Strong Global Signals Spur Sensex To Gain 210 Pts

Strong Global Signals Spur Sensex To Gain 210 Pts The Bombay Stock Exchange (BSE) benchmark Sensex closed the week strongly on account of strong global signals amid expectations of more sops and stimulus plans in the forthcoming interim budget to be declared on February 16.

Heavy buying activity seen across refinery, metal and bank stocks assisted Sensex to make a hefty gain of 210 points (up 2.31%) to end at 9300.86.

BSE Midcap and Smallcap index rallied smartly and rose 1.43% and 1.05% respectively.

Among the sectoral indices, BSE oil & gas and metal grew more than 3% each, consumer durables gained 2.52%, Bankex surged 2.49% and IT was up by 2.28%.

Asian stocks gained, led by banking and technology companies, on optimism government measures worldwide will relieve the financial crisis and stem the declension in the worldwide economic system.

Finally, the BSE Sensex closed the day at 9,300.86 after hitting an intraday high of 9,321.38 and an intraday low of 9,158.59.

In contrast, the broad-based NSE Nifty ended at 2,843.10, up 63.05 points. It also touched an intraday high of 2,852.50 and an intraday low of 2,778.65.

The overall breadth of the market was sharply positive as it saw 1459 advancements as against 1002 declinations.

The major gainers list included Ranbaxy Laboratories, Grasim Industries, Tata Motors, Reliance Industries, ICICI Bank, TCS, Reliance Infrastructure, Bharti Airtel, Mahindra & Mahindra, ONGC, Tata Steel, State Bank of India, Infosys Technologies, NTPC, Wipro, HDFC, Reliance Communications and HDFC Bank.

The stocks such as ITC, Jaiprakash Associates, Larsen & Toubro, Maruti Suzuki, Sterlite Industries, SAIL, Zee Entertainment, ABB, Unitech, Cairn India, Reliance Capital, Tata Communications, Ambuja Cements, GAIL India, Idea Cellular, Suzlon Energy and Power Grid Corporation, GE Shipping, United Spirits, Sesa Goa, Neyveli Lignite Corporation, IVRCL Infrastructure, JSW Steel, Glenmark Pharmaceuticals, Gujarat Petronet, GMR Infrastructure, Alstom Projects, KSK Energy, Gammon India, Jindal Steel, Godrej Industries, Pantaloon Retail and Hindustan Construction also gained.

The major losers in the Sensex were Hindustan Unilever and DLF.

On Friday, the Indian currency (rupee) ended higher by another 9 paisa at 48.68/69.

Inflation, for the week ended Jan 24, 2009, fell to 5.07% as compared to 5.64% a week ago on account of declining costs of fruit and vegetables and manufactured goods.

While discussing on the daily market performance, Mr. P K Agarwal, president – research, Bonanza Portfolio, said that on Friday, Indian stock markets opened smartly but trading was in very narrow range of 2,800 and 2,852 for Nifty, which finally closed at 2,843.10.

He said buying was seen in SAIL, Grasim, Ranbaxy, Tata Motors. Ferrous Metals and Banks led the markets. At the same time, stocks including Cipla, DLF, Nalco, Siemens, Hind Unilever witnessed heavy selling.

He opined, “Next week markets are likely to make a decisive move. Global cues to have impact on the markets.”

“Nifty has good downside support at 2,700 and upside resistance at 2,950,” Mr. Agarwal added.

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