Sensex flirts with 20K, Nifty regains 6K

The domestic indices rallied for the fourth straight day led by buoyant global markets, with the Sensex flirting with 20000 and the Nifty regaining 6000 mark

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Indian indices

The domestic markets extended their winning streak for the fourth consecutive day led by buoyant global markets. Buying in oil & gas exploration, financial, technology, metal, realty and Anil Dhirubhai Ambani Group companies' shares also led the markets to rise. The Nifty closed above its psychologically important levels of 6000 for the first time in the last eight sessions. The Sensex also surpassed the 20000 mark but could not manage to hold that level at close. Small-cap and Mid-cap indices outperformed the Sensex in today’s trade.

In Mid-cap space, Gujarat Flurochemicals, Raymond, Man Infraconstruction and Dishman Pharmaceuticals surged in the range of 9-17%. Among index stocks, Reliance Communications, Sterlite Industries and Wipro were the major gainers.

Tracking strong global cues, the Sensex started the day 189 points higher at 20039 and in few minutes hit the day’s high of 20084. The index began to trim gains from highest level and hit the day’s low of 19918 in the morning session. The Sensex carried its morning gains in the afternoon session as European markets traded higher to close the session on a positive note.

At the closing, the Sensex shut shop at 19993, higher by 143 points. The Nifty closed at 6012, up by 51 points.

Bond and Rupee Update: India’s 10-year bonds dropped for a fourth day on speculation a shortage of cash in the banking system will deter buyers. The yields climbed to the highest level in more than a month as Reserve Bank of India’s Deputy Governor Subir Gokarn signalled yesterday the central bank will refrain from cutting the cash reserve ratio. The yield on the 7.80% note due May 2020 rose 1 basis point to 8.12% near to its earlier high of 8.13%, the highest level since October 28.

India’s rupee traded near this week’s high at 45.32 on optimism share sales by local companies will prompt global funds to boost their record investment in the nation’s equities for this year.

Market sentiment

The market breadth was constructive as gaining stocks outpaced losing ones. Of the 3,049 stocks on the BSE, 1,882 surged while 1,033 fell. Hundred and thirty-four stocks traded unchanged.

Sectoral and stock screening

Eleven out of thirteen sectoral indices closed in the green. BSE Auto and BSE Capital Goods (CG) were the only losing sectors, down by 0.30% and 0.26% respectively. Among gainers, BSE Realty surged the most by 2.23%, followed by BSE Metal that advanced by 1.48%, while BSE Information Technology (IT) and BSE Oil & Gas surged by 1.47% each. Rest of the indices gained in the range of 0.01-1.35%.

Among 'A' group stocks, top gainers were - Housing Development & Infrastructure up by 9.09%, Jain Irrigation surged by 7.01% and Pantaloon Retail rose by 6.67%. Top losers were - Hero Honda Motors slid by 7.27%, Ultratech Cement fell by 4.74% and IRB Infrastructure declined by 3.39%.

Viewing volumes

Government's power utility - Power Grid Corporation was traded the most, with over 0.98 crore shares changing hands on the BSE, followed by wind turbine major - Suzlon Energy (0.46 crore shares), India's second largest developer - Unitech (0.39 crore shares), public sector firm- Rashtriya Chemicals (0.34 crore shares) and industrial finance company - IFCI (0.30 crore shares).

Global signals

The European shares rose, building on strong gains in the previous session, with investors expecting the European Central Bank (ECB) to announce new measures to tackle the euro zone debt crisis.

All the major Asian indices closed in the positive territory. Japanese Nikkei gained nearly 2%.

The US stock futures indicate to a higher opening on the Wall Street ahead of Weekly Jobless Claims & Continuous Claims and Pending Home Sales data.

Market Outlook: Tonight in the US, data released will be Weekly Jobless Claims & Continuous Claims along with Pending Home Sales.