Sensex eyes 52-week high as metals shine

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Global signals

The European shares edge higher on Monday to hit the five and half week high after China allowed more flexibility in the yuan exchange rate boosting confidence in the global economy.

All the major Asian markets ended the session on a positive note on China’s yuan move. SGX Nifty closed 105 points higher.

The US stock index futures signal positive opening on the Wall Street.

Indian indices

The bulls, which had taken a breather in the previous session, picked up speed to start the week on a cheerful note. The Sensex hit the two-month high level in today’s trade. The market sentiments turned bullish after Insurance Regulatory and Development Authority (IRDA) won unit linked insurance products (ULIPs) battle, China’s yuan move, which lifted the metal stocks and also strong global cues, aided the rally on the domestic bourses. The bulls continued its stellar rally throughout the day showing no signs of tiring to end the session on a firm note. However, information technology stocks (IT) stocks under performed the Sensex as rupee appreciates to one-month high against dollar.

The Sensex and the Nifty inched towards 52-week high of 18048 and 5399 that is also a strong resistance for them. If it breaks out that level and consolidate, it may go higher than that level.

Taking lead from the buoyant Asian markets, the Sensex began the session at 17655, 84 points higher, making that level its day’s low. The Sensex soon rallied sharply expanding its gain to touch the two-month high level of 17920 on the back of tremendous buying witnessed in metal, realty and banking stocks. However, in late afternoon the Sensex pared some gains to end the session at 17877, 306 points higher while the Nifty closed above 5350 levels, 91 points higher at 5353.

Market sentiment

The market breadth was positive as advancing shares outnumbered the declining one. Of the 2,986 stocks traded on the BSE, 1,828 stocks advanced, whereas 1,020 stocks declined. Hundred and thirty eight stocks closed unchanged.

Sectoral & stock screening

It was all green on the sector indices front today. BSE Metal shined the most and topped the chart posting gains of 5.16%, followed by BSE Realty that gained by 2.66% and the BSE Bankex that surged by 2.04%.

Among ‘A’ group stocks, the metal scrips occupied the top three slots. Sesa Goa was the top pick of the day posted gains of 9.54%, followed by Sterlite Industries that surged by 8.28% and Tata Steel that rose by 6.30%. Among losers, GTL slid the most with losses of 2.49%, followed by MMTC that shed 2.35% and Corporation Bank declined by 1.89%.

Viewing volumes

Anil Dhirubhai Ambani Group (ADAG) firm - Reliance Natural Resources Ltd (RNRL) saw highest trading with over 1.45 crore shares changing hands on the BSE, India’s second largest developer - Unitech (0.61 crore shares), industrial finance company - IFCI (0.55 crore shares), iron ore mining firm - Sesa Goa (0.49 crore shares) and steel major - Sterlite Industries (0.42 crore share).