(RTTNews) - Tuesday, the Indian market is trading firm after Infosys reported a healthy 14% growth in its net profit for the December quarter.

The market opened almost flat this morning amid mixed cues from the Asian markets after concerns about massive credit losses at Citigroup dragged bank stocks in the US markets overnight.

The market has since then recovered significantly, although it is showing considerable volatility on account of alternate bouts of buying and profit taking.

The BSE Sensex opened at 9,042 and bounced back sharply in early trade. The index is trading near the day’s high at 9,199, up 89 points or 0.98%, while the S&P CNX Nifty is trading at 2,787, up 0.52%. Second-line stocks are also receiving good support.

Infosys, Reliance Industries, Reliance Infrastructure, DLF, Sterlite Industries, ITC, Jaiprakash Associates, Ranbaxy, Larsen & Toubro, Tata Power and Reliance Communication are some of the prominent gainers.

However, Grasim Industries, Hindustan Unilever, Tata Motors, Mahindra & Mahindra, Tata Steel, Bharti Airtel, NTPC, Maruti Suzuki, ONGC, Sun Pharma and HDFC Bank are trading weak.

On the BSE, the market breadth is positive, with 854 advances compared to 638 stocks that are declining. Stocks across the sectors are trading higher. IT, realty and oil/gas stocks are leading the bounce-back.

Infosys is up nearly 5.0% on reports that the company would gain the most among the top Indian IT players from Satyam’s loss of credibility because of its reputation as a firm with high corporate governance standards as well as its US listing. Infosys has cut its earnings and revenue guidance in dollar terms, but revised upwards, earnings and revenue guidance in rupee terms for the current fiscal year.

Satyam Computers is rising 1.60% on reports that the government is ready to offer financial support to the company once it receives any such proposals from the newly constituted board.

Suzlon Energy is gaining 1.39% after Suzlon Gujarat Wind Park, a wholly- owned subsidiary of the company, signed a Memorandum of Understanding with the Government of Gujarat for developing wind power projects of up to 1,500 MW in the Kutch-Saurashtra region of Gujarat.

ONGC is down 0.74% on reports that its international arm ONGC Videsh (OVL) has paid $ 2.1 billion for the acquisition of UK-listed Imperial Energy and will invest another $500-600 million in the company’s Russian fields to raise production over the next 2-3 years.

Exide Industries is up nearly 2.0% despite reporting flat net profit growth for the December quarter. Gujarat NRE Coke is adding 1.57% after the company revealed major investment plans in Gujarat.

Dewan Housing is surging up 7.36% on reports that it is set to buy out IDBI Home Finance for close to Rs.311 crore. DLF is up 2.99% following reports that it has raised a total of Rs.1, 700 crore in debt from state-owned Punjab National Bank and Life Insurance Corp over the past month to repay short-term debt.

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