20K for Sensex, 6K for Nifty in the hindsight

Major headlines:

Core Projects hits 52-week high on acquisition; the stock closes 1.52% up

KSK Energy rises on securing funds; the stock ends 5.50% higher

Steel Strip wins repeat export order; the stock closes higher by 6.44%



Indian indices

Bulls continued to haunt bears, as the domestic markets spiked again in today’s trade, extending previous week’s stupendous rally in ten months. The nation’s economic growth lured foreign investors to increase their holdings, which supported the markets to remain upward to close the first day of a new week on an extremely strong note and at the high point of the day after a stellar performance in almost all the sectors. The global cues were good, however, the domestic markets appeared to outperform its global peers, with the Nifty inching close to the 6000 mark.

Largecap stocks like ITC, Reliance Communications, Hero Honda, Hindustan Unilever, Housing Development Finance Corporation (HDFC) and Bharat Petroleum Corporation surged between 3.7-6%. On the other side, the sell-off in NTPC, Sterlite, State Bank of India, Bharat Heavy Electrical, Wipro and Ranbaxy Laboratories capped the gains to some extent.

Tracking negative Asian markets, the Sensex began the first day of a new week on a negative note, 150 points lower at 19445 (day’s low). The index soon recouped its initial losses and picked up speed in its early trades, shrugging off weak global cues. The Sensex remained in the positive zone all through the morning session owing to tremendous buying in the fast moving consumer goods (FMCG), realty, telecom, consumer durables, oil & gas and metal stocks. The index continued its northbound journey in the afternoon session, as the European markets opened higher. In the late trades, buying intensified across the board and strong gains in the index heavyweights like ITC, Reliance Industries and HDFC, lifted the Sensex to touch the day’s high of 19927.

At the closing point, the Sensex shut above 19900 at 19906, 311 points higher. The Nifty closed at 5980, 96 points up.

Bond and Rupee update: India’s 10-year bonds fell, pushing yields to the highest level in two weeks, after corporate tax payments reduced the availability of funds in the banking system
to buy debt. India’s rupee climbed to a three-month high on speculation that accelerating capital flows into the local stock market will offset the nation’s record current-account deficit.

Market Outlook: We have NAHB Housing Index data in the US today, whereas we have the US Federal Reserve's policy meeting on Tuesday (September 21, 2010).

Global signals

The European equities bounced back today, with a jump in Suedzucker on a rise in revenue propelling food and beverage shares into the top gainers.

The Asian stock markets ended mixed today, ahead of the US Federal Reserve's policy meeting and the US housing starts data Tuesday. Japanese Nikkei was closed today.

The US stock index futures pointed to a slightly higher open on the Wall Street tonight.

Market sentiment

The market breadth was positive, as advancing stocks outpaced the declining ones. Out of the 3,105 stocks traded on the BSE, 1,779 advanced while 1,208 fell. Hundred and eighteen stocks remained unchanged.

Sectoral & stock screening

With the bulls marching ahead all through the day, it was all green on the sectoral indices’ front. BSE FMCG was blazing in today’s trade, gained by 3.50%. BSE Realty was the second gainer, up by 1.73%, followed by BSE Auto that geared up by 1.31%. The remaining sectors rose in the range of 0.32-.1.28%

Among 'A' group stocks, the top three gainers were - Gujarat Mineral Development Corporation gained by 6.60%, KSK Energy Ventures surged by 5.50% after the company tied-up $3.6 billion for power project and Reliance Communications rose by 5.14%. The top three losers were - Godrej Consumer Products slipped by 5.01%, Shipping Corporation of India fell by 2.92% and Indiabulls Financial Services declined by 2.61%.

Viewing volumes

Leading integrated steel makers - Ispat Industries saw highest trading, with over 2.88 crore shares changing hands on the BSE, followed by wind turbine major- Suzlon Energy (0.70 crore shares), industrial finance company - IFCI (0.48 crore shares), India's second largest developer - Unitech (0.34 crore shares) and one of the leading players in the Indian financial services space - India Infoline (0.32 crore shares).