Markets extend rally for 3rd day

Rise in European stocks and recovery in RIL, ICICI Bank led the markets to close higher. The Sensex rose by 101 points and the Nifty surged by 29 points.

Major headlines

Food inflation at 9.55% versus 10.05%

CAG report on gas fields tabled, RIL violated contract

IT stocks strengthen on weak rupee

Reliance Communications secures order from HDFC Bank



Indian indices

The Indian markets extended its rising trend for the third consecutive day led by a rebound in heavyweights like Reliance Industries Ltd ( RIL), ICICI Bank and recovery in European shares. Other heavyweights supporting the markets were Wipro, Infosys, L&T, M&M, TCS, Tata Motors. Buying interest in technology shares also aided the rally. The markets touched their highest level in nearly 4 weeks.

Sentiments turned bullish in global markets ahead of European Central Bank & Bank of England meet as well as Obama speech.

Sensex movements: The Sensex opened 53 points higher at 17118 and drifted lower to hit the day’s low of 16987 in early trade. The Sensex swung between gains and losses for most part of the day. In the afternoon session, support from RIL and ICICI Bank alongwith positive European cues lifted the Sensex to touch the day’s high of 17210. The Sensex stood at 17166, up by 101 points and the Nifty rose by 29 points to close at 5153.

Market sentiment:

The market breadth was positive. Of the 2945 stocks traded on the BSE, 1733 (58.85%) gained, 1099 (37.32%) fell and 113 (3.84%) remained unchanged.

Sectoral & stock screening

Among 13 sectoral indices, nine closed higher. Gainers - BSE CD stood the best performer, surging by 1.99% followed by BSE IT up by 1.52% and BSE Oil & Gas advanced by 1.42%. Remaining gainers advanced in the range of 0.34-1%. The only four losers - BSE Metal dipped by 0.69%, BSE PSU declined by 0.28%, BSE FMCG slid by 0.27% and BSE Power fell by 0.23%.

In 'A' group stocks, Gujarat State Petronet rose by 5.58%, Chambal Fertilisers & Chemicals surged by 5.23% and SKS Microfinance up by 5%. On the flip side, HPCL down by 4.56%, Motherson Sumi Systems fell by 4.16% and Jubilant Foodworks declined by 3.12%.

Viewing volumes

India's second largest developer Unitech was traded the most, with over 0.63 crore shares changing hands on the BSE. Then comes: wind turbine major - Suzlon Energy (0.37 crore shares), an integrated infrastructure development company - Lanco Infratech (0.35 crore shares), a Jaypee Group firm - Jaiprakash Associates (0.29 crore shares) and industrial finance company - IFCI (0.25 crore shares).

Global Indices:

The European stocks rose on Thursday, supported by strength in the retail sector, ahead of some key economic data, including a rate decision from the European Central Bank.

The Asian markets closed mostly higher on Thursday except Hang Seng and Shanghai Composite.

The US stock index futures pointed to a firmer open on the Wall Street on Thursday

Market Outlook: In the US, International Trade and Weekly Jobless Claims will be released on Thursday.