Short covering was second catalyst for today's rally because lot of shorts were built up in the markets due to the monsoon worries, which knocked down the markets a lot in the last few sessions. The shorts were covered today after a gap up opening of 70-80 points.
These positive factors helped the 30-share BSE Sensex to rally 498.33 points or 3.32 pc to close at 15,518.49. The 50-share NSE Nifty surged 147.50 points or 3.31 pc, to settle at 4605.
Not a single stock ended in the red among the largecaps. However, the broader indices outperformed the benchmark indices; the BSE Midcap Index rose 3.6 pc and Smallcap up 4.1 pc. The market breadth was also strong; about 2,260 shares advanced while 564 shares declined on the BSE. Nearly 353 shares remained unchanged.
Nifty trading higher; metals, auto up
At 01:10 pm the Nifty was trading strong and holding 100 points gains led by upsurge in banking, capital goods, metal, realty and oil & gas exploration companies' shares. On the global front, European markets also opened marginally higher.
Base Metals were at fresh 2009 highs; LME Aluminium went up 3 pc, Copper up 2 pc, Lead up 2 pc and Nickel up 4 pc. The BSE Metal Index shot up 4 pc, as Hindalco, Jindal Steel, Sterlite Industries, Tata Steel, NALCO and SAIL were up 3-4.4 pc.
Another outperformed index was Realty, which jumped over 4 pc. HDIL, Unitech, Parsvnath, Indiabulls Real and DLF gained 4-6.8 pc.
The Nifty went up 114 points, to 4,571 and the Sensex surged 381 points, to 15,401. The broader indices rose 3-3.6 pc. The advance:decline ratio stood at 10:1 and all sectoral indices were in the green.
Mark Matthews, Asia Pacific Strategist at Fox-Pitt Kelton said that India was likely to be an underperformer as compared to other global markets in the next quarter but added that from a longer-term perspective, India would outperform, given the good corporate data and the stable government.
Top gainers - ICICI Bank, Hindalco, Maruti Suzuki, DLF, Sterlite Industries, Unitech (surged 5.6 pc as it will be added into MSCI Index), HCL Tech and Tata Communication gained 4-5.5 pc.
Mkts continue positive; Sensex up by 340 pts
At 10:49 am, the Nifty was witnessing huge buying interest on the back of positive Asian cues. It was trading above the 4550 level. On the global front, Asian markets went up 0.8-2 pc while Shanghai was flat. Buying was seen across all the sectors while only BPCL was flat among the large caps.
On the sectoral front, the BSE Realty Index jumped nearly 4 pc and Metal was above 3 pc. Bank, Capital Goods, FMCG, Auto and Power indices were up 2-2.9 pc. Healthcare, Oil & Gas, TECk and IT indices went up 1.3-1.5 pc.
The 30-share BSE Sensex surged 340 points, to 15,360 and the Nifty rose 102 points, to 4,560. The broader indices outperformed the benchmark indices and went up 2.7-3.2 pc. The market breadth was strong; about 1,983 shares advanced while 672 shares declined on the BSE. Nearly 522 shares were unchanged.
Top gainers - Hindalco, Jaiprakash Associates, ICICI Bank, DLF, Sterlite Industries, Unitech, NALCO and Tata Communication gained 3.5-5 pc.
In the midcap space, Carborundum, 3M India, Piramal Health, J&K Bank and Hindustan Oil Exploration were up 6-8% while Jain Irrigation, Kingfisher Airlines, CRISIL, Info Edge and Pantaloon Retail were marginal losers.
In the smallcap space, Uttam Galva surged 20 pc. Usha Martin, Electrosteel, Selan Exploration and Taj GVK Hotels were up 11-14 pc. However, KSB Pumps, Garware Offshore, HSIL, Dhanuka Agritec and Marathon Nextgen fell 3-4 pc.
Mkts open positive; Sensex up by 257 pts
The Sensex opened strong on the back of rally in the global markets which was led by Fed comments. The markets also positively reacted to the draft of Direct tax code, which was unveiled by the government yesterday. Buying was seen across the sectors, especially metals on the back of rally in base metals.
At 9:57 am, the Nifty was up 76 points, to 4,534 and the Sensex shot up 257 points, to 15,277. The CNX Midcap went up 1.7 pc, to 5,830 and the BSE Smallcap Index rose 1.5%, to 6,230. About 666 shares advanced while 37 shares declined on the NSE.
Mahindra Satyam will be added to Global Standard Indices and Unitech is added to MSCI Emerging Markets. Stocks surged 3 pc and 5 pc, respectively.
Among the frontliners, ICICI Bank, Suzlon Energy, Ranbaxy Labs, M&M, L&T, ITC, Nalco, Sterlite Industries, Hindalco, DLF, Tata Communication and Siemens India were the major gainers. However, only BPCL was down in the NSE Nifty 50 stocks.
In Midcap space, Rallis India shot up 6 pc as Tata Chemicals will increase stake in the company by acquiring shares from other promoters.
Ispat, IFCI, Sesa Goa, JP Associates, Balrampur Chini, Shree Renuka Sugars, HOEC, Natco Pharma, Dhampur Sugar, HDIL, WWIL, Aban Offshore, Raj Oil Mills and Uttam Galva were up 3-7 pc. Orbit Corporation was up 2 pc as the company is going to raise USD 20-30 million via QIP.