Nifty regains 6k, Sensex nears 20k

The domestic indices saw a spectacular rally owing to all-round buying and positive global cues, with the Nifty reclaiming 6000 levels and the Sensex nearing 20000 levels

Major headlines

Fertilizer stocks dip as government cuts NBS subsidy

BHEL, GE ink pact for water treatment systems; the stock closes 0.64% up

Zensar Technologies to acquire US companies; the stock ends higher by 2.44%



Indian indices

It was a strong recovery for the Indian markets after dismal sell-off last week. The markets rallied substantially, its biggest advance in more than two weeks, as some investors judged recent declines were overdone relative to the earnings outlook. The Nifty crossed the psychological 6000 mark. The markets saw a spectacular rally owing to all-round buying and positive global cues.

Tata Motors, the nation’s biggest truckmaker, climbed 3.4%. Housing Development Finance Corporation, the biggest mortgage lender, rose by 3.1%. Wipro led gains among the software exporters.

The Sensex began the week 129 points higher at 19714. The index hit the day’s low of 19641 in early trade. From the day’s low, the index gathered momentum and climbed higher. As the session progressed, the Sensex continued to trade upwards. Positive European markets and strong buying seen across all sectors especially in banking, consumer durables (CD) and information technology (IT) stocks led the Sensex to hit the day’s high of 19989 in late trades.

At the finishing, the Sensex shut at 19958, higher by 372 points. The Nifty ended at 6010, up by 120 points.

Bond & Rupee Update: India’s ten-year bonds rose, pushing yields toward their lowest level in two weeks, on speculation the central bank will temper its interest-rate increases as inflation and industrial output growth slowed.

Market sentiment

The market breadth was constructive as advancing stocks outnumbered the declining ones. Of the 3,085 stocks on the BSE, 1,908 rose while 1,067 fell. Hundred and ten stocks remained unchanged.

Sectoral and stock screening

With the bulls marching ahead all through the day, it was all in green on the sectoral indices’ front. BSE Bankex was blazing in today’s trade, gained by 2.64%. BSE CD was the second gainer, up by 2.59%, followed by BSE IT that rose by 2.50%. The remaining sectors advanced in the range of 0.30-2.22%.

In ‘A’ group stocks - Jai Corp was the biggest gainer, surged by 16.41%, followed by UCO Bank that rose by 7.24% and Havells India gained by 6.40%. On the losers’ side, DB Realty lost by 5.49%, followed by Rashtriya Chemicals and National Fertilizers, which slid by 4.90% and 4.40% respectively after the government cuts NBS subsidy rates and also turns down the proposal to free urea prices.

Viewing volumes

India’s second largest developer - Unitech was traded the most, with over 0.37 crore shares changing hands on the BSE, followed by public sector bank - IDBI Bank (0.35 crore shares), industrial finance company - IFCI (0.33 crore shares), infrastructure firm - GVK Power & Infrastructure (0.28 crore shares) and PSU Bank - UCO Bank (0.24 crore shares).

Global signals

European shares rose, led by banking stocks after investor concerns about the euro zone peripheral debt crisis eased following Ireland's agreement to a bailout by the European Union and International Monetary Fund.

The major Asian indices closed on a mixed note. Indices like Shanghai Composite, Hang Seng and Straits times ended lower, while Nikkei, Jakarta Composite and Kospi shut higher.

The US stock index futures point to a higher opening on the Wall Street. The investors will keep an eye on the earnings of Hewlett-Packard, Analog Devices and Tyson Foods.

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