Sensex Closes above 16k at 16042.18 up 106.57

Sensex Closes above 16k at 16042.18 up 106.57

   India's benchmark stock index rose, reversing losses, as concern eased that deficits in Europe may cause a global economic recovery to falter. Infosys Techologies led gains in software exporters.

Infosys, India's second-largest, climbed 2.8%. Tata Consultancy Services the biggest, advanced 1.3%. India's software service companies get a third of their sales in Europe. Grasim Industries, a maker of viscose staple fibre that’s used to make tires and textiles, soared 5.2 percent.

"Investors are thinking the European concerns have been overplayed and things are looking a little more stable now," said Kishor Ostwal, managing director of CNI Research (India), a publicly traded equities research provider in Mumbai. “They are also betting on the India growth story."

The Bombay Stock Exchange’s Sensitive Index, or Sensex, rose 106.57, or 0.7 percent, to 16,042.18, according to preliminary closing prices, reversing an earlier drop of as much as 0.5 percent. Today's advance trims losses from a Jan. 6 peak to 9.4 percent, retreating from the 10 percent slide that defined a correction.

Of the sectoral indices, the BSE IPO index logged smart gains of jumped 1.2% to 1,953, led by Infinite Computer Solutions (5.2%) and JSW Energy (2.6%).

The IT index gained 2.5% at 4,973. The PSU, healthcare and power indices also moved up 1% each.

However, the BSE realty index dropped 1.2% to 3,290.

Cement stocks strengthened. Grasim rallied 5% to Rs 2,682. ACC gained 3.2% to Rs 869.

Infosys added 3% to Rs 2,471. Wipro moved up 2.5% to Rs 652. TCS was up 1.5% at Rs 734.

Sun Pharma, Reliance Infrastructure, Bharti Airtel, Hero Honda, Larsen & Toubro and Jaiprakash Associates also ended in the green.

However, DLF, which was weak since morning ended down 1.5% at Rs 307. Hindalco slipped 1.4% to Rs 134.

Auto stocks - Mahindra & Mahindra and Maruti Suzuki slipped 1% each to Rs 991 and Rs 1,354, respectively. Hindustan Unilever dropped 1% to Rs 233.

The BSE market breadth was bullish. Out of 2,881 stocks traded, 1,500 advanced while 1,302 declined.

Tata Steel topped the value chart with a turnover of Rs 131.99 crore, followed by Hindustan Copper (Rs 95.45 crore), NMDC (Rs 88.37 crore), Hindalco (Rs 86.32 crore) and HDIL (Rs 79.36 crore).

The volume chart was led by Jubilant Foodworks with trades of over 14 million, followed by Unitech (7.61 million), Shree Ashtavinayak (6.70 million), Hindalco (6.36 million) and Lanco Infratech (5.64 million).