Sensex up 165 points; IT and bank stocks lead recovery

After the 400-point fall last session, the BSE benchmark Sensex today closed 165.27 points higher at 17,361.74, helped by buying support in IT and banking stocks as investors ignored weak global cues.

The BSE 30-share barometer moved in a range of 17,458.35 and 17,179.33 before closing at 17,361.74, a rise of 165.27 points or 0.96%, from its previous close.

Overall, 11 out of 13 sectoral BSE indices finished with gains in the range of 0.24% and 1.62%, with technology, realty, IT, banking, FMCG and power counters taking the lead.

Technology stocks like Infosys Tech, TCS and Bharti Airtel gained between 1.4 and 3.7%, private banks like ICICI Bank and HDFC Bank gained 1.3% and 2.2 respectively. Auto counters like Hero MotoCorp and Tata Motors gained between 1-4%. Others like RIL, ITC, HUL and Sun Pharma notched gains between 1 and 3.7%.

Only BSE Metal and BSE Consumer Durables indices ended the day with marginal losses.

Experts feel IT stocks gained due to a strong dollar that will help clock better realisations. "IT stocks showed promise in today's trade with Infosys and TCS rising up to 1.5% for the day. Rising dollar rates are expected to be good for IT companies," Inventure Growth and Securities head research Milan Bavishi said.

The NSE 50-issue Nifty also bounced back today by 49.75 points or 0.95% to end at 5,278.20.

Meanwhile, Asian stocks ended mixed today after negative Chinese data and worries over eurozone crisis. Key benchmark indices in Singapore, South Korea and Taiwan ended with small gains while from China, Hong Kong and Japan ended with marked falls.

Foreign Institutional Investors (FIIs) bought shares worth a net Rs246.56 crore yesterday as per provisional data from the stock exchanges. European markets, however, were trading slightly weak in their afternoon deals on chain of disappointing fundamental data. CAC (France), DAX (Germany), FTSE (UK) were down between 0.19% and 0.41%. However, US stocks index futures signalled better opening today.

Back home, in all 22 out of 30 Sensex-based scrips closed with gains while seven finished with losses and Tata Power settled stable.

Hero MotoCorp was the top gainer from the Sensex pack with a rise of 4.08% followed by Bharti Airtel (3.69%), Sun Pharma (2.71%), Gail India (2.39%), HDFC Bank (2.24%), BHEL (1.97%), HUL (1.82%), DLF (1.53%), Infosys (1.53%), TCS (1.41%), ICICI Bank (1.28%), ITC (1.25%), Bajaj Auto (1.16%), RIL (1.02%) and Tata Motors (1.00%).

However, Jindal Steel declined by 1.90%, Maruti Suzuki by 1.68%, ONGC by 1.26%, Coal India by 1.25%, Hindalco by 1.02% and Sterlite Ind by 0.92%.

Among the sectoral indices, the BSE-Teck rose by 1.62%, BSE-Realty by 1.61%, BSE-IT by 1.38%, Bankex by 1.27%, BSE-FMCG by 1.16% and BSE-Power by 1.00%.

The total market breadth was slightly better at 1,470 stocks closed with gains while 1,431 that finished with losses.

The total turnover, due to holiday mood on account of "Gudi Padwa" today dropped to Rs2,371.69 crore from Rs2,984.72 crore yesterday.