Sensex closes 277 pts up on FII inflows

Sensex spiked as investors eyed above-forecast GDP growth in China.

The BSE Sensex shot up to over 5-week high of 16,466.05 today,up 277 points on strong buying by foreign funds amid indications that the economy may grow faster in the coming months and firm markets overseas.

Buying sentiment has been gradually improving on a string of positives such as a sharp dip in inflation,rising hopes of cut in interest rates and improvement in industrial growth.

Besides,marketmen said that comments of Planning Commission Deputy Chairman Montek Singh Ahluwalia in an interview that the Union Budget should aim at raising the GDP growth rate to 8 per cent in 2012-13,from the expected 7 per cent in the current fiscal,bolstered market mood.

All the 13 sectoral indices closed with gains of up to 3.73 per cent. Capital goods,metals,realty and refinery stocks led the gains.

Besides,24 of 30 Sensex scrips made gains with top heavyweights RIL and Infosys gaining 3.78 per cent and 0.99 per cent respectively.

Maruti Suzuki,Hindalco,Lamp;T,Tata Steel,NTPC and CIL were other major gainers.

The 30-stock Sensex,which had gained 152 points in the last two sessions,moved up another 276.69 points,or 1.71 per cent to 16,466.05 8212; the level of December 8.

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The 50-scrip NSE index Nifty breached the 4,900 mark to close at 4,967.30 8212; up 93.40 points,or 1.92 per cent.

FIIs continued with the recent buying spree. They had pumped in Rs 357.68 crore yesterday as per provisional data.

8220;US markets closed overnight,hence positive openings in Asian counterparts acted as a trigger for the market. Good results from the IT major- HCL Tech improved the sentiments today on the bourses,8221; said Shanu Goel,Research Analyst at Bonanza Portfolio.

Analysts also said that the rupee8217;s rise against the US dollar to near 2-month intra-day high of 50.80 raised hopes that the strengthening local currency will reduce import costs for Indian companies and improve margins.

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Globally,markets in China,Hong Kong,Japan,Singapore,South Korea and Taiwan gained up to 4.18 per cent. In Europe,key indices 8212; CAC France,DAX Germany and FTSE UK 8212; gained up to 1.8 per cent in the afternoon.

Major gainers from the Sensex pack were Maruti Suzuki 10.48 pc,Hindalco 6.04 pc,Lamp;T 5.23 pc,Tata Steel 5 pc,NTPC 3.21 pc,Coal India 3.17 pc,Sterlite 3.06 pc,HUL 2.75 pc ,Mamp;M 2.48 pc,DLF 2.32 pc,Jindal Steel 2.25 pc,ONGC 2.05 pc,Bajaj Auto 2.02 pc,Sun Pharma 1.92 pc,Tata Motors 1.83 pc,Wipro 1.82 pc,Hero MotoCo 1.78 pc and Cipla 1.55 pc.

Among the sectoral indices,BSE-Capital Goods rose 3.73 per cent,followed Metals 8211; 3.66 pc,Realty 8211; 3.46 pc,Oil amp; Gas 8211; 2.79 pc and Auto 8211; 2.62 pc.

The total market breadth was positive as 1,907 stocks finished with gains,while 975 registered losses. The total turnover shot up to Rs 2,684.37 crore from Rs 2,092.59 crore yesterday.

The 50-share NSE Nifty index was up 1.08 percent at 4,927.15.

Stocks More on HCL Tech

Company INFO More on TCS

SHARES PREOPEN: Sensex seen opening flat,TCS earnings awaited

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Indian shares are expected to open flat on Tuesday,as investors digest mixed economic news from across the world and look to results from Tata Consultancy Services Ltd to gauge expectations for the results season.

TCS,the leader of India8217;s 76 billion IT services industry,is expected to report a 23 percent rise in quarterly profit mainly due to a fall in the rupee.

Any outlook guidance will be closely watched after rival Infosys Ltd last week cut its revenue growth outlook for the fiscal year ending in March due to the euro zone debt crisis.

State-run oil and gas firms GAIL India and Oil India could rise after both firms said they were in talks to buy energy assets from international companies.

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India8217;s headline inflation slowed in December to a two-year low as food price pressure eased dramatically,government data showed on Monday,but the central bank is expected to leave interest rates on hold next week.

Asian shares inched up on Tuesday as investors focused on economic data from China that showed GDP growth in the previous quarter hit a 2 and a half year low,but beat forecasts.

At 0300 GMT,the MSCI8217;s broadest index of Asia Pacific shares outside Japan was up 1.38 percent,while Tokyo8217;s Nikkei was up 0.6 percent.

The Nifty India stock futures in Singapore was little changed.

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The main BSE index recovered from early losses to close up 0.2 percent on Monday,rallying on the inflation data to buck the negative news of sovereign rating downgrades in Europe.

STOCKS TO WATCH

State Bank of India may rise after a TV channel reported that the leading lender has received the finance ministry8217;s approval for capital infusion of 60 billion to 80 billion rupees 1.2 billion-1.6 billion.

Tata Motors could gain after the truck and car maker said its global vehicle sales rose an annual 27 percent in December,driven by strong demand for its passenger cars and luxury Jaguar Land Rover vehicles.

ING Vysya Bank may rise after the private sector lender posted a 44 percent rise in quarterly net profit.

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Reliance Industrial Infrastructure is likely to rise after the company posted a 22.5 percent rise in December quarter net profit.

FACTORS TO WATCH

Euro extends gains vs dollar after China GDP data

Oil prices gain after Iran warning

Shares steady as China data eyed; Europe worries weigh

Wall St slips on reports of euro-zone downgrades