Sensex closes 181 points higher, realty, telecom gain

A benchmark index for Indian equities Friday closed 181 points higher than its previous close, with realty and telecom stocks outperforming the markets.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,667.85 points, closed at 17,833.54 points, 181.81 points or 1.03 percent up from its previous close at 17,651.73 points.

At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty was ruling at 5,352.45 points, up 1.05 percent or 55.6 points from its previous close at 5,296.85 points.

Broader markets also saw healthy buying. The BSE midcap index ended 0.9 percent higher and the BSE smallcap index up 0.38 percent.

The major Sensex mover was Bharti Airtel which climbed over 10 percent after global rating agency Credit Suisse raised its appraisal to “outperform”, citing improved environment. The scrip ended the day with a 9.7 percent gain at Rs.308.10.

Other telecom scrips like Reliance Communications and Ideal Cellular too zoomed after the agency changed its rating of the two companies to a higher level.

While Reliance Communications scrip, whose rating was raised to “neutral” rose 3.88 percent to touch an intra-day high of 195.25, Ideal Cellular soared 14.6 percent to Rs.67.65. Idea saw its rating go up to “outperform”.

The RComm scrip closed 2.82 percent up at Rs.193.25, while Idea ended the day with a 13.3 percent gain at Rs.66.85.

IT major Infosys was another big component of the Sensex’s upside movement, with the company’s stock reacting favourably ahead of its quarterly earnings announcement. The stock rose 1.63 percent at Rs.2,871.90.

The market breadth was positive, with 1,575 scrips advancing, compared to 1,323 declining, and 120 remaining unchanged.

Other major Asian markets rose Friday, after stocks rallied in the US for a third day on Thursday after the number of jobless claims dropped, indicating that the American economy’s revival was intact.

Bargain hunting and waning pessimism about a global economic recovery helped the Japanese Nikkei move 0.52 percent higher at 9,585.32 points, while the South Korean Kospi ended 1.43 percent up at 1,723.01 points.

Hong Kong’s Hang Seng closed at 20,378.66 points, up 1.64 percent, while the Chinese Shanghai Composite index ended 2.31 percent up at 2,470.92 points.

European markets too started trade in the green, making this the fourth staraight day of a rally, but later faltered around closing bell time here.

Investors took hope from the rise in US stock markets.

In Britain, the benchmark index FTSE 100 was ruling 0.16 percent higher at 5,113.44 points, while the French CAC 40 was trading 0.3 percent up at 3,548.78 points.

The German DAX was up 0.4 percent at 6,059.62 points.