Sensex strengthens as world stocks rebound

Today's major news

Tata Power wins Satpura CBM block; the stock ends up 0.49%

NTPC, Government of India sign contracts; the stock closes 0.60% higher

Polaris Software surges on winning project; the stock ends3.83% higher



Global signals

On Tuesday (July 06, 2010), European shares rebounded from a six-week closing low led by buoyant mining shares while recently hit banking stocks recover ground.

All the major Asian indices closed in the positive territory. As Shanghai Composite and Hang Seng surged the most with gains of over 1% each. SGX Nifty closed 53.50 points higher.

The US stock index futures signal positive start on the Wall Street on Tuesday. The investors may keep an eye on the Institute for Supply Management (ISM) service data for the month of June.

Indian indices

The domestic markets broke its three-day losing run to end the session with strong gains. The sentiments turned bullish after the markets across the globe recovered from recent lows. The Indian markets rallied mirroring gains from the global markets.

The key benchmark index, Sensex, began on a soft note, 39 points down at 17403 on account of the muted Asian cues. The domestic markets could not get any support from the US markets as they were shut yesterday. The index touched the day's low of 17396 in its early trades. However, the Sensex gathered momentum to trade in the green zone as the Asian markets regained strength. The index traded strong as the day progressed. In the afternoon session, the index doubled its gains owing to rebound in the European markets. The buying in metal, consumer durables (CD), banking and information technology (IT) stocks also supported the rally. In the late session, the index continued its uptrend to touch the day’s high of 17643.

At the closing, the Sensex shut shop at 17614, 173 points higher and the Nifty ended at 5289, up by 53 points.

Market sentiment

The market breadth was strong as advancing stocks outnumbered declining stocks. Of the 3,004 stocks traded on the BSE, 1,628 stocks advanced, whereas 1,249 stocks declined. Hundred and twenty seven stocks remained unchanged.

Sectoral & stock screening

All the 13 sectoral indices closed on a positive note in today's trade.

The metal stocks topped the gainers’ chart after the rise in the Chinese markets, with BSE Metal up by 1.88%, followed by BSE CD that surged by 1.77% and BSE Bankex that advanced by 1.73%.

The other gainers were – BSE IT, BSE TECk and BSE Realty that rose more than 1% each. While, the rest of the sectors closed in the range of 0.25-0.75% higher.

In ‘A’ group stocks, Bharat Forge was the major gainer, up by 5.49%, followed by Indian Overseas Bank that surged by 5.11% and Pantaloon Retail (India) that rose by 4.84%. Among the laggards, United Phosphorus slid the most by 2.05%, followed by Apollo Hospitals Enterprise that fell by 1.82% and Reliance Communications that shed 1.80%.

Viewing volumes

Industrial finance company - IFCI saw highest trading on the fifth straight day with over 0.76 crore shares changing hands on the BSE, followed by Anil Dhirubhai Ambani Group (ADAG) company - Reliance Natural Resources (0.45 crore shares), the pioneer in shared telecom infrastructure in India - GTL Infrastructure (0.37 crore shares), one of the Asia's leading integrated telecom service provider - Bharti Airtel (0.30 crore shares) and ADAG firm - Reliance Power (0.22 crore shares).