IT pack helps Sensex regain 17K; Markets end 2% higher

The Indian markets closed on an upbeat note led by tremendous rally in IT stocks and recovery in global sentiments. The Sensex rose 354 points and the Nifty advanced 108 points.

Major headlines

IT stocks top market chart on weak rupee

CBI may file case against RIL

Europe’s debt crisis worsens, puts pressure on rupee

Everonn Education shoots up on preferential issue



Indian Indices

It was quite surprising to see markets showing strength amid concerns over euro zone debt crisis and S&P cutting Italy’s credit rating by one notch to A/A-1. Today, IT stocks were the prime drivers pushing the markets higher. Strong gains in the European shares also led the upmove. The markets remained buoyant all throughout the day on buying across the board and closed on a healthy note, after a decline in the previous session.

Sensex movements: The Sensex opened the session 23 points higher at 16769 and immediately hit the day’s low of 16759. Then the index moved upwards, ext ending gains and did not look back. In late trade, strong European cues and heavy buying in technology, consumer durables, banking and metal shares led the index to hit the day’s high of 17135. The Sensex closed the trade 354 points higher at 17099 and the Nifty surged 108 points at 5140.

Market sentiment:

The market breadth was extremely strong. Of the 2916 stocks traded on the BSE, 1849 (63.41%) advanced, 937 (32.13%) fell and 130 (4.46%) remained unchanged.

Viewing volumes

India's second largest developer - Unitech was traded the most with over 0.38 crore shares changing hands on the BSE. Following that a unit of infrastructure major GVK Group - GVK Power & Infrastructure (0.31 crore shares), Indian shipbuilder - Pipavav Shipyard (0.28 crore shares), a Jaypee Group firm - JP Associates (0.26 crore shares) and Indian telecommunication company - Reliance Communications (0.24 crore shares).

Sectoral & stock screening

It was all in green on the sectoral front. BSE IT was the best performer rising by 3.23%, followed by BSE TECk up by 2.79% and BSE CD up by 2.74%. Remaining sectors closed higher in the range of 0.28% to 2.31%.

In 'A' group stocks, major gainers - Rajesh Exports up by 12.58%, Religare Enterprises rose by 6.27% and Cairn India surged by 5%. Major losers - United Spirits down by 3.46%, Sterling International Enterprises down by 3.38% and ONGC fell by 2.86%.

Global Indices:

The European stock markets edged higher on Tuesday, shrugging off Standard & Poor's overnight downgrade of Italy's credit rating. Instead, investors picked up recently battered stocks ahead of the second leg of Greek aid talks with international lenders later in the global day.

The Asian stock markets closed on a mixed note on Tuesday. Investors remained cautious after Standard & Poor's cut Italy's debt rating, raising more worries about the global impact of continued financial turmoil in the euro zone, though expectations of stimulus from the US Federal Reserve cushioned the blow.

The US stock index futures pointed to a mixed open on the Wall Street on Tuesday. The Federal Open Market Committee begins a two-day meeting on interest rate policy. The Fed is expected to try to push already low long-term interest rates even lower this week by tilting toward longer-duration bonds in its portfolio.