight Reliance Industries (RIL) and IT major Wipro and recovery across Asian markets.

However, today's recovery was not supported by market-breadth as losers outpaced gainers, market analysts pointed out.

On the other hand, the Nifty Index at the NSE also staged a smart recovery by 2.21 per cent to close at 3,655.65 from it's previous close of 3,576.50 points At the BSE, Wipro led the rally in IT shares jumping by 8 per cent to Rs 582. IT bellwether Infosys gained 6 per cent to Rs 2130, Satyam Computer gained 5 per cent to Rs 435.50 and TCS advanced 3 per cent to Rs 1198.

''The recent easing of the Rupee triggered renewed buying for IT shares. The rupee's fall will ease pressure on their profit-margins.

The IT sector derives a lion's share of its revenue in dollars. In early trade today, the Indian Rupee was at 44.550/560 per dollar, extending its move off yesterday's trough of 44.695, the lowest since 21 December 2006, whereing it had closed at 44.625/640,'' an expert opined.

Besides, Reliance Industries (RIL) rose by 3.5 per cent to Rs 1304.05, gaining on bargain-hunting after a recent steep fall in the counter. RIL enjoys 11.1 per cent weightage in the BSE Sensex.

Among the Bankex indices, ICICI Bank surged by 4 per cent to Rs 854. The stock enjoys 9.3 per cent weightage in the barometer Sensex. ICICI Bank had said on Saturday that it plans to transfer investments in four subsidiaries to a new wholly-owned unit, ICICI Holdings, and may list the unit next year.

Cement shares came off the lower level in volatile trade. ACC surged by 5.9 per cent to Rs 861.50, while Grasim gained 1.4 per cent to Rs 2133 and Gujarat Ambuja Cements gained 1.7 per cent to Rs 113.80.

Steel shares recovered from an intra-day decline. State-run Steel Authority of India advanced by 1.2 per cent to Rs 98.20, off the session's low of Rs 91.50. Tata Steel ended flat at Rs 421, off the session's low of Rs 404.55.

Bharti Airtel gained by 4.7 per cent to Rs 724. L&T rose by 3 per cent to Rs 1427. NTPC dropped nearly 3 per cent to Rs 132.80.

Asian shares recouped some of its recent steep losses as investors struck bargains. Key benchmark indices in the Asian region rose 1 per cent to 2 per cent.

Analysts attribute the heavy selling of the last few days to worries pertaining to the US economy, volatile markets in China, and more frequently, the unwinding of yen carry trades, or when investors borrow the yen to take advantage of low interest rates in Japan, and then invest in higher-yielding assets.

Global markets will closely eye this week's US economic data such as reports on employment, productivity, unit labour costs and factory orders. US stocks had ended lower yesterday, undermined by rising concerns about defaults in the US subprime mortgage market.

The Dow Jones industrial average fell 63.69 points, or 0.53 per cent, to 12,050.41.

The Standard&Poor's 500 Index declined by 13.05 points, or 0.94 per cent, to 1,374.12.

The Nasdaq Composite Index tumbled by 27.32 points, or 1.15 per cent, to 2,340.68.

Oil steadied above USD 60 a barrel, after dropping more than 2 per cent yesterday, on fears of faltering demand. US crude edged up 14 cents to USD 60.21 a barrel, brokers added.

UNI