Sensex up nearly 225 points as buying gathers momentum

Last Updated: Thu, Nov 29, 2012 07:07 hrs

Thanks to sustained buying at several blue chip counters, the Indian stock market is up sharply this morning, with the key indices Sensex and Nifty rising to impressive levels.

The stable outlook given by Moody's for India's sovereign credit, Goldman Sach's upward revision in rating for Indian stocks to 'overweight' from 'market weight' and hopes that the Indian government will speed up reforms are contributing to the buoyant mood in the market.

While the Sensex, which has moved past the psychological 19,000 mark, is currently up 222.49 points or 1.18% at 19,064.57, slightly off the day's high of 19,076.12, the Nifty index of the National Stock Exchange is up 66.40 points or 1.14% at 5793.85.

Realty, automobile, bank and capital goods stocks are mostly up with strong gains. Several stocks from oil, FMCG, consumer durables, metal and PSU sectors are also trading notably higher. A few stocks from healthcare section are also up with impressive gains. Information technology stocks remain subdued.

Among the stocks in the Realty index, HDIL tops the list of gainers, moving up by over 5%. Indiabus Real Estate, Prestige Estates, Sobha Developers, Unitech and DLF are up 2% - 4%. Anant Raj Industries, DB Realty, Oberoi Realty and Parsvnath Developers are also trading notably higher.

Automobile stocks Bajaj Auto (up nearly 4%) and Tata Motors (4.5%) are up sharply on strong buying support. Hero Motocorp and Mahindra & Mahindra are up with modest gains, while Maruti Suzuki is trading lower by about 0.7%.

Among the stocks in the Bankex, IndusInd Bank is up 3.7%, Axis Bank, Bank of Baroda, HDFC Bank, ICICI Bank, Kotak Bank, State Bank of India and Yes Bank are trading higher by 1% - 2%, and Bank of India, Canara Bank, Federal Bank and Punjab National Bank are up with modest gains.

Karnataka Bank shares vaulted 10% on huge volumes after the bank said that it is targeting to disburse Rs 1,000 crore in agricultural sector during 2012-13. “The bank has introduced the revised guidelines of Reserve Bank of India on the Kisan Credit Card scheme, which will help large sections of farmers across the country,” Karnataka Bank said in a filing.

Andhra Bank, Central Bank of India , J&K Bank, United Bank of India and Vijaya Bank are among the other notable gainers in the banking space.

Cipla, BPCL, Jaiprakash Associates, Kotak Bank, Reliance Infrastructure, Asian Paints, Ranbaxy Laboratories, Ultratech Cement and IDFC are all up in positive territory with smart gains.

Infosys, BHEL and Power Grid Corporation are trading lower by 1% - 1.2%. Lupin, Sesa Goa and Cairn India are down marginally.

Apollo Hospitals Enterprises is down more than 9% on heavy selling at the counter. Reports that Hong Kong based brokerage CLSA is selling its stake in the company has triggered a sell-off at the counter.

United Spirits is up 2.4% on strong volumes. On the National Stock Exchange, over 1.9 million shares have been traded so far at the United Spirits counter this morning.

Geodesic Limited shares jumped more than 10% this morning after the board of directors approved the buyback of the company’s equity shares at a maximum price of Rs 75 per share.

In the currency market, the rupee rose to 55.36 against the U.S. dollar in early trade this morning, gaining 9 paise. On Tuesday, the rupee had ended at 55.45 against the greenback, recording a gain of 28 paise.

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