Market extends gains

The market extended gains in afternoon trade as IT firms galloped after Finance Minister extended tax exemption for firms in the sector by a year. Market had surged earlier after Reserve Bank of India (RBI) kept interest rates unchanged at its annual monetary policy review announced today afternoon. Rate sensitive banking, auto and realty stocks surged. Metal stocks rose. The market breadth was strong.

The central bank raised the cash reserve ratio (CRR) by 25 basis points and the stance of its monetary policy was hawkish.




The market had witnessed a bout of volatility earlier in the day ahead of monetary policy announcement. Asian markets which opened before Indian market were mixed. European markets which opened after Indian markets were mixed.

At 13:25 IST, the 30-share BSE Sensex was up 368.52 points or 2.17% at 17,390.73. Sensex hit a high of 17,424.35 in afternoon trade. At the day’s high, Sensex rose 408.39 points. Sensex hit a low of 17011.60 in mid-morning trade. At day's low Sensex fell 4.36 points.

The broader based S&P CNX Nifty was up 95.25 points or 1.87% at 5,184.90.

The market breadth was strong on BSE with 1549 shares advancing as compared to 983 that declined. 71 remained unchanged.

The BSE Mid-Cap index rose 1.05% to 7141.45 and BSE Small-Cap index rose 0.87% to 8,785.46.




IT stocks surged. Satyam Computer Services (up 6.115 to Rs 470), Infosys (up 4.81% to Rs 1,745), Wipro (up 3.64% to Rs 474.35) and Tata Consultancy Services (up 2.49% to Rs 905.10),

Realty stocks edged higher. Indiabulls Real Estate (up 1.66% to Rs 549.80), DLF (up 6.5% to Rs 712.50) and Unitech (down 3.75% to Rs 304.55), rose.

Metal stocks rose. Tata Steel (up 3.69% to Rs 806.40), National Alluminium Company (up 3.99% to Rs 457.05), Hindalco Industries (up 3.01% to Rs 191.20), Steel Authority of India (up 1.22% to Rs 177.90), Sterlite Industries (up 2.77% to Rs 881.70) edged higher.




Banking stocks surged after the RBI's policy announcement. Punjab National Bank (up 4.25% to Rs 577), Federal Bank (up 3.81% to Rs 250.50), Bank of Baroda (up 3.45% to Rs 317.65), State Bank of India (up 2.91% to Rs 1,787.20), HDFC Bank (up 1.12% to Rs 1,534.95) and ICICI Bank (up 2.34% to Rs 915.85) edged higher.

Auto Stocks edged higher. Mahindra & Mahindra (up 1.22% to Rs 643), Tata Motors (up 1.8% to Rs 645) Maruti Suzuki India (up 1.06% to Rs 730), Hero Honda Motors (up 3.65% to Rs 848.05), rose.

HDFC (up 5.19% to Rs 2861), Larsen & Toubro (up 2.83% to Rs 3029) Jaiprakash Associates (up 3.19% to Rs 259.10), Ranbaxy Laboratories (up 2.04% to Rs 488), Reliance Industries (up 1.97% to Rs 2,643.15) edged higher from Sensex pack.




Hindustan Unilever rose 1.46% to Rs 250.80. Net profit of Hindustan Unilever declined 3.04% to Rs 380.95 crore on 19.14% rise in sales to Rs 3793.94 crore in Q1 March 2008 Q1 March 2007. The board of the company has approved the change in the financial year to April-March.

Reliance Communications declined 0.31% to Rs 583 while Bharti Airtel fell 2.25% to Rs 906.50. Reliance Communications said on Monday, 28 April 2008, it would offer unlimited national long distance calls within its network for a fixed rental with immediate effect. Earlier yesterday, sector leader Bharti Airtel slashed long distance and roaming tariffs by 43% effective 30 April 2008.

Sita Shree Food Products rose 3.42% to Rs 62.20. It hit a all-time high of Rs 62.70 today.