Sensex zooms 277 points on global optimism

Bulls stood strong all throughout the day, with the Indian markets keeping its head high on account of all-round buying and positive global cues.

Major headlines

Maruti Suzuki hikes vehicle prices

RCom to refinance outstanding bonds worth $1.18 bn

Tata Motors rises on strong global sales

Chambal Fertilisers tumbles on net loss in Q3

HCL Tech zooms after good Q2 numbers



Indian Indices

Today’s big rally was led by healthy global cues, after data showed the Chinese economy grew at a faster-than-expected pace in the fourth quarter of 2011.Investors cheered encouraging data, with buying interest seen across the board. China GDP growth came in at 2.5-year low but topped earlier forecast.

Major gains came from capital goods, metal, realty, oil & gas and auto. Out of the 30 Sensex stocks, 24 were in the positive terrain, which added support. Further the support also came from the positive European equities, as better-than-expected growth data from China allayed concerns that the Asian economy may be headed for a hard landing.

Sensex movements

Tracking positive Global cues the Sensex opened the session up by 82 points at 16271 as compared with its previous close of 16,189. The index maintained its uptrend and extended gains as the session progressed. Further, positive European cues and all-round buying led the Sensex to touch an intraday high of 16,501 in the afternoon session. The Sensex rose 277 points to close at 16466 and the Nifty settled at 4967, up by 93 points.

Market sentiment:

The market breadth stood in favour of advances. Of the 2985 stocks traded on the BSE, 1907 (63.89%) rose, 975 (32.66%) fell and 103 (3.45%) stocks remained unchanged.

Viewing volumes:

Wind turbine major - Suzlon Energy was traded the most, with over 0.63 crore shares changing hands on the BSE. Sugar making company - Shree Renuka Sugars (0.45 crore shares), An integrated infrastructure development company - Lanco Infratech (0.41 crore shares), Industrial finance company - IFCI (0.36 crore shares), a real estate development company - HDIL (0.36 crore shares).

Sectoral & stock screening:

All the 13 sectoral indices closed in positive. BSE CG up by 3.73%, BSE Metal surged by 3.66%. BSE Realty rose by 3.46%. Remaining ten indices advanced in the range of 0.63-2.79%.

Among 'A' group stocks, top three gainers were- Maruti Suzuki India rose by 10.48%, Jet Airways (India) surged by 10.20% and HDIL up by 7.28%. Top three losers were- Essar Oil down by 7.85%, Dish TV India fell by 4.12%, and Chambal Fertilisers & Chemicals declined by 3.98%.

Global signals

The European shares rose on Tuesday (January 17, 2011) extending the previous session's gains, as investors shrug off the downgrade of EFSF and turned the focus on a draft of data released from China. A data earlier showed China's gross domestic product growth slowed slightly in the fourth quarter to 8.9%, but surpassed market expectations of 8.6%. Industrial output growth in the world’s second largest economy during December also accelerated to 12.8% from a year earlier, above 12.4% growth in November.

The Asian stock markets closed higher on Tuesday after better-than-expected Chinese economic data and solid demand at a French treasury bill auction reassured investors in the wake of European debt downgrades.

The Stock index futures pointed to a higher opening for equities on Wall Street on Tuesday.

Market Outlook:

Data to be released in the US on Tuesday - Empire State Manufacturing Survey.