A day after halting the four successive session
downtrend, Indian frontline equity indices took a quantum leap on the
second trading session of 2012 by vehemently rallying to re-conquer the
psychological 4,750 (Nifty) and 15,900 (Sensex) levels. The block buster
performance staged by the markets has not only propped up the
benchmarks by close to three percentage points but also underpinned them
to the highest levels in a week. There appeared not even an iota of
profit booking in the session as enthusiastic investors largely focused
on hefty bottom fishing in badly butchered but fundamentally strong
equities. Across the board buying was evident in the session with the
Capital Goods counter being one of the prominent gainers after
sentiments got buoyed on getting an encouraging manufacturing activity
data which showed that the sector resiliently bounced in the month of
December as it accelerated at a swiftest pace in last six months. The
upbeat domestic demand, new orders and increase in exports together
helped in underpinning the HSBC PMI index to remain in the expansionary
territory for 33 months in a row. The banking counter too garnered a lot
of traction in the session amid hopes of monetary easing by the Reserve
Bank while the decline in government bond yields for second day in a
row also helped most banking names in spiking up to higher levels.
Meanwhile, the PSU oil marketing companies viz. HPCL, BPCL and IOC
bucked the optimistic trend and settled with losses because of surge in
international crude oil prices and also as the government did not
allowed state-run fuel retailers to hike petrol prices, ahead of a
series of state elections. Moreover, investors overlooked the November
trade data which showed exports grew at the slowest pace in 24-months
while the trade deficit nearly doubled to $13.6 billion from $7.3
billion in November 2010 due to slowing exports and surging imports. On
the global front, some of the markets in Asia remained closed for
extended New Year holiday while the markets that were open exhibited
encouraging trends, while the European markets a day after staging sharp
rally, continued to trade on a steady note.
Earlier on Dalal Street, the benchmark got off to a gap up opening in tandem with the optimistic sentiments prevailing in Asian markets post on the back of encouraging global manufacturing activity reports. The frontline indices gathered momentum and commenced the northbound journey with great conviction. There appeared absolutely no resistance what so ever throughout the session as the indices kept conquering one psychological level after another. The indices surged from strength to strength and the journey halted only with the end of session around the highest point of the day. Eventually, the NSE's 50-share broadly followed index - Nifty went for a triple digit rally to close above the crucial 4,750 levels while Bombay Stock Exchange's Sensitive Index - Sensex garnered colossal gains of over four hundred points and closed above the psychological 15,900 mark. Moreover, the broader markets too fervently rallied to settle with huge gains of around two and half a percent, underperforming their larger peers. On the BSE sectoral space, the Metal sector shone brightly and remained the top gainer in the space with over five percent gains followed by the Capital Goods and rate sensitive Bankex and Realty indices which ended with over four percent gains. Meanwhile, TV18 Broadcast was locked in upper circuit on reports that Reliance Industries will sell part of its stake in regional broadcaster ETV to TV18 Broadcast. The markets gained on larger volumes of over Rs 1 lakh core while the turnover for NSE F&O segment also remained on the higher side as compared to that on Monday at over 0.87 lakh crore. The market breadth too remained extremely optimistic as there were 2019 shares on the gaining side against 740 shares on the losing side while 109 shares remained unchanged.
Finally, the BSE Sensex jumped 421.44 points or 2.72% to settle at 15939.36, while the S&P CNX Nifty climbed by 128.55 points or 2.77% to close at 4,765.30.
The BSE Sensex touched a high and a low of 15970.31and 15640.56 respectively. The BSE Mid cap index was up by 2.42% and Small cap index was up by 2.33%.
The major gainers on the Sensex were DLF up 6.84%, Tata Steel up 6.06%, Jindal Steel up 5.67%, Tata Motors up 5.50% and Tata Power up 5.16%. While, M&M down 1.09% and Hero MotoCorp down 0.06%, were the major losers on the index.
On the BSE sectoral space, Metal up 5.05%, Capital Goods (CG) up 4.40%, Bankex up 4.35%, Realty up 4.28% and PSU up 3.78% were the top gainers while there was no loser on the BSE sectoral space.
