Indian markets ended at their session highs helped by a positive trend across global markets on hopes that world central banks would take appropriate steps to revive their economies.BSE Sensex comfortably crossed the 17,800 mark and the NSE Nifty close above 5,400. However most of the gains were spurted across the street, in the last hour of trade, with the Sensex ending at 17,885, up 1.1% and the Nifty at 5,421 up 1%.
Much of the gains came to the bourses thanks to the upmove of the IT major, Infosys, which surged over 2%, spurted optimism across entire space. Finding no basis to support any of the charges, US court in Alabama dismissed the harassment charges filed against Indian IT major Infosys, by one of its American employees, Jack Palmer.
Meanwhile, spurt of India’s largest car maker, Maruti Suzuki, by over 0.50% on reopening its long shut Manesar plant, also cheered investors.
Power stocks edged up on lower buying after previous session’s drubbing, prominent gainers were Tata Powers, Thermax and Reliance Power. Power stocks, in the previous session, came under pressure on being named in the CAG report.
Meanwhile, rate sensitive, including banking, Realty and Auto counters, also ended cheerful. However, on the flip side, defensive Health Care space emerged as the only spoil-sport.
Leading the list of gainers on the Sensex and the Nifty were Sterlite Inds, DLF, Sesa Goa, NTPC, Ambuja Cements, IDFC, ACC, Tata Motors, GAIL, HDFC, Tata Power, Infosys, HUL and M&M.
Bharti Airtel, Cairn India, PNB and Hindalco Inds were the top losers on both indices.
Retail stocks Pantaloon Retail, Shoppers Stop, Provogue and Trent moved up on reports that the government may allow 51% FDI in multi-brand retail in September while giving states the choice to implement the move.
Reliance Power gained after the company rebutted the Comptroller and Auditor General’s report on coal allocation, which said the company had got undue benefits due to diversification of excess coal from the Sasan coal project to other projects.
Sesa Goa climbed after the company said it successfully commissioned its third blast furnace of 450 cubic meters capacity with the hot metal production commencing from Aug 17, 2012.
India’s CPI inflation showed a moderation to 9.86% on year in July from 9.93% in June. The moderation was mainly due to positive base effects on fuel inflation created by the hike in administered prices a year ago and a moderation in the miscellaneous category because of a decline in the cost of transportation services.
Another development that helped sentiment was that, over the weekend, Finance Minister P Chidambaram asked banks to cut interest rates and keep EMIs at affordable levels to encourage sale of consumer durables that will restart the engine of manufacturing.