IT, metals lead markets to close above key levels

The Sensex and the Nifty closed above their important levels of 19000 and 5700 respectively led by upmove in IT, metal shares

Major headlines

GAIL Q3 net profit rises by 13% yoy

Bajaj Finserv Q3 net profit rises 175% yoy

Indiabulls Real Estate Q3 cons net surges 28-fold



Indian indices

The Indian markets rallied smartly, with the Sensex and the Nifty closing above their important levels of 19000 and 5700 respectively. Good earnings from IT major Tata Consultancy Services and positive European cues lifted the sentiments. The Sensex outperformed the Mid-cap and Small-cap indices. The upmove was led by IT, metal, telecom, healthcare, FMCG and banking stocks.

Bharti Airtel, Reliance Industries, Reliance Infrastructure, Housing Development Finance Corporation, GAIL, Sesa Goa, DLF and Tata Power were the major losers, which caped the gains to major extent.

The Sensex started the session 101 points higher at 18983. The index trimmed gains in the morning trade and hit the day’s low of 18933. The index continued to trade firm in the afternoon session as the positive European indices boosted sentiments. The index gathered pace in the late trade to hit the day’s high of 19121 as strong buying was seen in IT and metal stocks.

At the closing, the Sensex rose by 210 points to close at 19092 and the Nifty settled at 5724, up by 69 points.

Bond & Rupee update: India’s benchmark bond due 2020 gained for the first time in three days on speculation yields at their highest level in eight months will lure investors. Yields on the nine-year bond rose 32 basis points this month through yesterday. India’s rupee halted a three-day slide on speculation overseas investors are reining in sales of the nation’s shares, after pulling $698 million from the market in the first two weeks of this year.

Market sentiment

The market breadth stood in favour of advances. Out of the 3,001 stocks traded on the BSE, 1,490 gained while 1,342 declined. Whereas, hundred and sixty-nine stocks remained unchanged.

Sectoral & stock screening

All the 13 sectoral indices ended the session in the positive territory except BSE Oil & Gas that fell by 0.12%. BSE Information Technology (IT) was the top gainer, up by 2.60%, followed by BSE Metal up by 2.31% and BSE TECk rose by 1.80%. Rest of the indices gained in the range of 0.02-1.64%.

In 'A' group stocks, top three gainers were Opto Circuits surged by 10.55%, Tata Consultancy Services rose by 5.48% and Bajaj Finserv up by 4.80%. Top three losers were Exide Industries slid by 11%, Zee Entertainment slipped by 5.50% and Glenmark Pharma dropped by 4.97%.

Viewing volumes

Wind turbine major - Suzlon Energy was traded the most, with over 0.58 crore shares changing hands on the BSE, followed by Exide Industries (0.52 crore shares), construction firm - Hindustan Construction Company (0.47 crore shares), a flagship company of Adani conglomerate - Adani Enterprises (0.29 crore shares) and Jaypee Group firm - Jaiprakash Associates (0.27 crore shares).

Global signals

The European shares hit a 28-month high, with stronger metals on a weaker dollar and supply worries boosted miners, while banks bounced back after losses in the previous session.

All the major Asian markets ended the session in the positive zone except Hang Seng and Kospi indices.

The US stock index futures point to a mixed opening on the Wall Street. Earnings of Apple, Citigroup and IBM will be in focus.

Market outlook: Investors will look for results of Apple, Citigroup and IBM. On the economic data font, Empire State Manufacturing Index and TIC Long-Term Purchases (this data track the flows of financial instruments into and out of the United States) will be out.