Markets up for 8th day on last day of FY11

Markets head upwards for the eight consecutive day and close the last session of the FY11 on a strong note amid volatile trade

Major headlines

Food inflation softens to 9.5% versus 10.05%

Tata Tele soars as Docomo plans investment

High Court refuses to stay MoEF order; HCC falls 4%



Indian indices

Markets ended the last session of the FY11 and March F&O expiry day on a strong note, extending their rising trend for the eighth day in row. The markets turned extremely volatile and erased most of its gains owing to selling pressure in banking and pharma stocks. However, buying in technology, FMCG and oil & gas stocks helped the markets. The strong inflow of funds from foreign institutional investors was providing major support to the markets. Easing of food inflation also boosted the sentiments.

The Sensex started the session higher by 50 points at 19340 and extended gains to touch the day’s high of 19575 in the early afternoon trade. From that level. the index began to erase gains and turned volatile to hit the day’s low of 19284 in the afternoon session. The Sensex stood at 19445, rose by 155 points and the Nifty settled at 5834, up by 46 points.

Market sentiment

The market breadth was neutral. Of the 2,951 stocks traded on the BSE, 1,444 rose while 1,412 fell. However, 95 stocks remained unchanged.

Viewing volumes

India's second largest real estate developer - Unitech was traded the most, with over 0.54 crore shares changing hands on the BSE. It was followed by realty major - D B Realty (0.47 crore shares), India's largest public sector hydroelectric power producer - NHPC (0.36 crore shares), industrial finance company - IFCI (0.36 crore shares) and wind turbine major - Suzlon Energy (0.35 crore shares).

Sectoral & stock screening

Nine sectors closed higher, while four closed lower. The gainers were — BSE Information Technology (IT) surged by 1.92%, BSE Fast Moving Consumer Goods (FMCG) rose by 1.67% and BSE Oil & Gas advanced by 1.44%. The losers were - BSE Bankex dropped by 0.70%, BSE Healthcare (HC) down by 0.35% and BSE Consumer Durables (CD) declined by 0.22%

On 'A' group stocks’ front, top three gainers were - Procter & Gamble rose by 6.33%, Jubilant Life Sciences surged by 5.13% and Adani Enterprises advanced by 4.98%. Top three losers were - IndusInd Bank slipped by 4.87%, Jet Air India declined by 4.79% and Hindustan Construction Company declined by 3.58%.

Global signals

The European markets declined on Thursday as investors traded cautiously ahead of the Irish bank stress tests results, with banking stocks reversing earlier gains.

The Asian indices closed higher except Shanghal Composite ended 0.88% lower. Chinese stocks fell on renewed concern about further monetary-policy tightening by the country's central bank.

The US stock index futures point to a subdued opening on the Wall Street on Thursday.

Market Outlook: Data releases in the US — Factory Orders for February and Weekly Jobless Claims.