Bulls march on global cues; Sensex above 17000

Today's major news

Godrej Consumer Products on an acquisition spree; the stock rises 1.86%

Food inflation rises to 16.55%

United Phosphorus buys Mancozeb biz from Dupont; the stock closes 1.14% higher.

Click here for more stories

Global signals

European stocks rose to two-week high on Thursday as investors confidence in the global economy improved after strong US data and the Markit Euro zone Services Purchasing Managers' Index showed the services sector was expanding in May and the Final Services Employment Index showed its first jobs growth since June 2008. FTSE 100 was trading at 1.71% higher.

All the major Asian indices closed positive except Shanghai Composite that closed lower by 0.73%. SGX Nifty closed 89 points higher.

The US stock index futures signal strong opening on the Wall Street on Thursday. Investors awaited the monthly ADP employment report, the weekly jobless claims and the factory orders for April as well as the US ISM non-manufacturing index.

Indian indices

Bulls, which gathered strength in last hour of trading in the previous session, carried the same momentum in today’s session. The indices posted gains for the sixth time in seven days. The market surged almost 2% on the back of strong global indices. Positive US housing data for April 2010 and robust services sector data in India for May 2010 enhanced market sentiments.

Following the strong global cues, the Sensex opened 44 points higher at 17786. The indices widened its gain, with the Sensex recapturing its psychological levels of 17000 and the Nifty 5100 levels. European markets were buoyant at the opening, which shrugged off the rising inflation (food inflation rose to 16.55% for week ended May 22, 2010 from 16.23% previous week) worries back home. In afternoon session, the Sensex touched the day’s high of 17073 as strong buying was seen in banking, telecom and oil & gas stocks. The Sensex in a joyful way finished the session above 17000, at 17022, up 280 points. The Nifty also managed to settle above 5100, at 5110, 91 points higher.

Market sentiment

The market breadth was strong as advancing stocks outpaced trailing stocks twice. Of the 2,949 stocks traded on the BSE, 1,905 stocks advanced, whereas 931 stocks declined. Hundred and thirteen stocks remained unchanged.

Sectoral & stock screening

With the bulls charging ahead all along the day, it was all green on the sector indices front. BSE Bankex topped the chart with gains of 1.99% followed by the BSE TECk that rose 1.89% and the BSE Oil & Gas surged 1.71%.

Among 'A' group stocks, Union Bank of India surged the most by 8.49%, followed by Hindustan Construction Company that gained 7.59% and Tech Mahindra that jumped 6.79%. On the losers’ list, Shree Renuka Sugars lost the most, down 2.12%, followed by Jain Irrigation that slid by 2.10% and KSK Energy that fell 1.44%.

Viewing volumes

India's second largest listed cellular services provider by sales - Reliance Communications saw highest trading with over 0.82 crore shares changing hands on the BSE, followed by industrial finance company - IFCI (0.78 crore shares), Anil Dhirubhai Ambani Group firm - Reliance Natural Resources (0.65 crore shares), Birla group firm - Idea Cellular (0.47 crore shares) and wind turbine major-Suzlon Energy (0.46 crore share).