Central banks’ move spur rally; Sensex ends 360 pts higher

Today’s big rally was led by optimism in the global indices on liquidity moves by central banks and China’s credit easing. The Sensex rose 360 points and the Nifty surged 105 points

Headlines of the day

Exports surge 10.8% in October

Food inflation at 8% versus 9.01%

India's manufacturing PMI falls to 51.0 in November

M&M posts 53% rise in sales in November

India Securities consolidated FY11 net loss at Rs714.45 cr



Indian indices

What an astonishing start to December! The sentiments were buoyed after the world's major central banks — ECB, US Fed, as well as central banks of Canada, Japan, Britain and Switzerland — moved to tame a liquidity crunch for European banks by providing cheaper dollar funding. China cuts reserve ratio by 50 bps also boosted sentiments. Today’s big rally was led by optimism in the global indices.

Investors were on a buying spree tracking worldwide rally, which kept the markets strong all throughout the day. The markets had touched its highest level in two weeks.

However at the closing, the key indices erased some of its gains due to some profit booking and unsupportive European cues.

Sensex movements: The Sensex started the first session of December on a healthy note, up by 432 points at 16556 and suddenly touched an intraday high of 16718. The index maintained its uptrend whole day on strong buying and global rally. The Sensex closed 360 points higher at 16483 and the Nifty had touched the 5000 mark today but closed at 4937, up by 105 points.

Market sentiment

The market breadth stood in favour of advances. Of the 2920 stocks traded on the BSE, 1689 (57.84%) rose, 1114 (38.15%) fell and 117 (4.01%) were unchanged.

Viewing volumes

Wind turbine major – Suzlon Energy was traded the most with over 0.52 crore shares changing hands on the BSE. Following that, sugar making company - Shree Renuka Sugars (0.32 crore shares), India's largest automobile company - Tata Motors (0.28 crore shares), India's largest real estate company - HDIL (0.26 crore shares) and India's leading retailer - Pantaloon Retail (0.23 crore shares).

Sectoral & stock screening

All the sectors were in green zone except BSE HC fell by 0.32%. Top Gainers - BSE Metal up by 4.14%, BSE Bankex up by 3.72% and BSE Realty up by 3.54%.

In 'A' group stocks, major gainers — Hindalco Industries up by 6.97%, ICICI Bank up by 6.76% and Pantaloon up by 6.38%. Top losers — Idea Cellular down by 5.53%, Mphasis down by 3.08% and Asian Paints down by 2.83%.

Global Indices:

The European stocks were mixed on Thursday (December 01, 2011) after comments by European Central Bank President Mario Draghi were laced with caution, tempering the positive sentiment following Wednesday's coordinated liquidity moves by central banks.

The Asian stock markets rose on Thursday, after the world's central banks took coordinated action to ease funding strains among banks caused by the debt crisis in Europe.

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

Market Outlook: Data releases in the US on Thursday — Jobless Claims, ISM Manufacturing Index, Motor Vehicle Sales and Construction Spending.