Sensex ends buoyant; Cipla, Tata Steel spurt

Indian equities continued to rise for the third day on Wednesday. The Sensex ended on an optimistic note on the back of strong global cues and relentless buying interest across board. Broader markets outperformed. Metal, PSU, realty, banking stocks were in the limelight. Moreover good auto sales November figures also aided the markets to rally. Finally both indices settled over 1% gain.



On global front, European stocks climbed for the first time in four days, rebounding from an eight-week low, as Chinese manufacturing expanded for a fourth straight month. US index futures gained.

Asian stocks rose, with the regional benchmark index rebounding from its first monthly decline in three months, as confidence among US consumers increased in November and China`s manufacturing expanded for a fourth straight month.

From the Asian space again, China`s manufacturing grew at a faster pace in November showing that the economy is on the right track. The Chinese PMI rose to 55.2 from 54.7 in October.

``The stronger-than-expected Q2 GDP data and other economic statistics seem to have worked wonders for the market sentiment even as uncertainty persists over the euro zone debt situation and geopolitical tension on the Korean peninsula. Strong cues from the European markets added fuel to the fire despite a sluggish finish in other Asian markets``, says Amar Ambani, head of research (India private clients) – IndiaInfoline, IIFL.

The month of October 2010 saw auto sales from the major original equipment manufacturer (OEM`s) at an all-time high on account of the festive season. This month (November) saw a slowdown in the same. Selectively, across segments the numbers went back to its Q1FY11 levels, lower than the average runrate of Q2FY11. TVS Motors, Mahindra & Mahindra and Tata Motors were below expectations.The only out performer in terms of monthly sales was Maruti Suzuki India, which touched the 1 lakh unit mark for a second consecutive month, said Way2Wealth.

At the close, the benchmark 30-share index, BSE Sensex added 328.75 points or 1.68% at 19,850 with 24 components registering rise. Meanwhile, the broad based NSE Nifty went up by 98.20 points or 1.67% at 5,960.90 with 39 components posting rise.

Sensex Movers

Larsen & Toubro contributed rise of 56.24 points in the Sensex. It was followed by State Bank Of India (39.81 points), H D F C Bank (35.95 points), I C I C I Bank (34.58 points) and Tata Steel (25.02 points).

However, Bharti Airtel contributed fall of 14.65 points in the Sensex. It was followed by Hero Honda Motors (5.79 points), Wipro (4.4 points), Hindustan Unilever (2.39 points) and Maruti Suzuki India (2 points).

Major gainers in the 30-share index were Cipla (6.30%), Tata Steel (5.04%), Mahindra & Mahindra (4.53%), Tata Motors (4.13%), Larsen & Toubro (4.04%), and Reliance Communications (3.94%).

On the other hand, Bharti Airtel (2.51%), Hero Honda Motors (2.28%), Wipro (1.34%), Maruti Suzuki India (0.77%), Hindustan Unilever (0.57%), and Tata Consultancy Services (0.07%) were the biggest losers in the Sensex.

Mid & Small-cap Space

The BSE Mid and small caps outperformed their larger counterparts gaining 2.83% and 3.14% respectively.

The major gainers in the BSE Midcap were Aban Offshore (6.91%), A I A Engineering (4.01%), Ackruti City (3.97%), Alstom Projects India (2.37%) and Core Projects and Technologies (2.21%).

The major gainers in the BSE Smallcap were Aarti Industries (5.7%), A B G Shipyard (4.31%), Abhishek Industries (3.24%), A K Capital Services (2.93%) and INEOS ABS (India) (2.71%).

Sectors in Limelight

The Metal index was at 16,156.05, up by 529.94 points or by 3.39%. The major gainers were JSW Steel (6.67%), National Aluminium Company (3.95%), Jindal Steel & Power (3.78%), Hindalco Industries (3.66%) and Hindustan Zinc (3.12%).

The PSU index was at 9,586.69, up by 295.69 points or by 3.18%. The major gainers were Bank Of Maharashtra(4.52%), Andhra Bank (3.61%), Bank Of India (3.6%), Allahabad Bank (2.5%) and Bank Of Baroda (1.79%).

The Realty index was at 3,016.34, up by 90.94 points or by 3.11%. The major gainers were D B Realty (4.98%), Anant Raj Industries (4.21%), Ackruti City (3.97%), D L F (3.79%) and Indiabulls Real Estate (2.44%).

On the other hand, the TECk index was at 3,724.08, down by 1.16 points or by 0.03%. The major losers were Bharti Airtel (2.51%), Mphasis (1.62%), Jagran Prakashan (0.94%), Idea Cellular (0.69%) and G T L (0.38%).

Market Breadth

Market breadth was positive with 2,446 advances against 607 declines.

Value and Volume Toppers

State Bank Of India topped the value chart on the BSE with a turnover of Rs. 2,367.80 million. It was followed by Tata Motors (Rs. 1,278.29 million), L I C Housing Finance (Rs. 1,252.32 million) and Gravita India (Rs. 1,015.83 million).

The volume chart was led by Cals Refineries with trades of over 240.79 million shares. It was followed by Karuturi Global (13.66 million), FCS Software Solutions (11.67 million) and Ispat Industries (10.64 million).