Sensex surges on global recovery...Nifty above 5100

After a couple of reckless trading sessions, equity markets across the globe saw some sanity, tracking a rally in US stocks that rose post the Fed’s assurance that it will keep rates at record low till at least the middle of 2013. Asian markets ended with smart gains, while the European markets too were trading with a positive bias.

The Indian markets saw some bottom fishing after 11 straight trading sessions. The interest rate sensitive Auto and Realty stocks led from the front. Index heavyweights like Tata Motors, Maruti, M&M and Bajaj Auto were among the major winners today. Among the other top gainers were in the Consumer Durables, Banking and Capital Goods space.



Tata Motors, Maruti, DLF, Hindalco, M&M, J P Associat, HDFC Bank, Axis Bank, Bajaj Auto, Infosys, IDFC, NTPC, L&T, ICICI Bank, Cipla and Reliance Comm were among the top gainers.

While, Grasim, ONGC, ITC, Cairn, Ranbaxy, Hindustan Unilever, Sun Pharma, GAIL, Dr Reddy, Tata Power, Tata Steel, Reliance Capital, Reliance Power, Siemens and Bharti Airtel are among the laggards.

The Mid-Cap and Small-Cap stocks outperformed the benchmark indices. The BSE Mid-Cap index gained 2.3% while the BSE small-Cap index added 2.4%.

Finally, the BSE Sensex ended at 17,130 gaining 272 points. It had earlier touched a day's high of 17,256 and a day's low of 17,022. It opened at 17,244. The NSE Nifty closed at 5,161 adding 88 points.

"From here on, much will hinge on the upcoming data points from the US, Eurozone and other important parts of the world. Any policy action (local or/and global) to perk up sentiment may also come in handy. For India, the key catalysts could be sharply lower commodity prices, particularly that of crude oil. There may also be some relief on fuel prices if crude stays low.

Having said that, one must navigate the next few days and weeks carefully, as markets consolidate post the recent drubbing. Fund flows will also be important for India and so will be Friday’s IIP data, says Amar Ambani, Head of Research, IIFL - India Private Clients.