Sensex springs back to life...ends above 19,500

A day after suffering a heavy loss, the Indian market managed to stage a spirited recovery on the back of sustained strength in pivotal index heavyweights, as investors welcomed a better-than-expected IIP data for October. Also, the market was primed for a technical bounce back after five straight days of losses.



The BSE Sensex closed above 19,500 and the NSE Nifty ended above the 5850 mark, recouping half of the previous session's big losses.

The rebound was not restricted to the Large Cap stocks alone. The Small Cap and Mid Cap counters actually out-performed the frontline peers, as investors reckoned that the recent selloff in some of these scrips was over done.

Market sentiment received a big boost after October's IIP data came in much above consensus estimates. Industrial output grew by 10.8% in October after expanding by just 4.4% in the previous month. The consensus estimate was for a growth of 8.5%.

The Sensex closed at 19,508, up 266 points or 1.4% from the previous close. It had earlier been as low as 19,074 and as high as 19,537 after opening at 19,201.

The NSE Nifty rose 90 points or 1.6% to close at 5,857 after touching a day's low of 5,721 and a day's high of 5,865. It had opened at 5,761.

In the broader market, the BSE Small-Cap index and the BSE Mid-Cap index were up 2.3% and 2%, respectively.

It wasn't a smooth ride from the start for the Indian market though, as the key indices struggled initially before gradually inching higher. The real momentum in the market came at around 11:00 PM (IST) after the release of the IIP report by the Government.

What also might have helped the Indian market was the fact that Chinese stocks rallied today after the recent reversals despite growing fears of further monetary tightening. China's central bank did announce a 50 bps hike in the banks' reserve requirement ratio after the markets closed.

KS Oils, Bayer Crop, Geodesic, Arshiya Intl, Marg, Ruchi Soya, ABG Shipyard, Core Projects, Rain Commodities, Kingfisher Air, S Kumar Nation, ACC, Glodyne Tech and Shree Renuka Sugars were among the notable gainers in the broader market.

Outside the two main indices, the key losers were Karuturi Glob, Kiri Dyes, D B REALTY, JMD Telefilms, Koutons Retl, Amtek India, Shree Ashtavina, Spicejet, Emami and Bajaj Auto.