Sensex spurts 337 pts to 4-week high on Q2 results

Sensex on Wednesday surged 337 points as investors bought stocks available at lower levels, amid firm trend in global markets.

Updated: Oct 19, 2011, 17:54 PM IST
Mumbai: Sensex shot up 337 points to 4-week high of 17,085.34 Wednesday as all the 30 scrips in the BSE index made gains on buying at lower levels and strong second quarter earnings reported by HDFC and Hero MotoCo amid firm trend in the overseas markets.
Similarly, all the 13 sectoral indices logged in sharp to moderate gains of between 3 percent and 0.84 percent with realty, banking, refinery, capital goods, auto and metal segments at the forefront.
Analysts said good Q2 results by 2-wheeler maker Hero MotoCo announced late Tuesday -- and by the country's second- largest private lender HDFC Bank Wednesday -- improved the market sentiment.
Hero MotoCorp surged 4.13 percent after it declared highest quarterly net profit, up 19.39 percent in Q2 this fiscal vis-a-vis the year-ago period.
HDFC Bank reported 31.49 percent jump in net profit and the scrip ended 3 percent up.
Besides, buyer mood was buoyed on reports that European nations may announce steps this week to resolve the euro-zone debt crisis, although Moody's cut Spain's rating.
Sensex opened higher on Asian cues and moved up further on strong European openings to close at 17,085.34, highest since September 20. It rose 337.05 points or 2.01 percent. In last two days, it had lost 334.40 points or 1.96 percent.
Similarly, the NSE 50-issue Nifty rebounded 101.65 points or 2.02 percent to close at 5,139.15.
"The quarterly result announcements are dominating stock movements. Results of HDFC Bank and Hero Motocorp were well received by the investors," said Milan Bavishi, Head Research, Inventure Growth and Securities.

"The global bullishness stemmed from the fact that Germany and France had reached an agreement to increase the firepower of Europe's bailout fund," Bavishi said.
Key indices in Hong Kong, Japan and South Korea closed with gains while those in China, Taiwan and Singapore ended slightly weak.
However, European stocks were trading higher in the afternoon. The CAC, the DAX and the FTSE were trading nearly 1 percent higher.
Meanwhile, back home, after injecting Rs 397.50 crore on October 17 as per Sebi data, FIIs pulled out Rs 285.19 crore Tuesday.
Major gainers from the Sensex-pack were DLF 4.16 percent, L&T (3.74 percent), Jaiprakash (3.33 percent), Wipro (3.23 percent), Sun Pharma (3.09 percent), Tata Motors (3.04 percent), SBI (2.99 percent), Bharti Airtel (2.91 percent), ICICI Bank (2.88 percent), RIL (2.72 percent), Jindal Steel (2.68 percent), Sterlite Ind (2.10 percent), NTPERCENT (2 percent), ONGC (1.80 percent), Hindalco (1.75 percent), Coal India (1.58 percent), TCS (1.47 percent), ITC (1.40 percent), Tata Steel (1.39 percent) and Infosys (0.89 percent).
From the sectoral indices, BSE-Realty spurted 3 percent, Bankex (2.69 percent), Oil&Gas (2.27 percent), Capital Goods (2.02 percent), Auto (1.81 percent) and Metal (1.80 percent).
The total market breadth on the BSE turned positive asd 1,670 stocks closed in the green, while 1,136 ended in the red. The total turnover rose to Rs 2,448.33 crore from Rs 2,200.43 crore Tuesday.