Coming into the session after four straight days of
consolidation, Indian benchmark equity indices showed renewed enthusiasm
as they vehemently rallied by two and a quarter percent to re-conquer
the psychological 4,850 (Nifty) and 16,150 (Sensex) levels in the
session. Hyperactive bulls aggressively piled up positions in not only
heavyweight stocks but in the broader markets too, ahead of the
quarterly earnings season which will formally commence with bellwether
Infosys' result announcement on January 12, 2012. The key gauges finally
managed to sail beyond the 4,780 (Nifty) and 16,900 (Sensex) levels
which had proved as though nuts to crack for the indices despite
repeated attempts to claw beyond those levels. There appeared no
trepidation in the session either from the domestic or global front as
market sentiment was buoyed on hopes that Euro-zone leaders are taking
efforts towards implementing tougher budget rules across the single
currency zone. A tentative improvement in investors' risk appetite was
evident globally amid speculations of monetary easing by China and hopes
that the fourth quarter's corporate earnings from top US companies
would be impressive. On the domestic front, worries over the rupee's
outlook alleviated to some extent as the currency rose to strongest
levels in around a month on the back of strong FII flows and rally in
equities. Meanwhile, bankers have sought a cut CRR so that liquidity
pressures that are likely to emerge down the line are taken care of,
however the Reserve Bank is of the view that liquidity position is
comfortable. Sentiments also got a lift in the session after Moody's in
addition to the three upgrades in December 2011, also upgraded India's
short-term country ceiling on foreign currency bank deposits.
Earlier on Dalal Street, the benchmark got off to an optimistic start following the Asian peers as sentiments got bolstered after getting further evidence that the world's largest economy, US is steadily gaining momentum. The frontline indices gathered strength thereon and commenced the northbound journey with great conviction. There appeared 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. Finally the NSE's 50-share broadly followed index Nifty, registered a triple digit rally to settle a tad below the crucial 4,850 support level while Bombay Stock Exchange's Sensitive Index -Sensex- garnered a massive three hundred and fifty points and ended above the psychological 16,150 mark. Moreover, broader markets showed resilience by outclassing their larger peers as investors carried forward their value hunting in beaten down shares from the midcap and small cap space. On the BSE sectoral space, the high beta Realty counter remained the top gainer in the space with over four percent gains followed by the beaten down Capital Goods index which ended with over three and half a percent gains. Meanwhile, Auto counter too surged close to three percent despite SIAM lowering car sales growth forecast for the third time to 0-2 percent for the ongoing fiscal citing unfavorable macro economic conditions, however, it said that the sales may see a jump of 11-13 per cent in FY13. Though, there appeared no sectoral laggards some individual names like TCS and Gail India languished in the negative terrain with moderate cuts. The markets jumped on stronger volumes of over Rs 1.24 lakh core while the turnover for NSE F&O segment also remained on the higher side as compared to that on Monday at over 1.07 lakh crore. The market breadth remained extremely optimistic as there were 2117 shares on the gaining side against 671 shares on the losing side while 105 shares remained unchanged.
Finally, the BSE Sensex jumps 350.37 points or 2.22% to settled at 16,165.09, while the S&P CNX Nifty climbed by 106.75 points or 2.25% to close at 4,849.55.
The BSE Sensex touched a high and a low of 16,180.97 and 15,898.32 respectively. The BSE Mid cap and Small cap indices up by 2.24% and 2.63% respectively.
The major gainers on the Sensex were Mahindra & Mahindra up 5.63%, Hindalco up 4.28%, L&T up 4.24%, Jindal Steel up 4.12% and Reliance up 3.99%. While, TCS down 0.41% and GAIL India down 0.16%, were the major losers on the index.
On the BSE sectoral space, Realty up 4.20%, Capital Goods (CG) up 3.56%, Bankex up 3.17%, Metal up 2.96% and Auto up 2.91% were the top gainers, while there were no loser on the BSE sectoral space.
Meanwhile, rating agency, Moody's Investors Service has raised India's short-term foreign currency rating to an investment grade to Prime (P-3), signaling satisfactory ability to repay short-term obligations. The development is likely to aid domestic companies to borrow funds from overseas markets at rates better than earlier when the short-term country ceiling on foreign currency bank deposit was speculative or NP (not prime).
The recent up-gradation by Moody's has come after Ministry of Finance sought clarification from the rating agency regarding the short-term country ceiling on foreign currency bank deposit, which had not found mention in the earlier decision by Moody's.
The global rating agency's upgrade has come in less than a month after it lifted India's local currency debt rating by one notch to the lowest investment grade, in-line with the foreign currency bond ratings at Baa3 with a stable outlook. The upgrade in December was expected to encourage FIIs to increase their exposure in gilts and help companies raise funds from abroad at competitive rates.
The Department of Economic Affairs (DEA) under the finance ministry is going to continue to engage rating agencies on regular basis to impress upon them the long-term structural strengths and sound fundamentals of the Indian economy. At present, six sovereign ratings agencies viz. Standard & Poor's, Moody's, DBRS, Fitch, Japanese Credit Rating Agency and the Rating and Investment Information Inc, assign ratings to India. The S&P CNX Nifty touched a high and low of 4,855.90 and 4,768.25, respectively.
The European markets were trading in green. France's CAC 40 up 1.70%, Britain's FTSE 100 up by 1.04% and Germany's DAX up by 2.08%.
