Markets rise for 2nd day; Sensex up 76 points

Markets extended previous session’s advance with the support coming in from realty, oil & gas and IT stocks coupled with firmer European indices

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Indian indices

After trading in a directionless manner for most part of the session, the Indian markets managed to negotiate a close in the green zone. Investors showed good buying interest in realty, oil & gas, technology and pharma stocks, which lifted the key indices alongwith major support from RIL and Infosys. Positive European cues also led the Indian markets to rise. Overall it was a volatile day, with the markets seen waiting for some trigger like RBI policy or any global event. It was a second straight day gain for markets.

The Sensex fell 65 points at 18355 in the opening trade and suddenly hit the day’s low of 18351. The index moved in the positive and negative terrain as the session progressed. Support from realty and IT shares pulled the Sensex higher in the second part of trade to hit the day’s high of 18546. The Sensex rose 76 points to settle at 18496 and the Nifty stood at 5556, up by 24 points.

Bond and Rupee update

India’s 10-year bonds advanced, pushing yields to the lowest level in three weeks, on
speculation that slowing economic growth will curb inflation and make interest-rate increases less likely.

India’s rupee gained for a ninth day after international investors increased holdings of local shares by the most in more than a month to benefit from the nation’s relatively fast economic growth.

Market sentiment

The market breadth was in favour of advances, with 1533 shares rising, 1256 shares declining and 121 shares traded unchanged.

Viewing volumes

India's largest media conglomerate - Sun TV Network was traded the most, with over 0.27 crore shares changing hands on the BSE, followed by India's second largest developer - Unitech (0.26 crore shares), wind turbine major - Suzlon Energy (0.24 crore shares), one of India's largest real estate companies - HDIL (0.20 crore shares) and India's Number 2 mobile carrier - Reliance Communications (0.17 crore shares).

Sectoral & stock screening

All the sectoral indices closed higher except BSE CG down by 0.48% and BSE FMCG down by 0.16%. BSE Realty was the top gainer, up by 1.64%, following that BSE Oil & Gas rose by 1.28% and BSE IT surged by 1.24%

Top gainers in 'A' group pack - Bajaj Finserv rose by 8.85%, HDIL gained by 5.87% and Sterling International Enterprises shot up by 4.99%. Top losers in 'A' group pack - Manappuram General Finance & Leasing went down by 3.86%, Pantaloon Retail fell by 3.17% and National Fertilizers lost by 2.57%.

Global signals

The European shares surged on Tuesday, with miners among the gainers and German utility E.ON up after bullish comment from UBS.

The Asian indices ended mixed on Tuesday. Nikkei rose by 0.67%, Straits Times up by 0.07% while Hang Seng fell by 0.35% and Seoul Composite down by 0.65%.

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