Post Market Review - Jan 12 2011

Markets broke the 6-day losing streak and did it in style as benchmark indices, after falling sharply on the back of disappointing IIP data, recovered a hefty 2.6% from the lowest point of the day and closed higher by just under 2%, the highest one day gain in nearly two months. Sensex surged 338 points to close at 19534 while Nifty settled at 5863, up 109 points. BSE mid-cap and small-cap indices gained 1.7% and 1.4% respectively. November IIP grew by just 2.7%, the slowest growth in a year and a half. October figure was however revised upward from 10.8% to 11.3%.Stocks belonging to beaten down rate sensitive sectors, viz. Realty, Banking and Auto gained the most in today's trade along with consumer durable and metal stocks, primarily on the back of short covering. Leading European markets were trading strong, with gains raging from 0.5% to 1.5% ahead of Portuguese bond auction. US stock indices futures were up about half a percent ahead of Fed report on current economic conditions.



Except Capital Goods index, that los 0.2%, all other BSE sectoral indices closed in green. Consumer Durable and Realty indices gained the most, putting on 4.6% and 3.3% respectively. Suzlong surged 12.6%, becoming the top gainer among the Nifty stocks, followed by Sterlite Industries, up 7.5%. Bajaj auto and L & T lost the most, down 1.6% and 1% respectively. BSE advance-decline ratio stood at 1.7:1.