Market plays well on RBI’s move; Sensex up 244 points

The Indian markets cheered the RBI’s move and closed the trade at more than 2-month high on heavy volumes. The Sensex advanced 244 points and the Nifty up 81 points.

Headlines for the day

RBI cuts CRR by 50 bps, leaves policy rates unchanged

Strides Arcolab hits 52-week high on stake sale in unit

Yes Bank Q3 net profit up by 33%

Lupin Q3 consolidated net profit marginally up



Indian indices

The Indian markets showed strength after the announcement of the Reserve Bank of India’s Third Quarter Monetary Policy. The RBI’s move boosted investor confidence in the market, with buying interest seen across the board. Banking shares were leading the markets higher. The Sensex hit the 17000 mark and the Nifty went above 5100 level.

Negative European cues were discounted by the markets. Volume was very high after the release of RBI policy and total traded turnover was more than Rs2 lakh crore which was highest in January. The markets closed the trade at more than 2-month high.

Sensex movement: The Sensex started the trade 55 points higher at 16807 and traded volatile ahead of RBI policy. After the announcement of RBI policy, the index gained momentum and hit an intraday high of 17050 in the early afternoon session. The Sensex rose by 244 points to settle at 16996 and the Nifty closed 81 points higher at 5127.

Market sentiment:

The market breadth stood in favour of advances. Of the 2940 stocks traded on the BSE, 1592 (54.15%) rose, 1206 (41.02%) fell and 142 (4.83%) remained unchanged.

Viewing volumes:

Wind turbine major - Suzlon Energy was traded the most, with over 0.81 crore shares changing hands on the BSE. Following that, industrial finance company – IFCI (0.75 crore shares), largest single location flat steel producer in India — Essar Oil (0.72 crore shares), an integrated infrastructure development company — Lanco Infratech (0.47 crore shares) and a real estate development company — HDIL (0.45 crore shares).

Sectoral & stock screening:

All the 13 sectoral indices closed in positive. Top gainers — BSE CG rose by 3.30%, BSE Bankex surged by 3.21% and BSE Metal advanced by 1.78%. Remaining ten were up in the range of 0.12-1.53%.

Among 'A' group stocks, top three gainers — Essar Oil advanced by 16.53%, JSW Energy rose by 11.29% and Canara Bank up by 9.60%. Top three losers — United Spirits down by 3.85%, Pidilite Industries declined by 3.58% and Dish TV India fell by 2.47%.

Global indices:

The European shares declined on Tuesday (January 24, 2012), as worries about a messy Greek default increased after debt talks stumbled again, while weak results from Siemens and KPN also weighed.

Japan’s Nikkei index hit its highest closing level in nearly three months on Tuesday on expectations that a Greek debt swap deal will still be reached even after European finance ministers rejected an offer by Greece's private creditors. Most of the Asian indices remained shut.

The US stock index futures pointed to a lower open for equities on the Wall Street on Tuesday.