Broadbased recovery…Nifty above 5600 for 2nd day

Finally, the Indian stock market has broken away from the one day up, one day down sequence. The benchmarks have eventually managed to extend its gains for the second consecutive trading session. Markets ended almost near day’s high as participants cheered the PMI data. The HSBC India Manufacturing Purchasing Managers' Index (PMI) a measure of factory production stood at 52.9 in October slightly up from September, when it was 52.8. The upswing was led by a broad based recovery in sectors across the board. The Consumer Durables index, up 5.5% followed by BSE Auto index up 2.2%, BSE Realty index up 1.8%, BSE Power index up 1% and BSE Pharma index up 0.9%. Even the Mid-Cap and the Small-Cap index ended with smart gains, up 0.8% each. On the other hand, BSE FMCG index was the top loser, down 0.9% and BSE Oil & Gas index slightly ended lower by 0.3%. Finally, the BSE Sensex closed 18561, up 56 points over the previous close. It had earlier touched a day's high of 18589 and a day's low of 18445. It opened at 18487. The NSE Nifty ended at 5,645, up 25 points over the previous close. It earlier touched a day’s high of 5,649 and a day’s low of 5,601. It opened at 5,609. RIL, Wipro, Bharti Airtel, BHEL, Tata Power, Sun Pharma, SBI, Coal India, Reliance Infra, Hero MotoCorp, Maruti Suzuki, Sun Pharma, Bajaj Auto, M&M, are among gainers in Sensex and Nifty. Infosys, TCS, Cairn, HDFC Bank, Hindalco, ONGC, ITC, HUL are among losers in Sensex and Nifty. The INDIA VIX on NSE was down 2 % to end at 14.40. It hit a day’s high of 14.67 and a day’s low of 14.01. Shares of Wipro gained ~3% to close at 360. The company announced that it will demerge three non-IT business divisions, including consumer products segment, into a privately-held company to be named Wipro Enterprises Ltd. The new unlisted firm will include Wipro Consumer Care & Lighting (including furniture business), Wipro Infrastructure Engineering (hydraulics and water businesses) and Medical Diagnostic Product & Services business. Shares of Maruti hit 52-week high, the stock gained ~2% to close at 1463 after the company reported an 85.46% increase in total sales at 1,03,108 units in October against 55,595 units in the same month last year. Its domestic sales increased to 96,002 units compared to 51,458 units in the year-ago period while exports went up by 71.77% to 7,106 units last month from 4,137 units in the year-ago period. Shares of M&M ended higher by ~2% to close at 902 after the company sales grew by 29% to 53,438 units over October 2011 which stood at 41,506 units. The company’s passenger vehicles registered sales at 26,932 units in October 2012, a growth of 44% over the corresponding period last year. Shares of Tata Motors surged by 4.5% to close at Rs266 after the company reported total sales at 71771 units in October against 68009 units in the same month last year. Globally, the Asian markets ended with gains on Thursday led by the Chinese stocks amid improvement seen in the manufacturing data. China’s private-sector PMI released by HSBC, climbed to an eight-month high of 49.5, up from a final reading of 47.9 in the month of September beating estimates on the street. The Nikkei index in Japan gained 0.2%, the Hang Seng index in Hong Kong was up 0.8%, the Shanghai Composite index in China surged ~2% and the Taiwan index rose 0.2%. On the other hand, the Straits Times index in Singapore declined 0.4% and the Kospi index fell by 0.72%. The European markets were trading mixed. The FTSE index in UK was up 0.23%. While the CAC index in France was down 0.4% and DAX index was almost unchanged. UK Markit/CIPS manufacturing purchasing managers' index, or PMI, fell to 47.5 in October from a revised 48.1 a month earlier. A reading of less than 50 indicates a contraction in activity. In a recent development in Spain, market regulator said on Thursday that it would extend the ban on short selling of all stocks on Spanish exchanges by an additional three months. The regulator had banned short selling of all stocks back in July in the wake of increased market volatility.