The rally in the Indian stock market continued for the second successive day taking the BSE Sensex to breach the 20,000-level after two years. Postponement of the implementation of controversial GAAR by two years until April 2016 by the government of India, fall in inflation (WPI) to three year low boosting hopes of rate cut by the Reserve Bank of India on 29th of this month and reports of strong quarter three corporate earnings (Infosys, Axis Bank and TCS) are the driving force behind the rally.
After crossing 20,000 points level in early trade and again for a second time in the last hour, the benchmark BSE Sensex closed with a gain 80.41 points, or 0.40%, at 19,986.82. It is the highest close for the BSE Sensex since January 6, 2011. The broader Nifty rose 0.54 percent, or 32.55 points, to end the day’s trading at 6,056.60, after touching day's high of 6,068.50. This is for the second consecutive day that the Nifty closed above 6,000 level.
Overall, 15 scripts out of the Sensex pack ended with gains and 13 closed with losses while two ruled steady. Share of Bharti Airtel, which rose 4.81 per cent, was the best performer in Sensex today on hopes of tariff hikes. Other major gainers from the Sensex were ITC, ICICI Bank, Tata Power, Bajaj Auto and Tata Motors. However, shares of Coal India, Sterlite Ind and Jindal Steel were the losers.
Midcap index was up by 0.27% while the smallcap index slid 0.06% in today’s trade. 11 of the 13 BSE sectoral indices closed in the green zone. Only BSE IT and BSE Metal ended the day’s trading in red, down by 0.23% and 0.30% respectively. Top sectoral gainers were, BSE Realty up by 1.05%, BSE Bankex up by 0.72%, BSE FMCG up by 0.59%.
The market breadth stood in favor of bears. Of the 3031 stocks traded on the BSE, 1126 (37.15%) rose, 1154 (38.07%) fell and 751 (24.78%) stocks remained unchanged.
Looking at the investment figure of the foreign institutional investors (FIIs), there is hardly any doubt that the underlying sentiment of the market is highly positive and buoyant. FIIs bought shares worth a net Rs 611.10 crore yesterday as per provisional data from the stock exchanges. In fact FIIs have already pumped in Rs 87bn this calendar year into Indian equities proving the inherent strength in the market.
Asian markets were mostly negative today. Hang Seng, KOSPI and Taiwan were down. While Nikkei, Jakarta and Shanghai was shed up. European markets were mostly down. Markets in the US are flat.
One thing is for sure that the Indian market is headed for north. Even if there is some correction, it will be an opportunity to enter the market bandwagon. The inherent strength of the market will get more boos if the RBI decides to go for a repo rate cut in its review of monetary policy this month.
After crossing 20,000 points level in early trade and again for a second time in the last hour, the benchmark BSE Sensex closed with a gain 80.41 points, or 0.40%, at 19,986.82. It is the highest close for the BSE Sensex since January 6, 2011. The broader Nifty rose 0.54 percent, or 32.55 points, to end the day’s trading at 6,056.60, after touching day's high of 6,068.50. This is for the second consecutive day that the Nifty closed above 6,000 level.
Overall, 15 scripts out of the Sensex pack ended with gains and 13 closed with losses while two ruled steady. Share of Bharti Airtel, which rose 4.81 per cent, was the best performer in Sensex today on hopes of tariff hikes. Other major gainers from the Sensex were ITC, ICICI Bank, Tata Power, Bajaj Auto and Tata Motors. However, shares of Coal India, Sterlite Ind and Jindal Steel were the losers.
Midcap index was up by 0.27% while the smallcap index slid 0.06% in today’s trade. 11 of the 13 BSE sectoral indices closed in the green zone. Only BSE IT and BSE Metal ended the day’s trading in red, down by 0.23% and 0.30% respectively. Top sectoral gainers were, BSE Realty up by 1.05%, BSE Bankex up by 0.72%, BSE FMCG up by 0.59%.
The market breadth stood in favor of bears. Of the 3031 stocks traded on the BSE, 1126 (37.15%) rose, 1154 (38.07%) fell and 751 (24.78%) stocks remained unchanged.
Tomorrow’s market outlook
Looking at the investment figure of the foreign institutional investors (FIIs), there is hardly any doubt that the underlying sentiment of the market is highly positive and buoyant. FIIs bought shares worth a net Rs 611.10 crore yesterday as per provisional data from the stock exchanges. In fact FIIs have already pumped in Rs 87bn this calendar year into Indian equities proving the inherent strength in the market.
Asian markets were mostly negative today. Hang Seng, KOSPI and Taiwan were down. While Nikkei, Jakarta and Shanghai was shed up. European markets were mostly down. Markets in the US are flat.
One thing is for sure that the Indian market is headed for north. Even if there is some correction, it will be an opportunity to enter the market bandwagon. The inherent strength of the market will get more boos if the RBI decides to go for a repo rate cut in its review of monetary policy this month.
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