Daily stock market review and outlook

As was predicted in yesterday’s market outlook, Indian stock market indices posted its biggest single day gain of the month and surged for the second consecutive day today. After remaining lackluster for most part of the day, the market sprang to life at around 14:00 hrs after the European markets started the day’s trading on a firm note on the back of positive German data. The Indian market even ignored the negative closing of most Asian markets. Indications of investor-friendly measures in the Budget also lifted the market sentiment.

The 30-share BSE Sensex gained 134.64 points to close at 19635.72. The Sensex surged to a day's high of 19671.17and a fell to a day's low of 19457.21. It opened at 19523.70. The broader indices, NSE Nifty gained 41.50 points, to end at 5939.70. The 50-share Nifty touched a day's high of 5947.55 and a day's low of 5883.15. It opened at 5900.20.

Of the 50-share Nifty pack 42 stocks ended with gains while the rest 08 stocks closed with loses. The top 5 gainers among NSE stocks were: ONGC surging by 3.73 %, followed by DLF (3.47 %), ACC (2.98 %), Ranbaxy (2.72 %) and BHEL (2.27 %). The top 5 losers among NSE socks are: Bharti Airtel (1.96 %), GAIL (1.68 %), Coal India (1.25 %), Hero Motocorp (1.23 %) and Jindal Steel (0.70 %).

Of the 30 shares of BSE index components, 22 stocks ended in positive terrain, 08 stocks closed in negative zone. Top 5 gainers in BSE Sensex stocks were: ONGC surging by 4.03 %, followed by Maruti (2.19 %), Bajaj Auto (2.11 %), BHEL (2.00 %) and Cipla (1.96 %). The top 5 losers of the Sensex pack were: Bharti Airtel (1.94 %), Hero Motocorp (1.37 %), GAIL (1.37 %), Coal India (1.35 %) and Jindal Steel (0.79 %).

Both BSE Mid Cap and Small Cap index closed with gains. Mid Cap index gained 0.94 % while, the Small Cap Index gained 1.12 %. Among the 13 sectoral indices in BSE, all the 13 sectors closed with gains. The top five gaining sectors were: BSE Realty up 1.90%, BSE IT up 1.66%, BSE HC up 1.38%, BSE Power up 1.16% and BSE TECk up 1.10%.

The advance decline ratio was also in favor of the bulls. Of the 2960 stocks traded on the BSE, 1371 (46.32 %) rose, 742 (25.07 %) fell and 874 (28.61%) stocks remained unchanged.

Market outlook for tomorrow

Asian markets ended the day’s trading on a mixed note. Japan’s Nikkei was down by 0.31 %, Jakarta Composite was down by 0.22 %, Hang Seng index in Hong Kong lost 1.02 % and China’s Shanghai Composite ended lower by 1.60 %. KOSPI Index gained 0.20 %, Markets in Taiwan gained 0.22 % and Straits Times gained 0.23 %.

European markets are on a high today. FTSE index in UK is up by 0.96%, the CAC index in France is up by 1.88 %, DAX index in Germany is up by 1.62 % and AEX Amsterdam Index is up by 1.28 %. US stock markets are also trading higher. Dow Jones Industrial Average is up by 0.30 %, while Nasdaq Composite Index is trading up by 0.33 %

Meanwhile, foreign institutional investors (FIIs) continued to remain bullish on India. Continuing their buying spree, FIIs bought net shares Rs 142.91 crore yesterday as per provisional data from bourses.

So market will remain positive even tomorrow and a smart rally is definitely on the cards. This run will most likely continue to the run up of union budget on 28^th February.