Markets regain key levels on strong global cues

It The Indian markets regained crucial levels, with the Sensex closing above 20000 and the Nifty up 6000 on encouraging set of global cues

Major headlines

JSW Steel to buy controlling stake in Ispat Industries

Satyam Computer shoots up on NYSE re-listing plan

Sun Pharmaceuticals dips on suit over patent infringement



Indian indices

It was a good session for the Indian markets, with the Sensex closing above 20000 levels for the first time in last 24 sessions and the Nifty ending above 6000 levels for the first time in last 12 sessions. Encouraging set of global cues played a key role in today’s uptrend. The support was also led by buying in banks, realty and metal space.

Heavyweight Reliance Industries was the leader today, rose by 1.32% as the company started drilling second well in KG-D9, Hardy Oil said. Results of KG-D9 well drilling will be seen in January-March.

However, upside was capped to some extent due to selling in Sun Pharmaceutical Industries, Infosys Technologies, Tata Consultancy Services, NTPC, Bharti Airtel, Oil & Natural Gas Corporation, Hindustan Unilever, Dr Reddy's Laboratories, Hero Honda, Bharat Petroleum Corporation along with cement companies' shares.

In midcap space, ARSS Infrastructure Projects, Akzo Nobel, India Infoline, Wockhardt and MVL gained by 5-7.5%. Ispat Industries lost by 14% (JSW Steel will be promoter of the company and will announce open offer for the company tomorrow). AIA Engineering, Money Matters, Sintex India and Unichem Laboratories slipped by 4.5-5%.

The Sensex began the session 37 points higher at 19926, making such level its day’s low. The Sensex crossed 20000 levels in initial trade and remained in the positive zone all through the morning session, hitting the day’s high of 20091. The supportive global cues led the Sensex to trade higher as the session progressed and shut on a strong note.

At the closing, the Sensex surged 171 points to close at 20060 and the Nifty ended at 6001, advancing 54 points.

Market sentiment

The market breadth was strong as gaining shares outpaced the losing ones. Out of the 3,016 stocks traded on the BSE, 1,760 advanced while 1,091 fell. Hundred and sixty-five stocks traded unchanged.

Sectoral & stock screening

Of the 13 sectoral indices, ten ended higher, while remaining three closed lower. Among gainers, BSE Metal was ahead of all sectors rising by 2.76%, followed by BSE Bankex up by 2.34% and BSE Realty gained by 1.25%. On the losers’ front, BSE Health Care (HC) lost the most by 0.32%, followed by BSE TECk and BSE Information Technology (IT) declined by 0.24% and 0.17% respectively.

Looking into 'A' group stocks, Asian Paints was the biggest gainer, up by 5.51%, followed by Tech Mahindra up by 5.38% and Jai Corp advanced by 5.06%. Among laggards, Opto Circuits slid the most by 4.24%, followed by Sintex Industries down by 3.87% and Power Finance lost by 3.44%.

Viewing volumes

State-run fertiliser firm - Rashtriya Chemicals & Fertilizers was traded the most, with over 0.42 crore shares changing hands on the BSE, followed by wind turbine major - Suzlon Energy (0.34 crore shares), industrial finance company - IFCI (0.32 crore shares), aluminum major - Hindalco Industries (0.27 crore shares) and a diversified firm - Adani Enterprises (0.25 crore shares).

Global signals

The European markets climbed to a 27-month high in holiday-thinned trade, with record high copper prices on supply concerns helping mining stocks to gain, though lower volumes had potential to exaggerate moves.

The Asian markets closed on a higher note, Shanghai Composite up by 1.79%, Jakarta Composite up by 1.66%, Hang Seng up by 1.57% and Nikkei up by 1.51%.

The US stock index futures point to a higher opening on the Wall Street. The investors will keep an eye on earnings of ConAgra Foods, Carnival Corp, Cintas Corp, Nike and Red Hat Inc.

Market Outlook: No major data in the US tonight.