Markets break three-day losing run

A rebound in global equities and short covering led to a smart pull back in today’s trade. The Sensex rises 184 points and the Nifty gains 59 points

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Indian indices

Markets switched to positive mode in today’s trade tracking gains across the globe. China’s strong economic data lifted investor sentiment. Recovery was majorly led by short covering in banking, metal, telecom, auto, realty, oil & gas and select infrastructure companies' shares. The markets closed near crucial resistance levels, breaking three-day losing streak.

Sensex movements: The Sensex started the session at 18469, up by 57 and in no time touched the day’s low of 18465. The index traded in the green zone and extended gains to hit the day’s high of 18626 in last half hour of trade. The Sensex rose 184 points to settle at 18596 and the Nifty shut 59 points higher at 5585.

Market sentiment

The market breadth stood strong, with 1,859 shares rising and 1,012 shares declining and 139 shares traded unchanged.

Viewing volumes

India's second largest real estate developer - Unitech was traded the most, with over 0.41 crore shares changing hands on the BSE. It was followed by an integrated infrastructure development company - Lanco Infratech (0.27 crore shares), wind turbine major - Suzlon Energy (0.18 crore shares), one of India's largest providers of integrated communications services - Reliance Communications (0.17 crore shares) and the world's largest coal miner - Coal India (0.11 crore shares).

Sectoral & stock screening

All the sectoral indices ended in the positive territory except BSE Information Technology (IT) marginally down by 0.05%. BSE Consumer Durables (CD) was the major gainer, surging by 1.73%, following that BSE Oil & Gas up by 1.70% and BSE Realty up by 1.69%. Other sectors rallied in the range of 0.41-1.58%.

Coming to 'A' group stocks, Indiabulls Real Estate was the star performer, surging by 6.01%, then comes Sintex Industries up by 5.59% and United Phosphorus jumped 4.96%. Among losers, SKS Microfinance fell the most by 10%, followed by Motherson Sumi Systems down by 3.51% and Marico lost by 4.96%.

Global signals

The European markets were trading higher on Wednesday, after a better-than-expected Chinese gross domestic product reading, which helped appetite for risk return after recent losses.

The Asian markets closed on a positive note on Wednesday boosted by stronger then expected growth in China.

The US stock index futures point to a higher opening on the Wall Street on Wednesday.

Market Outlook: In the US, MBA Mortgage Applications and Ben Bernanke testimony will be in focus.