Nifty crosses 6100

Major headlines

India’s exports up 22.5% at $16.64 billion

Maruti Suzuki September sales jump 29.6%; the stock ends 2.88% higher

Sterlite Industries gains as unit closure gets Supreme Court relief; the stock closes 5.13% up



Indian indices

It was a stellar start by the domestic markets on the first day of October. The markets rose, extending its longest stretch of weekly gains in five months after Goldman Sachs raised the economic growth estimate, citing the benefits of a better-than-forecast monsoon and consistent inflow of funds from the foreign institutional investors. The Nifty added 734.7 points (13.58%) and the Sensex 2446.63 points (13.59%) during the same period. The encouraging sales numbers and strong exports data also supported the domestic markets. Better-than-expected manufacturing data in China lifted the investor sentiment across the globe. The Nifty closed above another psychologically important levels of 6100 on buying across the sectors; even it touched 6150 levels in an intraday trade.

Buying was witnessed in all the sectors. Index heavyweights like Reliance Industries, ICICI Bank, Sterlite Industries, Infosys Technologies, Tata Consultancy Service and Tata Motors were the major gainers. However, Hero Honda, HDFC Bank, Reliance Communications and Ambuja Cements were the losers on the Nifty.

Tracking strong Asian markets, the Sensex started the session 25 points higher at 20094, making that levels its day’s low. The index gathered momentum and traded in the positive territory throughout the morning session. The Sensex continued its upward journey in the afternoon trades, as the European markets opened higher. In the late trades, the Sensex hit the day’s high of 20475 as buying intensified in realty and metal stocks.

At the closing bell, the Sensex shut shop at 20445, 376 points higher. The Nifty ended at 6143, up by 113 points.

Bond and Rupee update: India’s ten-year bonds dropped for the first time in nine days on speculation that the lowest yield in six weeks was deterring investors from buying the securities. India’s rupee advanced to its strongest level in almost five months after central bank data showed capital inflows more than offset a record current-account deficit in first quarter of this fiscal year.

Market Outlook: We have Personal Income and Spending data, University of Michigan Confidence and ISM Manufacturing Index data in the US tonight.

Market sentiment

The market breadth was strong as rising stocks outnumbered the falling ones almost twice. Out of the 3,099 stocks traded on the BSE, 1,993 advanced while 984 declined. Hundred and twenty-two stocks remained unchanged.

Sectoral & stock screening

With the bulls charging ahead all through the day, it was all green on the sectoral indices front. The BSE Realty was the top performer, rose by 4.03%, followed by the BSE Metal that gained by 3.87% and the BSE Capital Goods (CG) surged by 2.69%. Rest of the indices were up in the range of 0.65-2.57%.

On the ‘A’ group stocks' front, Steel Authority of India was the star stock of the day, up by 8.95%, followed by IFCI that advanced by 8.76% and Godrej Industries rose by 7.28%. On the losers’ side, Pipavav Shipyard was the major loser, fell by 8.73%, followed by GTL Infrastructure that declined by 2.36% and Jain Irrigation slipped by 1.99%.

Viewing volumes

Industrial finance company - IFCI was traded the most, with over 2.11 crore shares changing hands on the BSE, followed by India’s second largest developer - Unitech (1.12 crore shares), wind turbine major- Suzlon Energy (0.51 crore shares), India’s biggest copper and zinc producer - Sterlite Industries (0.41 crore shares) and Indian shipbuilder - Pipavav Shipyard (0.39 crore shares).

Global signals

The European shares rose after strong manufacturing data in China pleased the investors and boosted confidence in the global economic recovery.

The major Asian indices shut in the green. Indices like China’s Shanghai Composite and Hong Kong’s Hang Seng were closed today on account of National Holiday.

The US stock index futures signal towards a higher opening on the Wall Street tonight, ahead of the ISM Manufacturing index for September.