Sensex buoyant as global markets rally

Major headlines

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Global signals

European markets extended its previous session’s gains in today’s trade, supported by the banking stocks. As encouraging US jobs data on Friday (September 03, 2010) eased concerns about the world's largest economy facing a double-dip recession.

All the major Asian indices closed in the green today. Japan’s Nikkei index surged over 2%.

The US markets remain closed today on account of Labour Day holiday.

Indian indices

Bulls were full of energy with domestic indices closing at 31-month high in today's trade. Tremendous spark was seen throughout the session owing to uptrend across the globe post better than expected US employment data. The Nifty was slowly marching towards 5600 levels and the Sensex ended above 18500 levels. The broader indices were also following benchmarks; the BSE Midcap index was up by 1.4% and Smallcap rose by 1.7%. Rally in metal, banking, IT and realty stocks also helped the indices to post a stellar performance.

Index heavyweights like Reliance Industries, State Bank of India (SBI), ICICI Bank, Tata Consultancy Services, Infosys Technologies, Tata Steel, Bharat Heavy Electricals and ITC were leading the markets. SBI and ICICI Bank surged by 3-4%. Housing Development Finance Corporation, Axis Bank, Punjab National Bank and Kotak Mahindra Bank were up by 1-2%. Tata Steel, Steel Authority of India, Sterlite Industries, Hindalco Industries and Jindal Steel from the metal space gained by 2-6%. DLF from the realty pack went up by 1.6% and Unitech rose by 3%.

The 30-share index - Sensex started the session surprisingly lower by 97 points at 18124 (day's low). However, the index soon surged erasing all its losses and entered into the positive zone. The Sensex continued to rally all the morning session tracking strong Asian markets. The index entered into the afternoon session carrying all its gains hitting the day's high of 18600 as the European markets opened on a higher note and strong buying seen in the index heavyweights.

At the finishing line, the Sensex closed at 18560, 339 points higher. The Nifty shut at 5577, higher by 98 points.

Bond market update: The rupee was at 46.51/52 per dollar as against Friday's closing of 46.63/64 per dollar, boosted by the gains in the domestic equity market and the dollar's losses versus major currencies. India's 10-year bond fell, pushing yields to their highest level in more than a week, as better-than-expected growth in the US employment increased the odds of a fifth interest-rate increase this year.

Market Outlook: US markets will remain closed tonight on account of Labour Day holiday.

Market sentiment

The market breadth was very strong as gaining stocks outdid two times the falling stocks. Of the 3,076 stocks traded on BSE, 2,072 rose while 881 fell. Hundred and twenty-three stocks remained unchanged.

Sectoral & stock screening

With the bulls charging ahead all through the day, it was all in green on the sectoral indices’ front. The BSE Metal was the best performer, gained by 3.47%, followed by the BSE Bankex that surged by 2.06% and the BSE Realty that rose by 1.98%.

Looking into 'A' group stocks, Tata Steel surged the most by 6.60%, followed by Sterling Biotech that rose by 6.49% and Bajaj Holdings & Investment that jumped by 6.29%. On the losers’ side, Hero Honda Motors lost the most by 1.92%, followed by EIH that slid by 1.89% and Chambal Fertilisers & Chemicals that fell by 1.36%.

Viewing volumes

Leading integrated steel makers - Ispat Industries was traded the most with over 0.85 crore shares changing hands on the BSE, followed by pharma company - Piramal Healthcare (0.72 crore shares), wind turbine major- Suzlon Energy (0.45 crore shares), Anil Dhirubhai Ambani Group company - Reliance Natural Resources (0.37 crore shares) and steel major - Tata Steel (0.34 crore shares).