Mumbai: After a long Diwali break, the market saw 600 points rally in the Friday's opening trade and held the straight line on the graph throughout the session. Huge fresh longs build up took the market to near 3-month high.
The 30-share BSE Sensex climbed 515.97 points or 3 per cent, to close at 17,804.80 and the 50-share NSE Nifty jumped 158.90 points or 3.05 per cent, to end at 5,360.70 supported by 45 stocks. Huge call buying was seen around 5400 and 5500 levels while put writing was seen around 5200 and 5300 levels.
The BSE benchmark Sensex rallied more than 6 per cent this week led by two reasons - one is the finally much awaited bailout plan for the Eurozone got approved on Wednesday in the EU summit and the second is the likely pause in rate hikes from RBI in the next policy.
Investors have been optimistic on the Indian markets since the RBI policy event. According to Portfolio Manager, PN Vijay, the RBI has given a stunner by making a rear promise that it won’t raise interest rates in December, so that puts a base for the bulls to operate domestically.
"We have enough ammunition to take the Nifty probably to 5,600 in the next two months," he added. "India is still having a bit of catching up to do. The market is still down for the year as a whole whereas the Dow and the S&P have turned positive for 2011. So this catching up thing can probably take the market another 2-3 per cent up."
Eurozone bailout plan caused the steep rally on Friday. European Union members agreed in its Summit to raise the eurozone bailout fund to about Euro 1 trillion and are also going to recapitalize banks. EU struck a deal with private lenders to accept a 50 per cent on their Greek bonds.
Despite being the mood lifter for the markets today, experts are concern about implementation of that plan.
Adrian Foster of Rabobank says the European Union's bailout fund has clear risk of implementation. He says, "With different governments involved at every stage, different political scenarios in each country and with coalitions, there is a challenge to implementation of these austerity measures."
He says, going forward, the market will find some negative headlines intermittently with the failure to implement the measures. European markets were flat, at the time of closing of Indian equities; they already priced in the event.
Back home, all sectoral indices closed in the green. The BSE Metal Index outperformed every sector, rallying 6.3 per cent and Realty jumped 5.3 per cent.
Bankex and Capital Goods Index rallied over 3.5 per cent. Auto, Power and Oil & Gas indices gained 2-3 per cent.
Metals, banks, capital goods drive Nifty 150 pts higher
The NSE Nifty has sustained its morning gains owing to buying across sectors and positive global cues post the European Union agreement on the bailout plan. The 30-share BSE Sensex gained 506 points to 17,795 and the 50-share NSE Nifty moved up 157 points to 5,358 led by 43 stocks.
In the largecap space, Reliance Infrastructure, Hindalco and Sterlite Industries climbed 10-12 per cent. Jaiprakash Associates, Jindal Steel and Tata Motors follow close, gaining 7-8 per cent.
BPCL however fell 3 per cent on the back of the rally in crude oil prices post the EU Summit. Maruti Suzuki too lost over 2 per cent ahead of its numbers; a CNBC-TV18 poll sees a fall of 31.5 per cent in net profit to Rs 410 as compared to the year-ago period for the company.
GAIL, Bharti Airtel and Ranbaxy Labs too were down.
SBI, L&T, Tata Steel, Jindal Steel, Tata Motors, Infosys, ICICI Bank, Axis Bank and Reliance Industries were the most active shares on the exchanges.
Meanwhile, Jai Corp, HOEC, Essar Ports, Bharat Forge and BF Utilities rallied 6.5-8 per cent in the midcap space, while Shree Global, Kwality Dairy, MVL, TV18 Broadcast and Gitanjali Gems fell 2-5 per cent.
Among smallcaps, Gokaldas Export, Jindal Cotex, Uttam Galva, Gabriel India and Money Matters jumped 11-14 per cent whereas Chromatic India, Asian Star, AK Capital, Lloyds Metals and Kama Holdings slipped 6-12 per cent.
Comments
0 comment