The Indian markets rallied on Monday, buoyed by positive Asian cues on optimism that European leaders will be able to contain the region’s debt crisis. Ahead of a second summit on Wednesday, European Union leaders have neared an agreement on bank recapitalization and leveraging their regional rescue fund, reports suggest.
Across Asia, Hong Kong’s Hang Seng index is pacing gains with a 4 percent rally, while the benchmark indexes in South Korea, Taiwan and Australia are rising around 3 percent each.
Closer home, the benchmark 30-share Sensex is currently trading near the day’s high at 17,091, up 305 points or 1.82 percent from its previous close, while the broader Nifty index is rallying 1.7 percent.
Second-line stocks are posting relatively modest gains, with the BSE mid-cap and small-cap indexes rising around a percent each. The market breadth is extremely positive, with about 3 shares gaining for every share that declined on the BSE.
Tata Steel, HDFC, Hindustan Unilever, Hindalco, ICICI Bank, Bajaj Auto, Maruti Suzuki, Sun Pharma, Jaiprakash Associates, Wipro, ONGC, DLF, Sterlite, TCS and Tata Motors are the top gainers in the Sensex pack, with gains 2-5 percent.
ITC is rising 1.5 percent and Sterlite Industries is climbing 3.7 percent ahead of their quarterly results today. ONGC is rallying 2.8 percent amid reports that it will get a windfall of over 1,300 crore from the domestically produced natural gas due to the weakening rupee.
Axis Bank is climbing 3.3 percent on reporting a better-than-expected 25 percent rise in quarterly net profit. Suzlon Energy is moving up 3.3 percent after the wind turbine manufacturer pared its second-quarter loss to Rs 19.4 crore from Rs 89 crore in the year-ago period on a standalone basis. Federal Bank is gaining 1.4 percent on reporting a 36 percent rise in quarterly net profit.
JSW Steel is up 2.2 percent on the price hike buzz. Ranbaxy Laboratories is up 2.3 percent on reports that it is in race to acquire Nokia’s factory in Romania. Pennar Industries is climbing 4.1 percent on bagging an order worth Rs 31.70 crore from Larsen & Toubro.
3i Infotech is adding 0.6 percent after the company decided to raise long- term funds by way of issuance of shares through a rights issue/public issue or such other options.
Vaswani Industries is trading at Rs.23.85 on its debut, down about 51 percent versus its initial public offering price of Rs.49 a share. Ingersoll-Rand (India) is declining a percent and Mangalore Refinery and Petrochemicals is losing 2.4 percent on posting disappointing quarterly results.
Indo Thai Securities Ltd 