The BSE benchmark Sensex today surged by nearly 172 points in early trade on buying by funds and retail investors,driven by encouraging quarterly earnings by corporates and firming trend on the other Asian bourses.
The 30-share BSE index,which had gained over 437 points in the previous two sessions,rose by another 171.72 points,or 0.99 per cent,to 17,472.30,with all sectoral indices gaining up to 1.41 per cent.
The wide-based National Stock Exchange Nifty Index moved up by 44.75 points,or 0.85 per cent to 5,280.45 points.
Brokers said continued capital inflows by foreign funds following an improvement in the sentiments on better-than- expected third quarter earnings by some corporates and strong sales in January by auto makers,supported the rally.
Also,firming trend on the other Asian bourses following overnight gains in the US stocks also buoyed the sentiments here,they said.
In the Asian region,Hong Kong’s Hang Seng Index rose by 1.35 per cent and Japan’s Nikkei Index by 0.87 per cent in morning trade today.
The US Dow Jones Industrial Average ended 0.66 per cent higher yesterday.
Sensex seen higher,telecoms under pressure
Sensex is expected to climb on Thursday after strong manufacturing data from China to Germany bolstered risk appetite across Asian markets.
Telecom companies,however,could be subdued ahead of a verdict by India’s top court on a petition seeking cancellation of several licences given out to companies in a 2008 grant process,which later snowballed into a massive scandal. The judgment is due on Thursday.
The main stock index,which rallied 11.3 percent in January,should maintain the positive momentum though profit-taking is around the corner,said S.P. Tulsian,an independent market analyst.
Asian shares and the euro gained as global manufacturing data soothed fears about global economies deteriorating on the back of the ongoing euro zone debt crisis.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.2 percent by 0248 GMT,while Japan’s Nikkei average was trading 0.8 percent higher.
The Nifty India stock futures in Singapore were up 0.5 percent,indicating a firm start in the local market.
On Wednesday,India’s benchmark share index rose 0.62 percent to 17,300.58,its highest close in 12 weeks.
STOCKS TO WATCH
* State-run banks such as State Bank of India,Bank of India,Union of Bank of India and Punjab National Bank may fall after the deputy governor of the Reserve Bank of India said it was not considering any special dispensation to provisioning norms for banks’ bad loans.
* Welspun Corp is expected to open lower after the steel pipes maker reported a net loss in the December quarter.
* Finolex Cables Ltd is likely to drop after the electrical cables maker said its December quarter net profit fell nearly 48 percent.
* Astec Lifesciences Ltd may rise after it entered into exclusive long-term contract with a multinational company to manufacture and supply a fungicide.