Daily stock market review and outlook

Positive global market sentiment helped the Indian stock market to post its biggest single day percentage gain of the year. Global market sentiments improved on reports that the US Federal Reserve will continue with its bond-buying plan to support growth in US. Also optimism of global growth recovery on that China maintained 7.5 percent growth target for fiscal year 2013 boosted the market sentiment throughout the world. On a day when all the global markets ended with smart gains, Indian markets which were already undervalued bounced back. Report of Credit Suisse saying that India has joined "the Cheapest-4 club" as of Tuesday, meaning it is among the four most inexpensive markets in the Asia ex-Japan region saw investors rushing in.

The 30-share BSE Sensex gained 265.21points to end the day’s trading at 19143.17. The Sensex hit to a day's high of 19164.04and a fell to a day's low of 18943.62. It opened at 18943.62. The broader indices, NSE Nifty gained 85.75 points, to end the day’s trading at 5784.25. The 50-share Nifty touched a day's high of 5790.10 and fell to a day's low of 5722.40. It opened at 5722.45.

Of the 50-share Nifty pack 46 stocks ended with gains while the rest 4 stocks closed with loses. The top 5 gainers among NSE stocks are: Sesa Goa surging by 5.31 %, followed by Hindalco (4.50 %), HCL Tech (4.22 %), Ambuja Cement (4.01 %) and Tata Motors (3.71 %). The only 4 losers among NSE socks are: Bajaj Auto (0.79 %), BHEL (0.70 %), HDFC (0.09 %) and Sun Pharma (0.02 %).

Of the 30 shares of BSE index components, only 26 stocks ended in positive terrain, while the rest 4 stocks closed in negative zone. The top 5 gainer in BSE Sensex stocks are: Sterlite Industries surging by 4.47 %, followed by Hindalco (4.29 %), Tata Motors (3.73 %), ICICI Bank (3.36 %) and Wipro (3.30 %). The only 4 losers of the Sensex pack were: Bajaj Auto (0.64 %), BHEL (0.63 %), ITC (0.26 %), and NTPC (0.10 %).

Both BSE Mid Cap and Small Cap index closed with gains of 1.7 % and 1.1 % respectively, in today’s trade. All the 13 sectoral indices in BSE ended with gains.  BSE Realty was the top gainer which surged by 3.13%, followed by BSE Metal up by 2.65% and BSE Bankex up by 1.89%. Remaining ten sectors gained in the range of 0.22-1.78%.

The advance decline ratio was heavily in favor of the bulls today. Of the 2933 stocks traded on the BSE, 1,679 (57.25%) rose, 1142 (38.94%) fell and 112 (3.82%) stocks remained unchanged.

Market outlook for tomorrow

Except Jakarta Composite, all the Asian markets ended with heavy gains today. Japan’s Nikkei gained 0.27 % in today’s trade. Jakarta Composite lost 0.20 %, Hang Sang index in Hong Kong gained 0.10 %, China’s Shanghai Composite ended higher by 2.33 %, and KOSPI Index was up by 0.17 %. Markets in Taiwan were closed higher by 0.83 % today and Straits Times gained 0.26 %.

All of the European markets are trading with gains today. FTSE index in UK is at present trading up by 1.36 %, the CAC index in France is up by 2.09 %, DAX index in Germany is trading up by 2.32 % and AEX Amsterdam Index is up by 2.04 %. US stock markets are also trading with handsome gains. Dow Jones Industrial Average is trading higher by 1.00 %, while Nasdaq Composite Index is up by 1.24 %. In fact Dow hits all-time high, tops 2007's record of 14198.10

Thus the broad outlook for tomorrow’s market seems to be positive. Hope of a rate cut by RBI, expectations of more doses to revive the growth and control fiscal deficit by Finance Minister and positive global cues is all set to see Indian stock market post smart gains tomorrow.