MUMBAI: Indian indices rallied Monday reacting positively to the outcome of G 20 meeting during the long weekend. Sentiments in global markets turned positive on hopes that the worst of economic downturn has passed. Buying was seen across the board with traders showing keen interest towards realty, banks and metals space.

“The Dow closed in the positive, while other Asian markets are up. Asian stocks rose for the fourth day, led by banks and electronics makers, after US Federal Reserve Chairman Ben S Bernanke said policies to unfreeze credit markets were working. However, given the sharp bounce-back, we believe that some profit booking at higher levels is possible. In our view, the worst is over for our markets and hence any dips should be used as an opportunity to aggressively build a long-term portfolio,” said Religare report.

At 10:30 am, Bombay Stock Exchange’s Sensex was at 10,609.31, up 260.48 points or 2.52 per cent. The 30-share index touched an intra-day high of 10654.89 and low of 10521.78.

National Stock Exchange’s Nifty was at 3289.45, up 78.40 points or 2.44 per cent. The broader index hit a high of 3303.90 and low of 3211.35.

“Trend deciding level for the day is 3,167/10,296. If Nifty trades above this level during the first half-an-hour of trade then we may
witness a further rally up to 3,273–3,335/10,485-10,621. However, if Nifty trades below 3,167/10,296 for the first half-an-hour of trade then it may correct up to 3,105/10,160,” said Angel Broking note.

BSE Midcap Index was up 2.53 per cent and BSE Smallcap Index gained 2.72 per cent.

Amongst the sectoral indices, BSE Realty Index surged 5.81 per cent, BSE Metal Index gained 4.72 per cent and BSE Bankex moved 3.98 per cent higher. BSE FMCG Index edged 0.32 per cent lower.

DLF (8.38%), Reliance Communications (7.60%), Tata Steel (6.03%), Jaiprakash Associates (5.64%) and Mahindra & Mahindra (5.21%) were the top Sensex gainers.

Hindustan Unilever (-1.65%), ACC (-1.21%) and Maruti Suzuki (-0.93%) were the only index losers.
HCL Technologies has entered into a six-year, multi-regional data center services and transformation engagement with Xerox Corporation. The contract will span mid-range services, business continuity and disaster recovery for Xerox’s information management operations. HCL will manage data center hosting and migration, virtualization, consolidation and storage architecture services across North America and Europe. In addition, HCL will provide architecture and consulting services for new technology and system design, adoption and lifecycle improvement. The share surged 8.65 per cent on the NSE.

French pharmaceutical giant Sanofi Aventis’ proposed deal to acquire a majority stake in Mumbai-based Piramal Healthcare has fallen
through due to differences over valuation. Shares of Piramal Healthcare were up 1.29 per cent on the NSE.

US stocks surged on Friday, with the Dow marking its best four-week winning streak since 1933, lifted by robust results from Research in Motion and comments by Fed Chairman Ben Bernanke, who said the central bank will do everything it can to stabilize banks.

Growing conviction that the worst is over for the economy helped Wall Street shrug off dour jobs data showing the highest unemployment rate since 1983. The Dow Jones Industrial Average climbed 39.51 points, or 0.50 per cent, to 8,017.59, The Standard & Poor’s 500 Inde rose 8.12 points, or 0.97 per cent, to 842.50 and the NasdaqComposite Index gained 19.24 points, or 1.20 percent, to1,621.87.

Asian stocks extended gains for the fourth straight day, led by banks and electronics makers, after encouraging statements by the US Federal Reserve Chairman Ben Bernanke.

The Nikkei was 1.57 per cent, Hang Seng climbed 3.40 per cent, Straits Times advanced 1.89 per cent. Chinese markets are shut for a national holiday.

source: Economictiems

Tags: buying, DLF, nifty, rcom, sensex, tata steel

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