Meanwhile, India's manufacturing activity showed some resilience in the month of December as it accelerated at a swift pace on the back of strong new work intakes and output growth. The expansion in manufacturing came in the face of continued contraction in most Asian nations and across the European region. However, upbeat domestic demand, new orders and increase in exports together helped in underpinning Indian PMI index to remain in the expansionary territory for 33 months in a row.
According to the HSBC purchasing managers' index (PMI), the manufacturing sector expanded to 54.2 in December, as against 51 in the previous month of 2011. A figure above 50 signals increase in production while, a number below 50 indicates contraction. Though the factory sector growth in the month remained lower than the long-run series average, however, the PMI reading, which measures the overall health of manufacturing sector, suggested that factory activity saw strongest improvement in business conditions in last six months.
After showing signs of cooling and coming extremely close to contracting in the last few months, the manufacturing sector has bounced back on improved domestic and foreign demand, indicating that momentum in the sector is not as bad as other official manufacturing indicators pointed out recently. The month of December saw sharp rise in new order volumes while the rate of growth of manufacturing output accelerated to highest levels in four months. Besides, manufacturing sector employment rose in the month under review after four straight months of showing job losses. But, the rate of input cost inflation despite showing signs of easing in November, remained stubbornly above the long-run series average.
Meanwhile, the RBI after relentlessly hiking key interest rates thirteen times since March 2010 in its bid to rein in the inflationary pressure on the economy, showed some mercy and paused the liquidity tightening cycle in its last policy review meet in December. The RBI governor has also hinted at moving towards monetary easing as its concerns shifted from containing inflation to helping the cooling economy recuperate.
The S&P CNX Nifty touched a high and low of 4,773.10 and 4,675.80, respectively.
Equity markets which were opened for trade in Asia, ended with a significant gains on Tuesday, with resource and financial firms among the notable gainers, as investors welcomed marginal improvement in factory activity across the globe. Chinese manufacturing unexpectedly rebounded in December on holiday shopping, as the world's number two economy showed some resilience despite strife in key export markets. The country's purchasing managers index (PMI) reached 50.3 in December. A reading above 50 indicates the sector is expanding.
Hang Seng soared 443.02 points or 2.40% to 18,877.41, Jakarta Composite gained 48.74 points or 1.28% to 3,857.88, Straits Times was up by 42.01 points or 1.59% to 2,688.36, Seoul Composite surged 49.04 points or 2.69% to 1,875.41 and Taiwan Weighted added 101.17 points or 1.46% to 7,053.38.
Stock markets in China and Japan remained shut for extended New Year's holiday.
Earlier on Dalal Street, the benchmark got off to a gap up opening in tandem with the optimistic sentiments prevailing in Asian markets post on the back of encouraging global manufacturing activity reports. The frontline indices gathered momentum and commenced the northbound journey with great conviction. There appeared absolutely no resistance what so ever throughout the session as the indices kept conquering one psychological level after another. The indices surged from strength to strength and the journey halted only with the end of session around the highest point of the day. Eventually, the NSE's 50-share broadly followed index - Nifty went for a triple digit rally to close above the crucial 4,750 levels while Bombay Stock Exchange's Sensitive Index - Sensex garnered colossal gains of over four hundred points and closed above the psychological 15,900 mark. Moreover, the broader markets too fervently rallied to settle with huge gains of around two and half a percent, underperforming their larger peers. On the BSE sectoral space, the Metal sector shone brightly and remained the top gainer in the space with over five percent gains followed by the Capital Goods and rate sensitive Bankex and Realty indices which ended with over four percent gains. Meanwhile, TV18 Broadcast was locked in upper circuit on reports that Reliance Industries will sell part of its stake in regional broadcaster ETV to TV18 Broadcast. The markets gained on larger volumes of over Rs 1 lakh core while the turnover for NSE F&O segment also remained on the higher side as compared to that on Monday at over 0.87 lakh crore. The market breadth too remained extremely optimistic as there were 2019 shares on the gaining side against 740 shares on the losing side while 109 shares remained unchanged.
