Bulls back with a bang

Today's major news

Mahindra & Mahindra gears up on Reva acquisition; the stock rises 0.64%

Power Grid Corporation FY10 net profit rises 21%; the stock surges 1.98%

Bharat Heavy Electricals Q4 net profit up 41.7%; the stock closes 0.36% lower

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Global signals

Tracking gains from Asian markets, European shares rebounded on Wednesday from nine-month lows a day earlier, with investors returning to the market to buy beaten-down stocks. As of writing the report, FTSE 100 was trading 1.66% higher.

All the major Asian indices closed in the positive territory as Jakarta Composite closed higher by 7.27%. SGX Nifty closed 96 points higher.

The US stock index futures signal higher opening on the Wall Street as world equities rebound. Investors await monthly data on durable goods orders and new home sales.

Indian indices

What a stupendous comeback! Bulls that were trounced badly yesterday were back with vengeance today. On the springboard of strong Asian cues coupled with bargain hunting in index heavyweights, information technology (IT), realty and metal stocks, the bulls drubbed the bears.

The domestic bourses bounce back from 3-1/2 month lows to recover previous session's losses, tracking strong global cues. The market remained volatile as traders rolled over positions in the derivatives segment from May 2010 series to June 2010 series ahead of the expiry of the near-month May 2010 contracts tomorrow (Thursday, 27 May 2010).

The Sensex that opened 47 points higher at 16070 (the day's low) extended its gains as the session progressed tracking firm Asian indices. In afternoon session, owing to strong opening in European markets and bargain hunting in index heavyweights like ICICI Bank, Tata Consultancy Services (TCS) and Reliance Industries along with IT, metal and realty stocks supported the Sensex further to touch the day's high of 16410. At closing bell, the Sensex closed at 16388, 365 points higher. The Nifty closed at 4917, 111 points higher.

Market sentiment

The market breadth was positive as advancing stocks outnumbered declining stocks almost twice. Of the 2,885 stocks traded on the BSE, 1,886 stocks gained, whereas 901 stocks declined. Ninety eight stocks closed unchanged.

Sectoral & stock screening

With the bulls charging ahead all through the day, it was all green on sector indices front. The BSE IT led the pack of gainers, with gains of 3.48%, followed by the BSE Realty that surged by 3.01% and the BSE Metal that gained 2.98%.

On 'A' group stocks' front: Gainers were - Gujarat Mineral Development Corporation shot up 8.96%, followed by Hindalco Industries that jumped 7.30%, and Industrial Development Financial Corporation (IDFC) that rose 6.84%. Losers' were - Godrej Consumer Products that slid 4.27% followed by Indian Hotels that fell 2.95% on weak FY10 earnings and Container Corporation that declined 2.91% .

Viewing volumes

Iron and steel maker - Sesa Goa saw highest trading with over 0.65 crore shares changing hands on the BSE, followed by Anil Dhirubhai Ambani Group firm - Reliance Natural Resources (0.53 crore shares), India's largest developer - Unitech (0.52 crore shares), India's leading steel maker - Tata Steel (0.32 crore shares) and industrial finance company - IFCI (0.29 crore shares).