Markets finished in positive terrains after losing most of the intraday gains due to profit bookings by investors and after rupee again weakened to 55.75 against the US dollar. The news of strong growth in services sector and monsoon fully covered southern state of Kerala helped markets. Capital goods, banking and power stocks led the gainers on hopes of an interest rate cut by the Reserve Bank of India.
Sensex ended at 16,020.64, up 32.24 points, or 0.20%. It touched an intraday high of 16,138.29 and a low of 15,979.77. Nifty closed at 4,863.30, up 15.15 points, or 0.31%. It touched an intraday high of 4,898.95 and a low of 4,847.70.
US markets ended the day in the positive territory after showing a lack of direction earlier in the session. After seeing substantial weakness at the start of the session, buying interest emerged after The Philadelphia Housing Sector Index surged up by 3%, bouncing well off a nearly five-month closing low. Buying interest, however, remained relatively subdued amid lingering concerns about the U.S. economic outlook following last Friday's weaker than expected jobs report, limiting the upside for the markets. The Dow Jones industrial average rose 26.42 points, or 0.22%, to 12,127.88. The S&P 500 Index gained 7.32 points, or 0.57%, to 1,285.50. The Nasdaq Composite added 18.10 points, or 0.66 %, to 2,778.11.
Asian shares edged higher on Wednesday but were capped by concerns Euro zone concerns, as Spain warned that it was being shut out of credit market. Japan's Nikkei 225 index was trading .7% higher at 8,446.75 and Hong Kong 's Hang Seng index was trading higher at 18,363.12, up 0.5%. South Korea 's Kospi index was trading 1.05% higher at 1801.45. China's Shanghai index was trading at 2322, up 0.4%.
Today Nifty and Sensex opened on a strong note following positive global and domestic triggers. Banks, FMCG, technology, capital goods and technology stocks were supportive. Sensex and the Nifty, gained over 1.5 per cent in the late morning session. Nifty opened at 4,887, up 23 points and the Sensex opened at 16,100, up 64 points.
At 11.13 a.m., t Sensex was up 257.41 points or 1.61% at 16,278.05 and Nifty was up 76.7 points or 1.58% at 4,940.
Indian rupee appreciated by 18 paise to 55.46 a dollar.
Gujarat Pipavav Ports Ltd rose over 4% to Rs 58.80 in early trade after its board of directors approved an expansion plan entailing an investment of Rs 1,097 crore.
Lanco Infratech Ltd surged over 4%to Rs 12.88 after Morgan Stanley Infrastructure Partners, a $4-billion global infrastructure fund, is in early discussions with the infrastructure company to buy its 401 km of highway projects.
Other Economic and Political News:
- HSBC India Services PMI jumps to 3-month high to 54.7 in May 2012
- Power Ministry asks Coal Ministry to change penalty clause in fuel pacts
- Government likely to announce new guidelines to revive SEZs
- Government announces steps to raise exports to US$360bn in FY2012-13
- Monsoon reaches Kerala, may progress further: IMD
- Lupin receives USFDA approval for antibiotic capsules
- Essar Oil completes optimization at its Vadinar refinery in Gujarat
- Suzlon announces launch of a new turbine with up to 29% more output