After a sharp intraday rally, key benchmark indices trimmed gains in mid-afternoon trade. Bank shares pared gains and so did index heavyweight and IT major Infosys. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 373.64 points or 1.48% at 25,691.51. The 50-unit CNX Nifty was up 116.05 points or 1.51% at 7,804.30. The Nifty hit one-week high when the index jumped 157.80 points at the day's high of 7,846.05 in afternoon trade. The Sensex hit its highest level in almost a week when it jumped 502.69 points at the day's high of 25,820.56 in afternoon trade. A rally in global markets aided the upmove on the domestic bourses.
Telecom stocks jumped on reports that the Union Cabinet has approved spectrum trading guidelines, which will allow telecom companies to buy and sell radio waves from each other.
The broad market depicted strength. On BSE, there were more than two gainers against every loser. 1,883 shares rose and 661 shares fell. A total of 100 shares were unchanged. The BSE Small-Cap and Mid-Cap indices, both, outperformed the Sensex. The BSE Mid-Cap index was up 1.93%. The BSE Small-Cap index was up 1.64%.
In overseas markets, Asian and European stocks surged after China said it would allocate additional funds to finance infrastructure projects, implement tax cuts for small businesses and accelerate the use of the public-private-partnership model to stimulate economic growth. In Japan, the Nikkei 225 Average rose a staggering 7.71% in a single trading session after reported comments from Prime Minister Shinzo Abe that the government plans to reduce the corporate tax rate by a cumulative 3.3 percentage points over two years. Trading in US index futures indicated that the Dow could jump 189 points at the opening bell.
Shares of index heavyweights and IT major Infosys were up 1.86% at Rs 1,079. The stock hit high of Rs 1,099 and low of Rs 1,072.50 so far during the day.
Pharma stocks gained. Cipla (up 1.54%), Lupin (up 1.18%), Wockhardt (up 3.62%), Cadila Healthcare (up 1.15%), Glenmark Pharmaceuticals (up 2.18%) and Strides Arcolab (up 0.58%) gained. Sun Pharmaceutical Industries (down 0.44%) and Dr Reddy's Laboratories (down 0.2%) declined.
Telecom stocks jumped on reports that the Union Cabinet has approved spectrum trading guidelines, which will allow telecom companies to buy and sell radio waves from each other. Reliance Communications (up 11.93%), Idea Cellular (up 4.65%), Bharti Airtel (up 3.63%) and Tata Teleservices (Maharashtra) (up 6.89%) surged. The spectrum trading will allow telecom companies to trade unused spectrum with other operators, without waiting for the next round of spectrum auction, report added.
Vedanta (up 7.33%), Hindalco Industries (up 6.57%) and Tata Motors (up 5.03%) were major gainers from the Sensex pack.
GAIL (India) (down 0.19%) and Wipro (down 0.01%) declined from the Sensex pack.
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