Sensex shoots past 18k...Nifty ends above 5400

The Indian equities galloped on Friday, with the BSE Sensex surging by over 500 points and the NSE Nifty cracking a solid century. The Sensex closed above 18,000, while the Nifty is within striking distance of 5500.

Although the Large-Cap shares paced the rise today, the non-index stocks too joined the party after being subdued over the past few sessions. As a result, the market breadth was very strong.

Another heartening aspect of the rally was that the traded volumes and turnover both improved substantially compared to the lackluster trading seen in the recent history.



The BSE Sensex ended at 18,240, up 513 points or ~2.9% over the previous close. It had earlier touched a day's high of 18,268 after opening at the day's low of 17,804.

The NSE Nifty closed at 5,471, up 151 points over the previous close. It had earlier touched a day's high of 5,477 after opening at the day's low of 5,343.

The BSE Small Cap index and the BSE Mid Cap index were up 1.8% and 2.2%, respectively.

The Indian shares advanced smartly on the back of strong gains registered by other Asian markets and a positive opening for the European markets. Sentiment in Asia was spurred by the late recovery on Wall Street and a steep drop in oil prices overnight.

Also, reports of Greece and EU officials having reached an agreement on the new budget cuts for the indebted eurozone nation also partly fueled the gains across risky asset classes.

One can also attribute part of today's rally to some short covering. Traders who were bearish on the market were forced to cover their shorts after the Nifty surpassed 5350.

"A strong bout of short-covering, coupled with a world-wide relief rally lifted the spirits in the Indian markets today, helping the main indices close the week on a high. Thanks to Friday's fantastic rally, the Sensex and Nifty actually ended up gaining ~2% each on the week after starting the week on a really sour note," said Amar Ambani, Head of Research, IIFL - India Private Clients.

"All eyes will be on the EGoM on fuel prices, which is scheduled to take place later this evening. Any hike in diesel and LPG prices will be well received by the markets. On the flip side, any move contrary to market expectations could be disappointing," he added.

"Next week will be action-packed with an added dose of volatility due to the F&O expiry. With July 1st falling on the last trading day, the markets will also closely watch data on auto and cement sales, besides economic statistics on trade and manufacturing," Ambani said.

"At the same time, global events will continue to have some bearing on local sentiment. Greece and the US economy will remain in focus. Chinese manufacturing PMI data will also be on the investors' radar," he added.

Realty, Metals, IT, Capital Goods, Banking and Auto indices on the BSE gained 3% or more. PSU and Power indexes rose by 2-3%. FMCG, Pharma and Oil & Gas indices were up 1-2%.

The Consumer Durable index on the BSE was down 2.2%, mainly due to weakness in index heavyweight Titan Industries. The stock had risen yesterday despite going ex-bonus and ex-stock split.

Titan's Board had approved a plan to issue 1 bonus share for every 1 share held. It also decided to split the stock from every 1 share of Rs. 10 each into 10 shares of Re 1 each.

Shares of public sector oil marketing companies (OMCs) advanced on reports that the EGoM on fuel prices will meet today to mull hike in diesel and LPG prices.

A fall in crude oil prices is also supporting these stocks.

The EGoM meet on Friday could also consider changes in duties on crude and petroleum products to cushion the blow to the consumers.

Shares of sugar companies rose after a high-powered committee of cabinet ministers allowed exports of an additional 5 lakh tonnes of sugar. With this approval, the Government has allowed one million tonnes of sugar exports since April.

Shares of Jet Airways, Kingfisher Airlines and Spicejet gained after crude oil prices fell sharply on Thursday, stoking speculation that lower fuel costs will boost profits for the carriers.

They also rose after reports pointed to a strong traffic growth during the January to May period and improvement in the load factors.