RBI policy day ends well; Sensex up for 3rd day

Though markets witnessed a drop post RBI’s move, it gained momentum to close the trade on a positive note. The Sensex rose by 57 points and the Nifty surged by 9 points

Major headlines

RBI hikes repo rate by 25 basis points

ONGC surges as petrol prices rise

Tata Motors soars on rise in global sales

NTPC gains as a power unit starts commercial operation



Indian indices

Indian markets pulled back after a knee-jerk reaction to Reserve Bank of India's move to raise key policy rates by 25 basis points. The hike was in line with the market expectations. Buying in PSU, power, realty, auto, consumer durables and banking stocks were supporting the markets alongwith positive European cues. Sustained gains in Tata Motors, ONGC, SBI, NTPC, L&T and ICICI Bank kept markets higher. The markets extended gains for the third day and ended higher in a volatile session.

Sensex movements: The Sensex went up by 171 points at 17048 in the opening trade and remained strong till the announcement of the RBI policy. As soon as the RBI Policy was declared, the Sensex hit day's high of 17123 and low of 16890 at the same time. The rate hike impact was limited as the index rose again to close positive. The Sensex shut shop at 16934, up by 57 points and the Nifty rose 9 points to close at 5084.

Market sentiment

The market breadth stood in favour of declines. Of the 2,931 stocks traded on the BSE,
1,337 rose (45.62%), 1,460 declined (49.81%) and 134 (4.57%) closed
unchanged.

Viewing volumes

Indian shipbuilder Pipavav Shipyard witnessed highest trading, with over (0.48 crore
shares) changing hands on the BSE. India's largest automobile company - Tata Motors (0.42
crore shares), India's second largest developer - Unitech (0.39 crore shares), industrial finance company - IFCI (0.24 crore shares), and wind turbine major - Suzlon Energy (0.24 crore shares).

Sectoral & stock screening

Among the 13 sectors, ten closed the session on a positive note. BSE PSU was the top gainer
surging by 1.66%, followed by BSE Power up by 1.55% and BSE Realty up by 1.26%.
Remaining gaining sectors closed in the range of 0.22% - 1.14%. Losers - BSE FMCG lost by 1.22%, BSE IT down by 0.86% and BSE TeCk fell by 0.70%.

In 'A' group stocks, major gainers - Financial Technologies (India) up by 10.35%, Rajesh Exports rose by 8.42% and Tata Motors surged by 7.02%. Major losers - Motherson Sumi Systems down by 5.31%, Piramal Healthcare declined by 5.15% and Ambuja Cements
fell by 4.33%.

Global Indices:

The European stocks edged higher on Friday amid cautious hope that the meeting of European finance ministers in Poland may result in some more decisive action in tackling the European debt crisis.

Asian stocks ended higher on Friday, helped by news that top central banks will coordinate a plan to ease dollar funding for stricken European banks, reducing the threat of an emerging credit crunch.

The US stock index futures pointed to a weaker open for equities on Wall Street on Friday after strong gains in the previous session.

Market Outlook: In the US, Treasury International Capital and Consumer Sentiment will be out on Friday.