The markets shrugged off concers over implications of a hike in the mandatory deposits the commercial banks need to keep with the apex bank
MUMBAI: The markets shrugged off concers over implications of a hike in the mandatory deposits the commercial banks need to keep with the apex bank and extended the gains to the fifth day in a row with the benchmark Sensex rising by nearly 258 points to close the day.
Marketmen said strong global cues and expectations of robust earnings by India Inc helped discount the concerns.
The 30-share Sensex on the Bombay Stock Exchange settled the day at 16,739.33, up by 258.13 points, or 1.56 per cent over its previous close.
The broader 50-share S&P CNX Nifty of the National Stock Exchange also advanced further by 78.60 points, or 1.59 per cent to close at 5,037.00 from its last close.
One marked feature of Monday's rise is the good show by small-cap and mid-cap shares which outperformed the frontline stocks.
IT shares, which hogged the limelight and scored sharp gains last week after Infosys Tech gave encouraging guidance, however, fell back as other IT major Wipro on Friday came out with conservative outlook and TCS expected to follow suit.
TCS, the country's largest software exporter, is scheduled to release its Q4 results.
Brokers said market discounted a hike in cash reserve ratio-- the mandatory deposits the banks need to keep with Reserve Bank all times-- mainly due to strong trend in Asian bourses.
The Reserve Bank on Thursday announced the increase in CRR by 0.50 per cent in two phases, effective from April 26 and May 10.
Asian indices ended up by about 0.72 per cent to 2.17 per cent while European markets traded mixed in their early trade.
Brokers said investors were bullish about the current earning season and anticipated a good show by the country's biggest corporate Reliance Industries, which is releasing its financial results.
The fact that hike in CRR has had little effect on markets is best said by bank shares which put up a good show.
Blue-chip stocks Tata Steel topped Monday's pack of gainers with a gain of 8.61 per cent, followed by Jaiprakash Associates which is up by 7.27 per cent.
Other heaveyweights Reliance Comm, SBI Bharti Air, HDFC Bank, ICICI Bank, L&T 2.49, Grasim, NTPC, Ranbaxy and ONGC posted gains in the range of 1-5 per cent.
However, IT bellwether Infosys Tech lost 1.28 per cent, Satyam Computer 2.13 per cent, Wipro 1.21 per cent and TCS 0.83 per cent.
The BSE small-cap index shot up by 221.47 points or 2.60 per cent to 8,752.83 while the mid-cap index jumped by 146.87 points or 2.15 per cent to 6,983.26.
Reflecting a rally in small and mid-cap segments, the market breadth remained strong with 2,053 gainers against 673 losers at close on the BSE.
The trading volume, however, fell to 5,883.10 crore from Rs 6,723.75 crore on previous trading day. Titagarh Wagon on the first day of its listing clocked highest turnover of Rs 367.00 crore followed by Orchid Chemicals (Rs 289.56 crore),
RIL (Rs 172.90 crore), Essar Oil (Rs 133.92 crore) and Reliance Capital (Rs 128.37 crore).
The broad-based BSE-100 index spurted by 147.27 points to 8,887.94. The BSE-200 index and the Dollex-200 were quoted higher at 2,088.30 and 871.59 respectively. The BSE-500 index firmed up by 118.54 points to 6,673.71 and the Dollex-30 ended up at 3,445.22 from 3,389.12 previously.
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