Daily stock market review and outlook

Overnight gains in the US and European markets and strong indications from Asian markets propelled Indian stock market indices to positive territory for the second consecutive day. Hope of a rate cut by RBI and a weakening rupee also helped the market to move ahead. Job hiring data in US showing a substantial rise, thus pointing to a strengthening of US economy and continued support from the Federal Reserve helped all global markets to register gains.

The 30-share BSE Sensex gained 109.44 points to end the day’s trading at 19252.61. The Sensex hit to a day's high of 19293.39 and a fell to a day's low of 19195.47. It opened at 19254.20. The broader indices, NSE Nifty gained 34.35 points, to end the day’s trading at 5818.60. The 50-share Nifty touched a day's high of 5828.70 and fell to a day's low of 5795.05. It opened at 5816.40.

Of the 50-share Nifty pack 30 stocks ended with gains while the rest 20 stocks closed with loses. The top 5 gainers among NSE stocks are: J P Associates surging by 5.53 %, followed by IDFC (4.51 %), DLF (3.92 %), Sesa Goa (3.38 %) and Hindalco (3.25 %). The top 5 losers among NSE socks are: M&M (2.18 %), HUL (2.19 %), ITC (1.90 %), Ambuja Cement (1.26 %) and BPCL (1.07 %).

Of the 30 shares of BSE index components, only 18 stocks ended in positive terrain, while the rest 12 stocks closed in negative zone. The top 5 gainer in BSE Sensex stocks are: Sterlite Industries surging by 4.60 %, followed by Hindalco (3.25 %), Tata Motors (2.88 %), L&T (2.86 %) and Tata Steel (2.59 %). The top 5 losers of the Sensex pack were: M&M (2.16 %), HUL (1.98 %), ITC (1.57 %), GAIL (0.83 %) and Maruti (0.65 %).

Both BSE Mid Cap and Small Cap index closed with gains of 1.1 % and 1.5 % respectively, in today’s trade. Among the 13 sectoral indices in BSE, only 2 sectors ended in negative while 11 sectors closed in positive zone.  Top 3 gainers were: BSE Realty up 4.52%, BSE CG up 2.47% and BSE Metal up 2.20%. The only 2 losers were: BSE FMCG down 1.05% and BSE CD down 0.44%.

The advance decline ratio was heavily in favor of the bulls today. Of the 2,977 stocks traded on the BSE, 1,730 (58.11%) rose, 1,116 (37.49%) fell and 131 (4.40%) stocks remained unchanged.

Market outlook for tomorrow

All the Asian markets ended with heavy gains today. Japan’s Nikkei gained 2.13 % in today’s trade. Jakarta Composite gained 1.54 %, Hang Sang index in Hong Kong gained 0.96 %, China’s Shanghai Composite ended higher by 0.90 %, and KOSPI Index was up by 0.20 %. Markets in Taiwan were higher by 0.22 % today and Straits Times gained 1.34 %.

European markets are trading mixed today. FTSE index in UK is at present trading marginally down by 0.07 %, the CAC index in France is down by 0.35 %, DAX index in Germany is trading up by 0.62 % 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 0.17 %, while Nasdaq Composite Index is down by 0.17 %.

Thus the broad outlook for tomorrow’s market seems to be positive. Hope of a rate cut by RBI  and positive global cues is all set to see Indian stock market move higher tomorrow. However after two days of continuous rise some selling pressure due to profit booking may keep the market under pressure. Analysts feel in the medium term Indian market may scale the level of 21000.