Markets celebrate V-day; Sensex ends 474 pts up

The Indian markets rejoice on the Valentines Day, with the Sensex closing 474 points higher on all-round buying and buoyant global cues

Major headlines

Inflation eases to 8.23% in January

Reliance Infrastructure Q3 consolidated net profit surges 10% yoy

Tata Power Q3 consolidated net profit rises over four-fold



Indian indices

It was a lovely day on the Dalal Street, with the key benchmark indices climbing higher all throughout the day. The markets carried the Friday’s rally in today’s trade with strong support from the global frontiers owing to easing concerns in Egypt. The Nifty closed above the 5400 mark for the first time in the last eight sessions on account of buying in all sectors. The Sensex too closed above the 18000 mark. A marginal dip in inflation for the month of January 2011 to 8.23% versus 8.43% seen in the month of December 2010 also boosted sentiments. It was a solid session as the markets gained the most in nine months.

Larsen & Toubro was the biggest contributor, rallying by 6.7%. ICICI Bank and Infosys Technologies also contributed handsomely. Jaiprakash Associates zoomed 7%. Tata Motors jumped 5.6% on robust Q3 earnings.

BHEL, Jindal Steel, State Bank of India and Tata Steel gained 4% each. Hindalco Industries, Hero Honda Motors, Tata Power, Housing Development Finance Corporation and Bajaj Auto were up 3% each. However, DLF was the only Sensex stock that ended session with marginally losses.

The Sensex started the session on a strong note at 17940, higher by 211 points taking lead from the buoyant global markets and immediately hit the day’s low of 17857. From day’s low, the Sensex climbed higher and extended gains as the session progressed. Continuing its northward journey, the Sensex hit the day’s high of 18228 in late trade on massive buying in all sectors.

The Sensex rises 474 points higher to close at 18202 and the Nifty ends 146 points up, at 5456.

Market sentiment

The market breadth was very much solid. Of the 3,003 stocks on the BSE, 2,397 (79.82%) rose while 483 (16.08%) fell. Whereas 123 (4.10%) stocks traded unchanged.

Viewing volumes

India's second largest developer - Unitech was traded the most, with over 0.95 crore shares changing hands on the BSE. Following that India's Number 2 mobile carrier - Reliance Communications (0.56 crore shares), wind turbine major - Suzlon Energy (0.44 crore shares), industrial finance company - IFCI (0.27 crore shares) and Jaypee Group firm - Jaiprakash Associates (0.26 crore shares).

Sectoral & stock screening

It was all in green on the sectoral indices’ front. BSE Capital Goods was the top performer, up by 5.26%, followed by BSE Auto, BSE Metal, BSE Consumer Durables (CD), BSE Bankex and BSE Power up more than 3% each. Rest of the sectors closed in the range of 0.97-2.79% higher.

In 'A' group stocks, the star stock of the day was United Spirits that rose by 14.76%, followed by National Fertilizers up by 12.97% and TVS Motor Company gained by 10.70%. Among the losers, Godrej Consumer Products fell by 0.64%, followed by Sintex Industries down by 0.46% and Siemens lost by 0.42%.

Global signals

European shares rose to a 29-month high as talk of slower-than-expected Chinese inflation data and strong China trade figures boosted market sentiment.

All the major Asian indices ended the session in the positive territory. China’s Shanghai Composite surged over 2%.

The US stock index futures point to a mixed opening on the Wall Street.

Market outlook: US NAHB Housing Market data will be announced tonight.