Markets end higher on PSU, auto stocks

Markets opened in the green this morning on positive cues from Asian peers. The Sensex opened at 16,872 and surged as the government announced a robust growth in GDP numbers. The country's GDP grew at 7.4%, better-than the earlier predicted 7.2%.

However, markets slipped as investors took to profit booking. Asian markets like Shanghai also dropped in red. The Sensex slipped to a low of 16,807. Volatility ruled the roost for most part of the day as markets once again gained strength and jumped to a high of 16,971 - up 164 points from the day's low.

The Sensex finally ended  at 16,944 - up 81 points. The Nifty settled at 5,086 - up 20 points.

The Indian economy grew by 8.4% in the last quarter of 2009-10, pushing up the overall growth to a better-than expected 7.4%. Manufacturing sector saw a growth of 16.3% in Q4FY10.

Asian markets ended in green but the Shanghai Composite tumbled 2.4% to 2,592. The Straits Times, Seoul Composite and Taiwan Weighted, however, added 1-2% each.

The BSE mid-cap and small-cap indices performed better than the broader index. The mid-cap index jumped 1% to 6,835. Small-cap index was up marginally at 8,547.

BSE PSU index surged 2.7% to 9,134. Auto index was up 1.8% at 7,700 ahead of the May sales figures, due later this week.

Metal stocks declined on a drop in commodity prices. Realty index dropped from the day's high to close at 3,098 - down 0.8% from the previous close.

Mahindra & Mahindra surged 5% to Rs 572. The company's net rose 36% to Rs 570.26 crore in the quarter ending March 2010. Among other auto stock, Hero Honda added 1.3% to Rs 1,938 while Maruti Suzuki was up 1% at Rs 1236.

From the oil counter, ONGC jumped 3.2% to Rs 1,167 on a 71% rise in net profit. Market heavyweight, reliance, added 1% to Rs 1,045.

BHEL and SBI gained 1.5% each at Rs 2,356 and Rs 2,268, respectively.

Reliance Infrastructure, Tata Steel and Tata Motors went up around 1% each.

However, Sterlite was weak and dropped 2.7% to Rs 663. Reliance Communications slipped 1.7% to Rs 145.

Realty stocks, Jaiprakash Associates and DLF shed 1.5% each to Rs 125 and Rs 276, respectively. ACC was down 1.2% at Rs 817.

IT stocks were in red. TCS and Infosys declined 1% each to Rs 742 and Rs 2657, respectively.