Markets dance on global tunes

Major headlines

Sintex Industries Q2 net profit surges 54% yoy; the stock closes 1.30% higher

Indusind Bank Q2 net profit zooms 71% yoy; the stock ends 1.68% lower

Gallantt Ispat makes a stellar debut



Indian indices

The domestic markets advanced after two-day of losses as investors judged that the outlook for domestic consumption would remain robust, buoying company earnings. Also rise in the world stocks on expectation that the US Federal Reserve and other central banks will step in to boost the economy; this buoyed investor sentiments. On the first trading session of the week, the domestic markets were mostly rangebound and action was confined to mid-cap and small-cap stocks as they outperformed the Sensex. Metal stocks along with auto packs were the best performers in today's trade. The rupee gained by 5% against the dollar in the past month as global funds pumped a record $21 billion into Indian stocks this year on optimism about the South Asian nation’s growth prospects.

Tata Motors, the biggest truck maker and owner of Jaguar Land Rover, climbed for the first time in three sessions. Sterlite Industries advanced with raw material prices amid speculation that the US Federal Reserve will act to further stimulate economic growth, supporting a fragile global economic recovery.

The Sensex began on par with the previous session’s close at 20250 and also its day’s low. The index picked up speed and the hit the day’s high of 20461 in initial trades. The Sensex traded rangebound with a positive bias throughout the morning session. In the afternoon session, the Sensex continued to trade in the green as the European markets were in the positive zone and also buying was witnessed in auto and metal stocks.

At the finishing line, the Sensex closed 90 points higher at 20340. The Nifty shut shop at 6136, up by 32 points.

Bond and Rupee update: India’s rupee rose towards a two-year high on speculation that the overseas investors will pump more funds into the nation’s assets as the economic outlook improves. India’s ten-year bonds rose on speculation that the yields near a five-week high were attracting buyers before this week’s data on inflation.

Market Outlook: There is no major data in the US tonight.

Market sentiment

The market breadth was positive as gaining stocks outpaced the falling ones. Out of the 3,078 stocks traded on the BSE, 1,856 advanced while 1,069 declined. Hundred and fifty-three stocks traded unchanged.

Sectoral & stock screening

BSE Auto was in top gear, up by 1.93%, followed by BSE Metal that advanced by 1.57% and BSE Oil & Gas surged by 1.29%. On the losers’ side, BSE TECk fell the most by 0.31%, followed by BSE Information Technology (IT) that lost by 0.12% and BSE Fast Moving Consumer Goods (FMCG) slipped by 0.01%.

Among 'A' group stocks, top three gainers were - Rashtriya Chemicals & Fertilizers surged by 8.44%, National Fertilizers rose by 5.88% and Godrej Industries gained by 5.63%. Top three losers were - Indiabulls Financial lost by 4.10%, Bharti Airtel slipped by 2.48% and Biocon declined by 2.43%.

Viewing volumes

Industrial finance company - IFCI was the most traded, with over 2.30 crore shares changing hands on the BSE, followed by a Government of India hydro power firm - NHPC (0.29 crore shares), wind turbine major - Suzlon Energy (0.29 crore shares), public sector firm - Rashtriya Chemicals & Fertilizers (0.25 crore shares) and a leading financial service firm - Indiabulls Financial (0.21 crore shares).

Global signals

European indices rose, tracking gains on the Wall Street, after Friday's weaker-than-expected US labour data reinforced hopes that the US Federal Reserve would inject fresh stimulus into the economy.

The major Asian indices closed in the green except Kospi index. Japan’s Nikkei was shut today.

The US stock index futures point to a slightly higher opening on the Wall Street tonight, helped by mounting expectations of further action from the Federal Reserve to support the economy.