Nifty tad below 5400

Today's major news

TVS Motor declares bonus issue; the stock closes 5.76% up

Nihar Info Global zooms on winning order; the stock ends 19.69% higher

LS Industries surges on sub-division nod; the stock closes 4.99% higher



Global signals

The European stocks rose on Wednesday in a broad rally, climbing for the first time in a week, with investors scooping up recently battered banking shares on hopes the sector's stress test results will be reassuring.

All the major Asian indices ended the session on a higher note, except Nikkei and Strait Times that closed down 0.23% and 0.76% respectively. SGX Nifty closed 46 points higher.

The US stock index futures point to a higher opening on the Wall Street, boosted by upbeat earnings from technology firm Apple. The markets are expected to focus on Federal Reserve Chairman Ben Bernanke's testimony to Congress for fresh indications on the health of world's biggest economy, and policy signals from the central bank.

Indian indices

Bulls made a smart comeback after losing in the previous two sessions. The supportive global cues and strong corporate earnings boosted the market sentiments. The key benchmark indices — the Sensex and the Nifty — crossed their psychological levels of 18000 and 5400 respectively. However, the indices failed to sustain those levels at the close. The indices are seen following this trend since last few trading sessions. The metal stocks remained active all through the day supporting the rally.

The Sensex began the session mere four points lower at 17874 and also its day’s low. The index in few seconds of trade turned positive. The Sensex traded firm all through the morning session taking support of the positive global markets. The index strengthened owing to robust earnings posted by India Inc and crossed its 18000 levels to touch the day’s high of 18012. However, the Sensex was unable to hold those levels in the afternoon session. The positive European markets led the momentum to continue. The tremendous buying in the metal stocks also helped the Sensex to end the session on a positive note.

At closing, the Sensex shut 99 points higher at 17977. The Nifty closed just one point below 5400 levels at 5399, up 31 points.

Market Outlook: Its another big earnings night in the US tonight, with results including Morgan Stanley, Coke, eBay, Qualcomm, Starbucks, Wells Fargo and United Tech. Fed Chairman Ben Bernanke will begin his two-day testimony to Congress, so all ears will be peeled.

Market sentiment

The market breadth was positive, as the advancing shares dominated the trailing ones. Out of 3,025 shares on the BSE, 1,550 shares (51.24%) advanced and 1,349 shares (44.60%) trailed. Hundred and twenty-six shares (4.17%) closed unchanged.

Sectoral & stock screening

All the 13 sectors performed well, except BSE health care (HC) that ended marginally lower by 0.27%.
BSE Metal was the topper, up 3.16% on increased demand from consuming industries amid firming trend at the London Metal Exchange. BSE Realty and BSE Auto gained nearly 1% each.

The rest of the sectors were up in the range of 0.04-0.73%.

In 'A' group stocks, the toppers' were - Crompton Greaves (up 6.76%), REI Agro (5.82% higher) and JSW Steel (up 5.01%).

The losers' were - Shree Renuka Sugars (down 4%), Sun TV Network (2.80% lower) and Andhra Bank Products (down 2.28%).

Viewing volumes

Industrial finance company - IFCI was the most actively traded share with over 0.47 crore shares changing hands on the BSE, followed by India's second largest developer - Unitech (0.31 crore shares), largest exporter of iron ore in India - Sesa Goa (0.28 crore shares), one of the world's pioneering steel companies - Tata Steel (0.28 crore shares) and India's largest non-ferrous metals and mining company - Sterlite Industries (0.23 crore shares).