Strong pull back…Nifty ends above 5300

Finally, some relief for the Indian markets, after witnessing selling pressure for five consecutive days, the Indian markets snapped the losing streak as the benchmark indices staged a smart pull back in the second half of the trading session. Today’s rally was led by the Banking, Auto, Capital Goods and Realty stocks.

Even the broader indices participated in the upswing, infact the BSE Mid-Cap and the Small-Cap indices outperformed the index.



"Today’s rally was seen despite disappointing IIP data, India’s December IIP fell to 1.6% as compared to 2.7% in November. Hapless investors try in vain to interpret market movement, so will this recovery sustain? Technically, the Nifty has managed to breakout on the hourly charts, which suggests that the upswing may continue coming days, says Amar Ambani, Head of Research (India Private Clients) - IIFL.

The BSE Sensex rose 266 points to end at 17,728 and the NSE Nifty gained 84 points to close at 5,310.

Among the BSE sectoral indices, the BSE Banking index was the top gainer, the index gained 3.7%, BSE Auto index was up 3% and BSE Consumer Durables index was up 2.5%. Even the BSE Mid-Cap and the BSE Small-Cap index gained 3.2% and 3% respectively.

However, BSE IT and BSE Teck index modestly lost 0.2% each.

The European markets were trading in the red, the FTSE index was down 0.4%, CAC index was down 0.7% and DAX index was down 0.4%

Outside the frontline indices, the big gainers in the broader market were DB Realty, Nagarjuna Const, Jet Airways and CESC. On the other hand, losers included Nalco, Idea, Crompton Greaves and Indusind Bank.

Jaiprakash Associates, Reliance Infra, ICICI Bank, L&T, HDFC, Tata Motors, Bajaj Auto, SBI, NTPC, Sterlite Inds, M&M, IDFC, Kotak Bank, Axis Bank, PNB, Hero Honda, ONGC and RIL are leading in the Sensex and Nifty.

Hindalco Inds, Tata Power, Bharti Airtel, Hindustan Uniliver, Tata Steel, Bharti Airtel, HCL Tech, GAIL, ITC, Siemens and TCS are the notable losers in the Sensex and Nifty.