Markets end sharply higher; capital goods stocks rally

Markets ended the day sharply higher led by gains in frontline stocks, including those in capital goods and banking. The Nifty ended the day higher by 49 points, while the Sensex gained 162 points.

Capital goods stocks including Larsen, Thermax, Alstom, Punj Lloyd and Bharat Electricals gained. Banking stocks also saw spectacular gains with ICICI Bank, IDBI Bank, Canara Bank and Bank of India rising sharply.

Heavyweight, Reliance supported the market climbing more than one per cent in trade. However, shares of Tata Motors ended the day soft after reports that the Jaguar Land Rover (Tata Motors' subsidiary) China unit is recalling 337 cars over sub-standard fixings.

Shares of Care Ratings got listed today jumping more than 20 per cent from its offer price. Wheels India jumped sharply in trade after reports that Titan Europe will buy 14.4% stake in Wheels India via open offer at Rs 725.38/share.

Fertilizer major Rashtriya Chemicals and Fertilizers was in the limelight today after the government approved a divestment programme in the company. The shares ended the day higher by more than 3%.

IT stocks were subdued in trade today with the CNX IT index dropping. IT stocks that lost ground in trade today were Tata Consultancy Services, Infosys, Wipro and HCL.

Kingfisher Airlines ended the day flat after reports that the revival plan submitted to the aviation regulator is not backed by a clear funding proposal, according to the aviation minister.

Export stocks were up after Trade Minister Anand Sharma said that India would extend interest subsidy for some exports until March 2014.

Meanwhile, Asian markets ended the day higher on hopes that there would be a solution to the fiscal cliff crisis in the US. The Japanese Nikkei hit a nine month high on the back of a weaker Yen.

GoodReturns.in