The Hindu Business Line : Sensex gains 300 on fund buying

Good guide
A fund manager with a local mutual fund said that the market had been poised for an upturn on Monday.
`More than earnings, it was the Infosys guidance that came as a positive surprise'

Mumbai , April 17

Led by higher-than-expected guidance from Infosys and good results from Gujarat Ambuja Cement and HDFC Bank, the stock market made a handsome recovery on Monday ending its two-day losing streak.

The benchmark BSE-30 Sensex gained by over 300 points (or 2.69 per cent) to 11539.68 on broad based buying by foreign and local funds.

The rally also saw all sectoral indices going up by 1.50 per cent to 2 per cent. IT indices (BSE and NSE) cut an exception, gaining about six per cent, after investors felt that leading companies, including TCS, Wipro and Satyam would follow the Infosys trail to post better-than-expected numbers.

TCS, which came out with its fourth quarter results after market hours did not let investors down, announcing a one-for-one bonus and setting the likely tone for Tuesday's trading. NSE's S&P CNX Nifty index rose by 79.65 points (or 2.38 per cent) to end at 3425.15.

After being net sellers in the last four trading sessions (to the tune of $571.90 million or Rs 2544.10 crore), foreign funds were active buyers, dealers said. "It could be a very jerky ride from now on. There will be a sharp move up or a down turn in the markets.

"But the long-term scenario is intact," said Mr Gaurang Shah of Geojit Financial Services.

A fund manager with a local mutual fund said that the market had been poised for an upturn on Monday on the back of last week's healthy numbers from Infosys.

"More than earnings, I think it was the guidance that came as a (positive) surprise to analysts and investors," he said.

Satyam Computers (up Rs 55.80 at Rs 827.80), TCS (up 106.75 to Rs 1903.60), and Infosys (up 209.50 to Rs 3230.30) in the IT sector, Tata Steel (up Rs 29.30 to Rs 594.75) from the steel sector and Gujarat Ambuja Cement (up Rs 9 to Rs 117.75), ACC (up Rs 41.15 to Rs 938.10) and Grasim (up Rs 151.90 at Rs 2243.20) among cement companies, were the key movers on Monday.

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