Sensex up 123 pts on lower inflation, waning concerns on Greece

The stock market today bounced back 123 points, as investors returned discounting fears that Greece's financial woes would spawn a fresh crisis in Europe.

Strong opening in European markets following overnight gains on Wall Street and easing food inflation at home helped investor sentiment.

The 30-share Sensex of the Bombay Stock Exchange closed 0.71 per cent, or 123.39 points, higher at 17,503.47. Yesterday, the barometer had tanked over 310 points, the worst fall since February 5, to end at 17,380.08 level.
     
Analysts said that market sentiment was upbeat today on easing food inflation and on clearing day in the derivative segment.
 
"Markets moved up as investors were bullish on roll over of derivative contracts on clearing date today. Investors who offloaded shares yesterday amid weak sentiments, today bought back at cheaper prices, helping the market to move up," Unicon Financial CEO Gajendra Nagpal said.
     
National Stock Exchange's benchmark Nifty, which comprises 50-shares, advanced 0.74 per cent to settle at 5,254.15 points.

ICICI Bank led the gainers and surged 2.86 per cent, the most in 30-bluechip Sensex stocks, to Rs 944.90.
     
Ending its three-day downtrend, the country's most valued firm Reliance Industries rose 1.74 per cent to settle at 1,034.70.
 
Brokers said market was also bullish on the US Fed's decision to keep the benchmark interest rate near zero.
     
"Federal Reserves decision of leaving key interest rates unchanged and IMF's promise of increasing the Euro 45 billion aid package for Greece to as much as Euro 120 billion over three years lifted the sentiments on Dalal-Street," said an analyst.

Banking, realty, metal and consumer durables sectors were in demand today, while FMCG, health consumer and IT stocks saw selling pressure.

Among the Sensex constituents, 19 stocks ended with gain, whereas 11 scrips closed in red.
     
Tata Motors surged 2.61 per cent, Tata Power by 1.80 per cent, SBI by 1.73 per cent and BHEL by 1.43 per cent. HDFC rose 0.72 per cent, a day after it said its board will consider the stock-split proposal on May 3.
     
Food inflation declined by over one percentage point to a month's low of 16.61 per cent for the week ended April 17, as pressure on prices eased with the arrival of rabi crops in the market.

Among losers, HUL dropped 2.31 per cent, the most among the Sensex companies, followed by Sun Pharma that declined 2.25 per cent. TCS fell by 1.49 per cent and Grasim Industries by 1.37 per cent.
     
On global front, trend was mixed with the Europe trading in green, while Asian markets closing in the red.
     
London Stock Exchange's benchmark FTSE 100 jumped nearly one per cent, while France's Cac 40 index went up one per cent in the early trade, on good corporate earnings and assurance from IMF on bailout package for crisis-hit Greece.
     
In Asia, Hong Kong and Chinese markets closed in the red. The US bourses closed in the green overnight on the Fed's move
on benchmark rate.