Sensex above 20K, Nifty over 6K

Major headlines:

EIH zooms on rights issue plan; the stock closes 1.32% higher

Indian Oil Corporation spurts on raising petrol prices; the stock ends 0.79% lower

Suven Life energises on securing two US patents; the stock closes 2.35% higher



Indian indices

Bulls were on the rampage once again, as the domestic indices head upwards, with the Sensex and the Nifty hitting 20000 and 6000 levels respectively for the first time since January 17, 2008. The foreign funds of over Rs15.4 billion in the last 13 sessions have aided the indices to touch new highs. However, it wasn’t a smooth journey for the global markets, ahead of the Fed Reserve’s meet on rate decision today, as the investors remained cautious and the global markets traded volatile as expected. The Nifty and the Sensex flirted with the significant levels of 6000 and 20000 respectively throughout the day.

The 30-share index, Sensex commenced the session higher by 20 points at 19926, mirroring positive global cues. In early trades, the index hit the day’s high of 20089 as the Asian markets were trading higher, coupled with buying seen in the capital goods and power sectors. The Sensex soon slipped from the day’s high, as the investors booked profits in the index heavyweights. In the mid-morning session, the Sensex witnessed a choppy trade and hit the day’s low of 19861. The index soon rose from the day’s low and traded choppy till the afternoon session. The positive European markets boosted the sentiments and the Sensex traded higher. In late trades, buying in information technology and telecom stocks, coupled with rise in the index heavyweights like Larsen & Toubro, Tata Consultancy Services and Housing Development & Finance Corporation, led the Sensex to close on a strong note.

At the closing, the Sensex shut 95 points higher, at 20002. The Nifty closed 29 points up, at 6009.

Debt Markets and Rupee update: India’s rupee rose to a four-month high, as gains in the stocks spurred optimism that the overseas investors will increase purchases of local assets from record levels. The ten-year bond yield settled at 7.976 %, which almost ended flat.

Market Outlook: Tonight, Federal Reserve’s Chief Ben Bernanke would give its brief on the rate decision though nothing is expected on the interest rate front. What would be watched closely is any hint on Quantitative Easing 2 (QE2) front. Some data on housing front, which would be announced before the US markets starts.

Global signals

The European shares were slightly higher in choppy trade, as investors waited to see if the US Federal Reserve would announce further measures to support economic recovery.

The Asian markets shut higher except Jakarta Composite and Nikkei. South Korea’s Kospi was closed today.

The US index futures point to have a flat start on the Wall Street tonight, ahead of the Fed’s meet and release of housing starts data.

Market sentiment

The market breadth was unconstructive, as declining stocks outpaced the advancing ones. Of the 3,113 scripts traded on the BSE, 2,123 shares fell whereas 883 shares rose. Hundred and seven shares traded unchanged.

Sectoral & stock screening

Out of the 13 sectoral indices, six ended higher while rest seven shut lower. BSE IT was the top performer, up by 2.43%. BSE TECk surged by 1.62%, followed by BSE Capital Goods (CG) that gained by 1.12%. On the flip side, BSE Fast Moving Consumer Goods (FMCG) was the worst performer, down by 1.34%. BSE Realty lost by 1.30%, followed by BSE Consumer Durables (CD) that fell by 0.67%.

Looking into 'A' group stocks, top three gainers were - Ranbaxy Laboratories was the major gainer, up by 5.59%, followed by Tata Consultancy Services that surged by 4.63% and Marico rose by 3.88%. Top three losers were - Gujarat Mineral Development Corporation slid the most by 4.17%, followed by Rural Electrification Corporation that fell by 4.05% and Godrej Consumer Products lost by 4.02%.

Viewing volumes

Steel maker- Ispat Industries was traded the most, with over 1.67 crore shares changing hands on the BSE, followed by industrial finance company - IFCI (1.25 crore shares), wind turbine major - Suzlon Energy (0.60 crore shares), India's second largest developer - Unitech (0.24 crore shares) and private sector player offshore and onshore exploration and production company - Essar Oil (0.26 crore shares).