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Stocks gain on govt reform, upbeat US data

BSE-IT, Oil & Gas lead gains on BSE

SI Reporter  |  Mumbai 

notched up gains in late morning trades on Friday supported by buying in oil marketing companies after government partially deregulated diesel prices yesterday.

Investors were also hopeful of growth recovery in Asia's third-biggest economy after economic reports in the world’s two largest economies beat estimates.

At 11:30AM, the 30-share of the Bombay Stock Exchange rose 111.18  points and traded at 20,069.03 while the 50-share gained 30.05 points at 6,070.20.

In the results calendar, HDFC Bank, ITC, Reliance Industries  are scheduled later today.

Globally, Asian stocks rose for the first time in three days, with the regional benchmark index erasing its weekly loss on global growth recovery optimism.

Hong Kong's Hang Seng rose 1% to 23,552, Taiwan's Weighted index gained1% to 7,713,  Singapore's Straits Times was up 0.34% to 3,304  while China's Shanghai Composite added 1% to 2,306 and Japan's Nikkei gained 2.3% to 10,855.

Back home, oil &gas, PSU, real-estate, capital goods, banks gained while  technology, IT,  consumer durables and healthcare indexes dropped on

Among key stocks,  Wipro fell 4.6% while dropped 0.5%, Bharti Airtel declined 1.65, Dr Reddy's and SunPharma dropped 1% ,  Hero MotoCorp fell 4% while Mahindra & Mahindra and Tata Motors were down 2% and 0.3% on

Among gainers,  ONGC and GAIL up 8% and 4%, Reliance Industries gained 1%, SBI and ICICI Bank rose 1.5% each, among autos, Maruti Suzuki and Bajaj Auto gained 3% and 1% respectively, Coal India was up 1.5% while HDFC & HDFC Bank gained nearly 1% on

Wipro, India's third-biggest software exporter, fell as much as 5 percent, with traders saying the performance of the company's core IT services segment in third quarter was not as strong as expected.

HCL Technologies, country's fourth-biggest software exporter, rose 1% from 5% gained on Thursday after reporting a better-than-expected 9% quarter-on-quarter (qoq) growth in consolidated net profit to Rs 965 crore for the second quarter ended December 31, 2012 (Q2). Revenue rose by 3% sequentially to Rs 6,274 crore during the recently concluded quarter.

Meanwhile, Bangalore-based soap to IT services major Wipro Ltd reported a net profit of Rs 1,716 crores for the third quarter of FY13 ended on December 31, 2012, registering a y-o-y growth of 18% when compared to the corresponding period last year.

The total revenues of the billionaire Azim Premji promoted company stood at Rs 11,025 crores an increase of 10% when compared to the corresponding quarter last year. The stock is down nearly 5% on concerns over growth outlook.

The other notable movers includes,  Hero MotoCorp is down 4% at Rs 1,743. India's largest motorcycle maker missed estimates for the fourth straight quarter on Thursday as net profit fell 20.4% on rising costs and falling sales that battered margins.

Oil Marketing Companies (OMCs) rallied after Government partially deregulated diesel prices today. India's three-biggest ONGC surged 8%, OMCs namely Bharat Petroleum Corporation, Hindustan Petroleum Corp and Indian Oil Corp jumped between 7-11% on BSE.

CDMA operators Reliance Communications and Tata Teleservices will have to jointly shell out around Rs 2,900 as one-time spectrum fee following the Cabinet decision on CDMA spectrum. RCom is up marginally at Rs 83 while Tata Tele was flat at Rs 12.62.

Reliance Industries rose 1% on hopes of improved refining margins by the world's biggest refiner in the third quarter after surge in GRMs by the Essar Oil.

Exide Industries has slipped over 7% to Rs 129 after reporting more than 100 bps year-on-year (yoy) decline in operating margins for the third quarter ended December 2012 (Q3) due to higher raw material cost.

The broader gained with mid-caps and small-caps  up by 0.2-0.4% on BSE.

The market breadth was positive. Out of 2,424 stocks traded, 1,240  stocks gained compared to 1,076 declined on BSE.

First Published: Fri, January 18 2013. 11:29 IST