Sensex ends up 350 pts

The markets ended with solid gains, the Sensex was up 354 points (provisional) at 19,476. The NSE Nifty added 112 points to 5,852.
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(Updated at 1445 hrs)

Markets are going strong this afternoon thanks to the rally across the global bourses and expectations of a normal monsoon. The Sensex is quoting at 19416, higher by 294 points or 1.6% and the Nifty is at 5833, up 93 points, largely propelled by the strength in IT space and firmness in auto and metal stocks. Not to be outdone, the midcap index is at 7224, higher by 82 points and the smallcap index is at 8871, up 108 points.

The markets had a gap-up opening on the back of the positive cues from Wall Street and an enthusing start to the proceedings across Asia. There was a momentary blip as realty and ADAG stocks spiralled downwards in a knee-jerk reaction to the denial of bail by the special court to five corporates involved in the 2G scam. But there was a re-emergence of momentum in late-noon trades as a fledging Europe compensated for the weakness in select pockets. The market sentiment has also been boosted by the assertion of the Indian Meteorological Department that the South-West monsoon will be normal, increasing expectations of robust farm output which may bring a relief from high food prices.

The upbeat results posted by HCL Tech has come as a balm to the hitherto besieged IT space, which has been reeling under selling pressure post the sub-par Infosys results. HCL Technologies has zoomed by 9.2% to Rs 519 after its consolidated revenues for the third quarter jumped by  5.57% at Rs 4077.9 crore versus Rs 3862.5 crore in the last quarter and net profit surged 16.2% to Rs 461.3 crore versus Rs 397 crore seen in the previous quarter. And the positive sentiment rubbed on to the other IT counters; TCS, which is scheduled to annnounce its results on Friday, has soared by 4% at Rs 1212 and Infosys has added 0.39% at Rs 2913.

Auto scrips are on a roll following the hopes of a normal monsoon; Mahindra & Mahindra has raced ahead by 5.5% at Rs 766 and Tata Motors is up 3.6% at Rs 1247.

The metal sector is also seeing action, with Hindalco strengthening by 2.9% at Rs 211, Jindal Steel gaining 2.9% at Rs 681 and Tata Steel adding 2.2% at Rs 624.

On the other hand, Hero Honda has weakened by 3% at Rs 1723, RCom has lost 3% at Rs 104 and L&T has lost 0.3% at Rs 1701.

The market breadth is positive; Out of 2942 stocks traded on the BSE, 1885 stocks have advanced while 961 have declined.