If Monday was about Reliance Industries, Tuesday belonged to Infosys and TCS. The two stocks added over 90 (index) points to the Sensex, contributing over half of the 156.77 points the BSE benchmark rose today. The Nifty rose 1 per cent or 50 points to end at 4,948.90.
IT stocks bounced back in style after the hammering since the US credit downgrade. The BSE IT index rose 4 per cent, more than any other sectoral index. TCS was the top gainer rising over 6.5 per cent while Infosys advanced over 3.5 per cent. HCL Tech rose 2.5 per cent while Wipro closed flat.
Consumer durables and capital goods stocks advanced nearly 1.5 per cent. Banking and metal stocks closed 0.5-1 per cent higher.
On the Sensex, 20 of the 30 stocks closed higher. Bajaj Auto, BHEL, Bharti and L&T were the other big gainers. Among the laggards, ONGC, Cipla and NTPC declined 2-3 per cent. DLF's poor run continued, but the stock closed flat today.
Reliance rose over 1 per cent, and also regained its throne as the most valued Indian firm, knocking off Coal India. Coal India pared losses, closing nearly 1 per cent lower amid workers' demand for higher wages.
Stocks that were hammered over the past few days found some favour with buyers. GTL Infra rose 11 per cent and KS Oils gains 10 per cent.
Analysts continued to have a bearish outlook on the markets. Shankar Sharma, Director & Global Equity Strategist of First Global said, "I don't hold out much hope for any sizeable move that can take you to the highs or near the highs because you can get a 1,000 point rally on the Sensex... that will not do too much good...what is required is a broad based move ... which takes up 70-80 per cent of the market...I don't see that happening ...there are far many factors against that happening."
Earlier, the markets opened lower and continued to be choppy despite modest gains on Asian bourses. South Korea's Kospi gained 4 per cent, Hong Kong's benchmark Hang Seng rose 1.5 per cent and Japan's Nikkei finished with over 1 per cent gains.
However, the benchmark indices gained strength on firm European trade, rising to intraday highs. At 1600 hours, France's CAC 40 and Britain's FTSE were trading 1 per cent higher.
Shankar Sharma, Director & Global Equity Strategist of First Global said, "I don't hold out much hope for any sizeable move that can take you to the highs or near the highs because you can get a 1,000 point rally on the Sensex... that will not do too much good...what is required is a broad based move ... which takes up 70-80 per cent of the market...I don't see that happening ...there are far many factors against that happening."
Overnight, the Dow closed 37 points or 0.3 per cent higher, after surging 200 points in intraday trade. Analysts will take cues from the Fed's annual speech later this week.
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