Sensex gains 321 points, Nifty closes above 7600; ICICI up 5 pc

Mumbai: Stocks rose in Europe after China reported economic growth figures that were slightly stronger than markets had expected, although the reaction in Asia was more muted.

The world's second largest economy expanded at a 7.5 per cent annual pace in the second quarter, the statistics bureau said, just beating the 7.4 per cent median forecast in a Reuters poll.

The numbers, which also helped push crude oil and some industrial metals higher, confirmed the economy had stabilised after a shaky start to the year though analysts said the pick-up was largely driven by government stimulus. The pan-European FTS Euro first 300 equity index was up 0.6 per cent, buoyed by mining stocks which strengthened in anticipation of demand from China.

Market closing:The market managed to hold hefty gains supported by financials. The Sensex was up 321.07 points or 1.27 per cent at 25549.72 and the Nifty gained 97.75 points or 1.3 per cent to end at 7624.40. About 1977 shares advanced, 970 shares declined, and 99 shares were unchanged.

ICICI Bank rallied 5 per cent. Hindalco, Axis Bank, Sesa Sterlite and BHEL were other top gainers in the Sensex. Among losers were Bajaj Auto, GAIL, Cipla, Dr Reddy's and Wipro. 03:20pm Results: Bajaj Finserv's first quarter (April-June) consolidated net profit rose 15.5 per cent year-on-year to Rs 319.4 crore from Rs 279 crore and total income grew 28.6 per cent to Rs 1,629 crore from Rs 1,270 crore during the same period.

Adani Ports has received environment and coastal regulation zone approvals for Mundra SEZ. Stock surged 7 per cent.

Market Check: Huge short covering and long build up in banks and oil & gas stocks helped the Sensex rise 324.77 points or 1.29 per cent to 25553.42 and the Nifty gain 99.15 points or 1.32 per cent to 7625.80. About 1906 shares have advanced, 951 shares declined, and 105 shares are unchanged.

Private sector lender Federal Bank reported strong earnings with the first quarter (April-June) net profit surging 108 per cent to Rs 220.2 crore compared to Rs 105.7 crore in same quarter last year, aided by sharp fall in provisions and improvement in asset quality performance despite fall in other income.

Net interest income, the difference between interest earned and interest expended, grew 10.7 per cent year-on-year to Rs 564.2 crore during April-June quarter while other income (non-interest income) fell 27.5 per cent to Rs 156.54 crore from Rs 215.79 crore year-on-year.