Strong European markets and value buying takes market up

A fall during the last 30 minutes was not enough from preventing the market from posting a good rally. The BSE Sensex closed the day at 18,531, 195 points higher. The index touched a high of 18,724 but closed lower due to profit booking brought the market down by almost 200 points from the top. NSE Nifty closed the day at 5,544 up by 58 points.

[caption id=“attachment_9572” align=“alignleft” width=“380” caption=“The BSE Sensex closed the day at 18,531, 195 points higher.Dan Kitwood/Getty Images”] [/caption]

Apart from Reliance Communication and HDFC all other index stocks closed higher than the previous day. Jai Prakash Associate was the leader among index stocks which closed 3.12% higher at Rs 87.55, ITC followed with Rs 189.50 up by 3.10%.

Among the sectors FMCG was by far the leader with both ITC and Hindustan Unilever contributing in the rise. The sector index closed higher by 2.35% followed by metals which closed higher by 1.48%. All the sector indices closed positive.

Market breadth remain positive throughout the day and closed with 1582 stocks advancing and 1187 stocks declining, 148 stocks remained unchanged.

During the day Dr. Reddy’s Laboratories posted its results which saw consolidated revenues increasing from Rs 7027.7 crore to Rs 7469.3 crore for the year ending March 31, 2011, a growth of 6%. Net profit after adjustment for goodwill and other restructuring costs was at Rs 1244.3 crore compared to Rs 205.3 crore in the previous year. Pre-adjustments net profit increased to Rs 1076 crore from Rs 921.4 crore in the previous year.

SKS Microfinance hit the upper circuit from the word go and closed the day at Rs 370.