Will the recovery continue?
Bulls today blast past the 13000 levels as Sensex recorded its biggest single day gain since 15th June, 2006 led by gains in the Banking, Capital Good, Metal and Telecom stocks. Markets reversed its yesterday’s loss as strong Asian Markets and all round buying in scrip’s across the sectors lifted the benchmark Sensex to close at day’s high. The bulls also cheered Prime Minister Manmohan Singh's comments after he said that the country's economy may expand more than 9% in the current financial year.
All the sectoral indices ended in green with BSE Bank, Metal and Capital Good index ended over 4.5% each. The Mid-Cap and small cap stocks also participated in the rally. SAIL, IPCL, HLL and Gujarat Ambuja were the major gainers among the 50-srip’s of NSE Nifty. Finally, the 30-share benchmark Sensex rallied 520 points to close at 13099. NSE Nifty surged 150 points to close at 3777.
Majority of Asian markets closed in positive territory boosting the sentiments across the Street. Japan's Nikkei 225 Stock Average was up 325 points at 17090 after Yen weakened. While the Hang Seng in Hong Kong advanced 256 points to 19,175. Positive start by the Major European Indices also lifted the spirits of the bulls.
Indus Fila had a disappointing debut on the bourses today. The stock opened at Rs158.90 on NSE as against the offer price of Rs170 per share. The scrip dropped by over 20% to Rs135 touching an intra-day high of Rs158 and low of Rs115.60 and recorded volumes of over 1,00,00,000 shares on NSE. The company entered the capital market with an IPO of 48,43,789 equity shares of Rs10 each. The company barely managed to get the issue fully subscribed. The IPO was subscribed just 1.43 times.
IPCL rallied by over 12% to Rs260 after Board of Directors of RIL announced that they would consider merger of the company with itself on 10th March. The scrip touched an intra-day high of Rs272 and a low of Rs238 and has recorded volumes of over 76,00,000 shares on NSE.
Wockhardt Pharma gained 1.9% to Rs377 after the company announced that it would pay Rs5 per share as mid-year dividend. The scrip touched an intra-day high of Rs379 and a low of Rs366 and has recorded volumes of over 6,00,000 shares on NSE.
Auto stocks also gained momentum led by sustained buying. Tata Motors advanced 3.8% to Rs766, Bajaj Auto rose over 2.5% to Rs2510, Maruti was up by 2.3% to Rs792 and M&M added 0.7% to Rs765.
Technology stocks once again hogged the limelight after falling sharply in the previous trading session. Heavy weight Satyam Computer surged 3.5% to Rs445, Wipro advanced 3.3% to Rs572 and Infosys added 2.4% to Rs2135. Polaris, Mphasis BFL and Moser Baer were the major gainers among the Mid-Cap stocks.
Cement stocks today attracted buying interest after dropping sharply in previous trading sessions. Gujarat Ambuja surged by over 8% to Rs112, Grasim spurred by over 6% to Rs2230, ACC gained nearly by 3% to Rs833 and India Cement rallied over 10% to Rs167.
Oil & Gas exploration stocks also recorded smart gains, ONGC advanced 1.9% to Rs779 and Reliance Industries gained 3.6% to Rs1335.