After a listless start and a subsequent long choppy ride, the Indian stock market rallied smartly in the final hour today as investors indulged in some hectic buying at several counters from across various sectors. Besides bargain hunting, a fairly steady trend in European markets contributed to the upmove in the final hour.
The key indices Sensex and Nifty, which were limping along till then, swinging between gains and losses, jumped sharply and eventually ended the session with solid gains.
The Sensex, which declined to 19,457.21 during the day, rose to 19,671.17 in late afternoon trades and finally ended at 19,635.72, recording a gain of 134.64 points or 0.69%. The Nifty closed at 5939.70 with a gain of 41.50 points or 0.7%, after rising to 5947.55 from a low of 5883.15.
Information technology stocks saw some hectic buying and contributed significantly to the market's bright close. Stocks from realty, healthcare, power and oil sectors too posted impressive gains.
Automobile and FMCG stocks moved up as well. Bank and metal stocks, which were quite subdued early on, surged higher in the final hour. Select capital goods and consumer durables stocks too closed on a positive note.
ONGC moved up by over 4%, topping the list of Sensex gainers. Bajaj Auto and Maruti Suzuki gained 2.4% and 2.2%, respectively. BHEL, Cipla, Wipro, Sterlite Industries, NTPC, Infosys and Hindustan Unilever moved up by 1.5% - 2%.
Dr Reddy's Laboratories, Tata Consultancy Services, Hindalco, Mahindra & Mahindra, ICICI Bank, State Bank of India, Tata Motors, Tata Power, Sun Pharmaceutical Industreis and ITC also closed on a firm note. Reliance Industries and Tata Steel ended with modest gains.
DLF ended 3.7% up.. ACC, Ranbaxy Laboratories, Ultratech Cement, HCL Technologies, Sesa Goa, IDFC, Ambuja Cements, Reliance Infrastructure, Punjab National Bank, Kotak Bank, Asian Paints and Jaiprakash Associates also posted strong gains.
Bharti Airtel ended lower by almost 2%. GAIL India, Hero Motocorp, Coal India and Jindal Steel & Power also closed on a weak note.
Apart from Bharti Airtel, other telecom majors Reliance Communications and Idea Cellular too saw some selling today, following the government approving a proposal to allow 4G licence holders to also offer voice calling services.
Hotel Leelaventure rallied sharply following the company executing an agreement with Reliance Industries to sell its IT Park building in Chennai, for a consideration of Rs 170.17 crore.
Shares of Kingfisher Airlines rose sharply following an announcement from UB Holdings that it will hike its loan limit for the airliner from Rs 300 crore to Rs 750 crore.
The market breath was strong. On BSE, 1371 stocks moved up, while 742 stocks declined. Around 850 stocks ended little changed from their previous closing levels.