Fireworks on Dalal Street: Sensex skyrockets 516 points

Strong cues from global peers after the European Union leaders unveiled plans to resolve sovereign debt crisis led the Sensex to close 516 points and the Nifty 159 points up

Major headlines

NHPC hits monthly high after good Q2 results

Banking stocks gain on possible recapitalisation plan

Rupee touches 2-week high

Eros International announces stunning opening for Ra.One

Indian Hotels posts Q2 net profit at Rs8.12 crore



Indian indices

Today’s rally was led by optimism over an agreement by European leaders to help contain the region's two-year debt crisis and encouraging US economic data. It was a relief for markets which have remained under stress owing to uncertainty in Europe.

Investors remained upbeat after EU rescue deal, with buying interest seen across the board. Major gains came from metal, banking, realty, capital goods, auto, power and PSU stocks. Out of the 30 Sensex stocks, 27 were in the positive terrain, which further added support. The markets hit the 3-month high level in today’s trade.

Sensex movements: Buoyant global equities led the Sensex to open the trade 383 points higher at 17672 and immediately hit the intraday high at 17908. The index held on to its gains throughout the session. The Sensex closed with a big gap-up of 516 points at 17805 and the Nifty rose 159 points at 5361.

Market sentiment

All-round buying kept market breadth strong. Of the 2959 stocks traded on the BSE, 1728 (58.40%) rose, 1139 (38.49%) fell and 92 (3.11%) remained unchanged.

Viewing volumes

A Jaypee Group firm - Jaiprakash Associates was traded the most with over 0.36 crore share changing hands on the BSE. The comes, a government hydro power firm - NHPC (0.35 crore shares), an industrial finance company - IFCI (0.31 crore shares), India's largest automobile company – Tata Motors (0.29 crore shares) and world's largest aluminium manufacturing company - Hindalco Industries (0.27 crore shares).

Sectoral & stock screening

All the 13 sectoral indices stood higher. Top three performers — BSE Metal shot up by 3.34%, BSE Realty gained by 5.34% and BSE Bankex rose by 3.73%.

Among ‘A’ Group stocks, three major gainers — Hindalco Industries up by 10.88%, JSW Steel up by 9.94% and Reliance Infra up by 9.65%. Three top losers — Indiabulls Financial Services down by 4.41%, BPCL down by 2.88% and Gitanjali Gems down by 2.61%.

Global indices

The European stock markets traded slightly lower on Friday (October 28, 2011), as market participants paused for breath after Thursday's rally sparked by European leaders finally agreeing on a plan to stem the debt crisis.

The Asian stocks rose on Friday, sending the regional benchmark index toward its biggest weekly gain in more than two years, as the fastest US economic growth in a year and Europe’s debt deal boosted the outlook for exporters.

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

Market Outlook: Personal Income & Outlays, Employment Cost Index, Consumer Sentiment will be out in the US on Friday.