Sensex surges 473 points on global optimism

Indian indices

It was a strong pullback rally after four-day fall following robust gains on global front. Investors were in buoyant mood today on hopes that European Finance Ministers would take strong steps to tackle Greece’s debt crisis. Buying interest was seen across the board, which kept the markets strong all throughout the day amid global optimism. Gains in the ADAG pack and index heavyweights like RIL, SBI, TCS, Infosys, ICICI Bank, JP Associates and HDFC also led the upmove.

Sensex movements: Global rally pushed the Sensex 238 points higher at 16289 in the opening trade. Then the index gathered pace and maintained its uptrend on good buying interest and positive global cues. In the last half hour of trade, buying intensified across the board and strong gains in the European stocks led the index to touch the day’s high of 16552 . The Sensex jumped 473 points to close at 16524 and the Nifty gained 136 points to settle at 4971.



Market sentiment:

The market breadth stood healthy. Of the 2933 stocks traded on the BSE, 1873 (63.86%) rose, 952 (32.46%) fell and 108 (3.68%) remained unchanged.

Sectoral & stock screening

All the sectors closed strong. BSE Realty was the star performer rising by 4.66% followed by BSE IT up by 3.56% and BSE Oil & Gas advanced by 3.47%. Remaining sectors rose in the range of 0.65-3.02%.

On 'A' group stocks’ front, top performers - DLF shot up by 8.46%, Rajesh Exports surged by 7.07% and Japee Infratech rose by 6.06%. Top laggards - Pipavav Shipyard slipped by 4.42%, Sun TV Network dropped by 2.82% and Manappuram Finance slid by 2.07%.

Viewing volumes

A Jaypee Group firm - Jaiprakash Associates was traded the most with over 0.33 crore shares changing hands on the BSE. Following that one of India's leading and most valuable financial services companies in the private sector - Reliance Capital (0.28 crore shares), India's second largest developer - Unitech (0.24 crore shares), industrial finance company - IFCI (0.24 crore shares) and Indian shipbuilder - Pipavav Shipyard (0.24 crore shares).

Global Indices:

The European shares climbed to their highest in nearly a week on Tuesday on renewed hope that European policymakers will act to contain Greece's debt problems and resolve a regional debt crisis threatening to derail the world economy.

The Asian stocks closed with strong gains on Tuesday amid optimism that European leaders are closer to agreeing on ways to tame the region's credit crisis.

The US stock index futures pointed to a higher open on the Wall Street on Tuesday.

Market Outlook: In the US, Consumer Confidence and S&P Case-Shiller HPI data will be declared on Tuesday.