Markets participate in global rally; Sensex up 117 pts

Today's rally is driven by some relief on the US' debt worries, with the Sensex snapping four-day fall to close the trade 117 points higher

Major headlines

Exports rise 46.45% to $29.21 billion in June

M&M auto sales up 41% in July

India’s GDP to grow by 8.2% in FY12: PMEAC



Indian indices

The Indian markets broke its four-day losing run, cheering the US lawmakers' move to raise the country's debt ceiling and avoid a default. The US debt deal approval led to some relief among investors. Fresh buying in technology, auto, realty and banking shares lifted the markets.
Heavy selling in the metal space on the back of weak economic data from China and allegations of illegal iron-ore mining in Karnataka contributed to the market's fall from higher levels.

Sensex movements: Good Asian cues lifted the Sensex by 155 points higher at 18352 in the opening trade and immediately hit the day’s high of 18440. Later, the index began to trim gains and hit the day’s low of 18352 in the afternoon session on weakness in the metal pack. The Sensex closed 117 points higher at 18314 and the Nifty stood at 5517, up by 35 points.

Market sentiment

The market breadth stood negative. Out of the 2975 shares traded on the BSE, 1204 shares rose, 1646 shares declined and 125 shares remained unchanged.

Viewing volumes

Wind turbine major - Suzlon Energy was traded the most with over 0.57 crore shares changing hands on the BSE. Following that a large Indian business conglomerate - Lanco Infratech (0.34 crore shares), India's second largest developer - Unitech (0.30 crore shares), one of the leading integrated steel makers - Ispat Industries (0.29 crore shares) and India's third largest mobile operator - Idea Cellular (0.25 crore shares).

Sectoral & stock screening

Out of the 13 sectors, ten closed higher. Top gainers - BSE IT rose by 0.86%, BSE TECk went up by 0.81% and BSE Auto surged by 0.79%. Only three losers - BSE Metal lost by 1.25%, BSE CD fell by 0.30% and BSE FMCG declined by 0.11%.

Top three gainers in ‘A’ group pack - Adani Enterprises shot up by 8.82%, Manappuram Finance gained by 6.99% and Mahindra & Mahindra Financial Services jumped 5.56%. Top three losers in ‘A’ group pack - JSW Steel tumbled by 10.26%, NALCO dropped by 5.56% and Bharat Forge slid by 5.50%.

Global signals

The European stocks were higher on Monday as US senate leaders reached an agreement to lift the federal debt ceiling, just a hair's breadth away from the August 2 deadline, easing concerns of a possible credit default by the world's largest economy.

The Asian markets ended the session on a positive note on US debt deal.

The US stock index futures signal higher opening on the Wall Street on Monday on relief over a deal in Washington to raise the debt ceiling, avoiding an unprecedented default.

Market Outlook: US ISM Manufacturing Index will be out on Monday.