Market update: Sensex rallies 229 points on Asian recovery

Frontline Indian indexes started the day on a very positive note, helped by the firm trend across other Asian markets. There were widespread fears that yesterday's sharp fall in mainland Chinese indexes would lead to a global sell-off. But, US indexes were mostly unchanged yesterday on the back of strong corporate results. Better than expected economic growth in China during the first quarter has reinforced the growth expectations for the region during the current year, though interest rates are expected to inch up.

Sensex opened at 13685 and rallied to a high of 13854. The index is trading higher by 229 points at 13849 at 11.10 AM IST.

Nifty opened at 4000 and saw a high of 4067. The index is now trading higher by 68 points at 4066.

Technology stocks are leading the rally today. Satyam Computer, which had faced some selling pressure in recent sessions, is the best performer with gains of over 5 per cent. HCL Tech has rallied more than 2.5 per cent while Wipro is trading nearly 2 per cent higher.

Among telecom stocks, Reliance Communications has added over 2 per cent while Bharti is trading nearly 2 per cent higher.

HDFC has rallied over 3 per cent in morning trading, after declining in recent sessions.

Tata Motors has also recovered and has added nearly 2.5 per cent.

Sterlite Industries is continuing it's up trend and has added nearly 2 per cent.

Among other major gainers, BPCL has added nearly 2.5 per cent and BHEL is trading more than 2 per cent higher.

There are only three losers among Nifty stocks. Dabur has corrected 0.5 per cent after gaining during the previous two sessions while Hero Honda and Glaxo are trading with modest losses.

Mid-caps and small caps are also continuing the rally, but gains are modestly lower than large caps. The NSE mid-cap index is now trading with gains of over 1.2 per cent. BSE mid-cap index has added over 1.3 per cent and the BSE small-cap index is trading 1.45 per cent higher.

Numeric Power Systems is locked in 10 per cent upper circuit.

Among the mid-cap pharma stocks, Ind-Swift Limited has added 7 per cent while Kopran has gained over 6.5 per cent.

Subex Azure, ITI, Spentex, STI India, SPIC, BIL and Cinevistas are the major gainers among mid-caps and small caps.

JMT Auto, GTN Industries, Steel Strips Wheels, Sterling Biotech, Shivam Auto and Shrenuj are the other major losers among mid-caps and small-caps.

Thomas White Global Research, part of the Thomas White International Group, publishes capital market research for global institutions and investment banks, and is headed by Thomas White, a former managing director of Morgan Stanley Asset Management.

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