Nifty regains 5400 after 30 months

Today's major news

HCL Technologies signs deal with Saudi’s Al Majdouie; the stock closes 0.97% higher

May index of industrial production at 11.5%

Sintex Industries’ Q1 net profit rises 20% yoy; the stock ends 0.22% lower



Global signals

European shares rose on Monday carrying previous week’s momentum coupled with the supportive Asian markets.

All the major Asian indices ended in the positive territory except Japan’s Nikkei index that closed with losses of 0.39%. SGX Nifty closed 27 points higher.

The US stock index futures signal weak opening at the Wall Street on Monday ahead of the earning season starting from today. The investors will keep an eye on the results of aluminum major, Alcoa, which will be announced later today.

Indian indices

The domestic markets continued its northbound journey carrying previous week’s strength.
The markets rallied for the third consecutive day on account of the supportive global cues. During the day, the Sensex hit the 18000 levels for the first time since April 2010 while Nifty hit the 5400 levels for the first time in 30 months. The domestic bourses could not sustain such high levels and pared its gains as India’s index of industrial production (IIP) reading for May came in at 11.5% as against 17.6% in the previous month, which was below market expectation.

The Sensex started the session 43 points higher tracking positive Asian markets. The index extended its gains as the session progressed. In the morning session, the Sensex crossed the 18000 levels to touch the day’s high of 18010. However, the Sensex could not hold such levels and slipped to touch the day’s low of 17875 after disappointing May 2010 IIP reading. In the afternoon session, the index regained strength as the European markets opened positive.

At finishing line, Sensex shut shop at 17937, 104 points higher. The Nifty closed at 5383, 31 points higher.

Market sentiment

The market breadth was constructive. Of the 3,013 shares traded on the BSE, 1,567 shares advanced whereas 1,320 shares declined. Hundred and twenty-six shares remained unchanged

Sectoral & stock screening

BSE Realty was the major gainer, up by 2.24%. BSE Bankex and BSE information technology (IT) rose by 1.34% and 1.26% respectively. On the other side, BSE Oil & Gas lost the most by 0.43%. The rest of the sectors were either up or down marginally.

Among 'A' group stocks, top gainers' were - Educomp Solutions gained the most by 6.20%, followed by Opto Circuits that surged by 5.92% and Jet Airways that rose by 5.78%. Top losers' were - Bharat Petroleum Corporation slid the most by 3.02%, followed by Balrampur Chini Mills that fell by 2.64% and Bajaj Holdings & Investments that shed 2.62%.

Viewing volumes

Aditya Birla group telecom firm - Idea Cellular saw highest trading with over 0.72 crore shares changing hands on the BSE, India’s second largest developer - Unitech (0.50 crore shares), industrial finance company - IFCI (0.47 crore shares), wind turbine major - Suzlon Energy (0.28 crore shares) and India’s largest telecom operator - Bharti Airtel (0.24 crore share).