Daily stock market review and outlook

The highlight of today’s trading in the Indian stock market has been a sharp rebound after plunging to the lowest level of 2013. In the absence of any major cues and trends, stock-specific movements and value based buying at lower levels helped Indian markets to end in positive terrain. On the back of concern about India's widening trade deficit, finance minister talking about most austere budget in recent history also helped the market to come out of the days low and end with gains.

The 30-share BSE Sensex gained 32.93 points to close at 19501.08. The Sensex surged to a day's high of 19,554.48 and a fell to a day's low of 19,462.92. It opened at 19,496.25. The broader indices, NSE Nifty lost 9.55 points, to end at 5887.40. The 50-share Nifty touched a day's high of 5911.00 and a day's low of 5878.45. It opened at 5888.65.

Of the 50-share Nifty pack 28 stocks ended with gains while the rest 22 stocks closed with loses. The top 5 gainers among NSE stocks were: DLF surging by 4.97 %, followed by J P Associate (3.55 %), Power Grid (2.46 %), Tata Steel (2.43 %) and Reliance Infra (2.35 %). The top 5 losers among NSE socks are: Jindal Steel (1.99 %), Coal India (1.93 %), ONGC (1.52 %), Ultratech (1.25 %) and Bajaj Auto (1.21 %).

Of the 30 shares of BSE index components, 17 stocks ended in positive terrain, 13 stocks closed in negative zone. Top 5 gainers in BSE Sensex stocks were: Tata Steel surging by 2.49 %, followed by Hindustan Unilever (1.89 %), Sterlite (1.76 %), L&T (1.57 %) and HDFC (1.47 %). The top 5 losers of the Sensex pack were: Jindal Steel (1.81 %), Coal India (1.77 %), ONGC (1.35 %), Bajaj Auto (1.17 %) and TCS (1.12 %).

Both BSE Mid Cap and Small Cap index closed with gains. Mid Cap index gained 0.4 % while, the Small Cap Index gained 0.7 %. Among the 13 sectoral indices in BSE, 9 sectors closed with gains, while 4 sectors closed in negative. The top three gaining sectors were: BSE Realty up by 2.08%, BSE CG up by 1.18%, BSE Power up by 1.03%.  Top three sectoral losers were: BSE IT down by 0.49%, BSE TECk falling by 0.47% and BSE CD down by 0.22%.

The advance decline ratio was also in favor of the bulls. Of the 2979 stocks traded on the BSE, 1245 (41.79 %) rose, 860 (28.87 %) fell and 874 (29.34%) stocks remained unchanged.

Market outlook for tomorrow

Almost all the Asian markets ended the day’s trading with smart gains. Japan’s Nikkei gained 2.09 %, Jakarta Composite was up by 0.05 %, KOSPI Index gained 0.04 %, Markets in Taiwan gained 0.47 % and Straits Times gained 0.15 %. However Hang Seng index in Hong Kong lost 0.27 % and China’s Shanghai Composite ended lower by 0.45 %.

European markets are having a mixed day today. FTSE index in UK is down by 0.17 %, the CAC index in France is up by 0.15 % while DAX index in Germany is up by 0.41 % and AEX Amsterdam Index is down by 0.09 %. US stock markets are closed today in observance of Presidents' Day.

Meanwhile, foreign institutional investors (FIIs) continued to remain bullish on India. They bought shares worth a net Rs 247.30 crore on last Friday, as per provisional data from the stock exchanges.

India's finance minister plans to cut the public spending target for fiscal 2013/14 by up to 10 percent could spark gains in domestic shares and the market may witness a smart rally. Now eyes are on budget which under all likelihood will be a responsible one which the market expects. Market has indeed fallen considerably from its yearly high and from here it is all set to rise in short term to the build up to the union budget.