Finally, the BSE Sensex jumped 421.44 points or 2.72% to settle at 15939.36, while the S&P CNX Nifty climbed by 128.55 points or 2.77% to close at 4,765.30.
The BSE Sensex touched a high and a low of 15970.31and 15640.56 respectively. The BSE Mid cap index was up by 2.42% and Small cap index was up by 2.33%.
The major gainers on the Sensex were DLF up 6.84%, Tata Steel up 6.06%, Jindal Steel up 5.67%, Tata Motors up 5.50% and Tata Power up 5.16%. While, M&M down 1.09% and Hero MotoCorp down 0.06%, were the major losers on the index.
On the BSE sectoral space, Metal up 5.05%, Capital Goods (CG) up 4.40%, Bankex up 4.35%, Realty up 4.28% and PSU up 3.78% were the top gainers while there was no loser on the BSE sectoral space.
Meanwhile, India's manufacturing activity showed some resilience in the month of December as it accelerated at a swift pace on the back of strong new work intakes and output growth. The expansion in manufacturing came in the face of continued contraction in most Asian nations and across the European region. However, upbeat domestic demand, new orders and increase in exports together helped in underpinning Indian PMI index to remain in the expansionary territory for 33 months in a row.
According to the HSBC purchasing managers' index (PMI), the manufacturing sector expanded to 54.2 in December, as against 51 in the previous month of 2011. A figure above 50 signals increase in production while, a number below 50 indicates contraction. Though the factory sector growth in the month remained lower than the long-run series average, however, the PMI reading, which measures the overall health of manufacturing sector, suggested that factory activity saw strongest improvement in business conditions in last six months.
After showing signs of cooling and coming extremely close to contracting in the last few months, the manufacturing sector has bounced back on improved domestic and foreign demand, indicating that momentum in the sector is not as bad as other official manufacturing indicators pointed out recently. The month of December saw sharp rise in new order volumes while the rate of growth of manufacturing output accelerated to highest levels in four months. Besides, manufacturing sector employment rose in the month under review after four straight months of showing job losses. But, the rate of input cost inflation despite showing signs of easing in November, remained stubbornly above the long-run series average.
Meanwhile, the RBI after relentlessly hiking key interest rates thirteen times since March 2010 in its bid to rein in the inflationary pressure on the economy, showed some mercy and paused the liquidity tightening cycle in its last policy review meet in December. The RBI governor has also hinted at moving towards monetary easing as its concerns shifted from containing inflation to helping the cooling economy recuperate.
The S&P CNX Nifty touched a high and low of 4,773.10 and 4,675.80, respectively.
The
top gainers on the Nifty were DLF up 6.70%, Kotak Bank up 6.28%, Tata
Steel up 5.73%, Axis Bank up 5.67% and BHEL up 5.64%. On the flip side,
M&M down 1.65%, BPCL down 1.62%, Ambuja Cement down 0.93% and Hero
MotoCorp down 0.70% were the top losers on the index.
The European markets were trading mixed. France's
CAC 40 lost by 0.71%, Britain's FTSE 100 up by 0.81% and Germany's DAX
up by 0.89%. Equity markets which were opened for trade in Asia, ended with a significant gains on Tuesday, with resource and financial firms among the notable gainers, as investors welcomed marginal improvement in factory activity across the globe. Chinese manufacturing unexpectedly rebounded in December on holiday shopping, as the world's number two economy showed some resilience despite strife in key export markets. The country's purchasing managers index (PMI) reached 50.3 in December. A reading above 50 indicates the sector is expanding.
Hang Seng soared 443.02 points or 2.40% to 18,877.41, Jakarta Composite gained 48.74 points or 1.28% to 3,857.88, Straits Times was up by 42.01 points or 1.59% to 2,688.36, Seoul Composite surged 49.04 points or 2.69% to 1,875.41 and Taiwan Weighted added 101.17 points or 1.46% to 7,053.38.
Stock markets in China and Japan remained shut for extended New Year's holiday.
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