Sentiments remained bullish in the Asian region and all the equity indices rallied on Tuesday with major indices garnered gain of over a percentage point on signs that the US economy may be strengthening. Improving economic data out of the US was one key factor working in favor of markets. The US added 200,000 jobs in December in a burst of hiring that drove the unemployment rate down two notches to 8.5 percent, its lowest in almost three years.
Chinese benchmark Shanghai Composite surged over two and half a percent on Tuesday, after weaker-than-expected China trade data boosted hopes that Beijing would relax monetary policy to contain a slowdown in the world's second-largest economy moreover, Seoul index rose about one and half a percent as investors relished the prospect of stimulus moves by the Chinese government following weaker than expected trade data and hints of policy easing.
Earlier on Dalal Street, the benchmark got off to an optimistic start following the Asian peers as sentiments got bolstered after getting further evidence that the world's largest economy, US is steadily gaining momentum. The frontline indices gathered strength thereon and commenced the northbound journey with great conviction. There appeared 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. Finally the NSE's 50-share broadly followed index Nifty, registered a triple digit rally to settle a tad below the crucial 4,850 support level while Bombay Stock Exchange's Sensitive Index -Sensex- garnered a massive three hundred and fifty points and ended above the psychological 16,150 mark. Moreover, broader markets showed resilience by outclassing their larger peers as investors carried forward their value hunting in beaten down shares from the midcap and small cap space. On the BSE sectoral space, the high beta Realty counter remained the top gainer in the space with over four percent gains followed by the beaten down Capital Goods index which ended with over three and half a percent gains. Meanwhile, Auto counter too surged close to three percent despite SIAM lowering car sales growth forecast for the third time to 0-2 percent for the ongoing fiscal citing unfavorable macro economic conditions, however, it said that the sales may see a jump of 11-13 per cent in FY13. Though, there appeared no sectoral laggards some individual names like TCS and Gail India languished in the negative terrain with moderate cuts. The markets jumped on stronger volumes of over Rs 1.24 lakh core while the turnover for NSE F&O segment also remained on the higher side as compared to that on Monday at over 1.07 lakh crore. The market breadth remained extremely optimistic as there were 2117 shares on the gaining side against 671 shares on the losing side while 105 shares remained unchanged.
Finally, the BSE Sensex jumps 350.37 points or 2.22% to settled at 16,165.09, while the S&P CNX Nifty climbed by 106.75 points or 2.25% to close at 4,849.55.
The BSE Sensex touched a high and a low of 16,180.97 and 15,898.32 respectively. The BSE Mid cap and Small cap indices up by 2.24% and 2.63% respectively.
The major gainers on the Sensex were Mahindra & Mahindra up 5.63%, Hindalco up 4.28%, L&T up 4.24%, Jindal Steel up 4.12% and Reliance up 3.99%. While, TCS down 0.41% and GAIL India down 0.16%, were the major losers on the index.
On the BSE sectoral space, Realty up 4.20%, Capital Goods (CG) up 3.56%, Bankex up 3.17%, Metal up 2.96% and Auto up 2.91% were the top gainers, while there were no loser on the BSE sectoral space.
Meanwhile, rating agency, Moody's Investors Service has raised India's short-term foreign currency rating to an investment grade to Prime (P-3), signaling satisfactory ability to repay short-term obligations. The development is likely to aid domestic companies to borrow funds from overseas markets at rates better than earlier when the short-term country ceiling on foreign currency bank deposit was speculative or NP (not prime).
The recent up-gradation by Moody's has come after Ministry of Finance sought clarification from the rating agency regarding the short-term country ceiling on foreign currency bank deposit, which had not found mention in the earlier decision by Moody's.
The global rating agency's upgrade has come in less than a month after it lifted India's local currency debt rating by one notch to the lowest investment grade, in-line with the foreign currency bond ratings at Baa3 with a stable outlook. The upgrade in December was expected to encourage FIIs to increase their exposure in gilts and help companies raise funds from abroad at competitive rates.
The Department of Economic Affairs (DEA) under the finance ministry is going to continue to engage rating agencies on regular basis to impress upon them the long-term structural strengths and sound fundamentals of the Indian economy. At present, six sovereign ratings agencies viz. Standard & Poor's, Moody's, DBRS, Fitch, Japanese Credit Rating Agency and the Rating and Investment Information Inc, assign ratings to India. The S&P CNX Nifty touched a high and low of 4,855.90 and 4,768.25, respectively.
The
top gainers on the Nifty were Reliance Power up 5.80%, PNB up 5.24%,
M&M up 5.08%, Reliance Infra up 4.67% and Hindalco up 4.37%.
On the flip side, Ranbaxy down 0.94% and TCS down 0.12% were the top losers on the index. The European markets were trading in green. France's CAC 40 up 1.70%, Britain's FTSE 100 up by 1.04% and Germany's DAX up by 2.08%.
Sentiments remained bullish in the Asian region and all the equity indices rallied on Tuesday with major indices garnered gain of over a percentage point on signs that the US economy may be strengthening. Improving economic data out of the US was one key factor working in favor of markets. The US added 200,000 jobs in December in a burst of hiring that drove the unemployment rate down two notches to 8.5 percent, its lowest in almost three years.
Chinese benchmark Shanghai Composite surged over two and half a percent on Tuesday, after weaker-than-expected China trade data boosted hopes that Beijing would relax monetary policy to contain a slowdown in the world's second-largest economy moreover, Seoul index rose about one and half a percent as investors relished the prospect of stimulus moves by the Chinese government following weaker than expected trade data and hints of policy easing.
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