After struggling for support for well over four hours, the market has rallied sharply in mid afternoon trade thanks to some strong buying in information technology, capital goods, pharma and oil stocks.
A host of stocks from realty, banking and automobile sectors too have moved up sharply now. Power and metal stocks are edging higher after staying flat for a considerable length of time. FMCG stocks are subdued around their previous closing levels. Besides several large cap stocks, a number of stocks from midcap and smallcap sections too have posted impressive gains.
The Sensex, which spurted to 17,209.66 a little while ago, is now up 105 points or 0.62% at 17,170. The Nifty is up 33.35 points or 0.65% at 5158, slightly off the day's high of 5169.25.
According to the data released by the government around noon today, India's food price index rose 9.55% and the fuel price index climbed 12.55% in the year to August 27. In the previous week, annual food and fuel inflation stood at 10.05% and 12.55% respectively. The primary articles index was up 13.34%, compared with an annual rise of 12.93% a week earlier.
Reliance Industries is trading firm with a sharp gain of 1.6% at Rs 844.50. The stock is up despite the CAG report tabled today in the parliament stating that the company violated production sharing pact on KG-D6.
The Comptroller and Auditor General's final audit report on Reliance Industries Limited's offshore KG-D6 gas fields expenditure says the company violated the production sharing pact but the DGH and Petroleum Ministry are equally to blame being ill-equipped to oversee the production sharing contract. The report questioned why Reliance was allowed to enter the second and third exploration phases of the blocks without giving up 25% of the contract area in each, by treating the entire area as a discovery area.
It faulted the Oil Ministry and its technical arm, the Directorate General of Hydrocarbons, for allowing Reliance to retain the entire 7,645 sq km KG-DWN-98/3 (KG-D6) block in the Bay of Bengal after the giant Dhirubhai-1 and 3 gas finds were made in 2001.
Among other gainers in the Sensex, Sterlite Industries is up by a little over 2.5%. Tata Motors has notched up a gain of 2.3%. Larsen & Toubro, Cipla and ICICI Bank are up 1.7% - 2%. Mahindra & Mahindra, DLF, Hindalco, Sun Pharmaceuticals, Maruti Suzuki and State Bank of India are also trading notably higher.
SKS Microfinance has hit the 5% upper circuit at Rs 253.05. Ranbaxy Laboratories has gained a little over 4.5%. Thermax, Chambal Fertilizers & Chemicals, Patni Computer Systems, Uco Bank, Educomp Solutions, REC, Voltas, Central Bank of India , Lanco Infratech, National Fertilizers and Vijaya Bank have also risen sharply.