The domestic market made a good comeback today, recovering over half the losses it had suffered in the previous trading session. Gains in select blue-chips and stocks in the broader markets supported the rally.
The market is likely to see a continuation of the upmove next week as the European markets, in early trade on Friday, discounted the rate hike announced by the Chinese central bank after the Asian markets closed for the week.
The market opened lower following weak cues from the global arena and the broader markets underperformed the key indices in early trade. However, buying at select counters at lower prices lifted the indices into positive terrain. The market got a boost on the release of upbeat industrial output numbers for October. In post-noon trade, it pared some of the gains and was range-bound, before rebounding in the last hour on buying in select heavyweights. It touched the day's high, but closed marginally off that mark.
The Sensex added 266.53 points (1.39%) at 19,508.89. The index touched a high of 19,537.40 and a low of 19,074.57, intraday. The Nifty finished the session at 5,857.35, gaining 90.85 points (1.58%). The barometer touched a high of 5,865.50 and a low of 5,721.15 during trade.
The market breadth was positive. The Sensex had 22 gainers while eight stocks ended lower. The Nifty came home with 37 advancing stocks and 13 losers. Ending a five-day slide, the broader markets outperformed the key benchmarks. The BSE Mid-cap index surged 2.02% while the BSE Small-cap index advanced 2.32%.
The top Sensex gainers included ICICI Bank (up 5.71%), Jaiprakash Associates (up 4.65%), Reliance Industries (up 4%), Wipro (up 3%) and Reliance Communications (up 2.98%). Prominent losers were Bajaj Auto (down 2.65%), Bharti Airtel (down 2.27%), Tata Motors (down 1.90%), HDFC Bank (down 0.82%) and Cipla (down 0.78%).
The sectoral space wore a green coat today. The top sectoral gainers were BSE Consumer Durables (up 3.20%), BSE Bankex (up 2.83%), BSE Oil & Gas (up 2.51%), BSE Metal (up 1.59%) and BSE PSU (up 1.42%).
Markets in Asia ended mostly lower, as investors chose to take profits off the table on renewed speculation after the release of Chinese trade data that the government might hike rates once again. China's trade surplus stood at $22.9 billion in November, the customs bureau said today. Exports rose 35% from a year earlier, while imports grew 38%, higher than analysts' estimates. A cut in Ireland's credit rating also weighed on investors.
Just as the markets in Asia and India closed for the day, the Chinese central bank announced a hike in the reserve requirement ratio by 50 basis points. The revision comes into effect from 20th December.
The Hang Seng was down 0.04%, the Jakarta Composite tanked 1.01%, the KLSE Composite declined 0.92%, the Nikkei 225 fell 0.72%, the Straits Times was down 0.77%, the Seoul Composite lost 0.14% and the Taiwan Weighted shed 0.40%. On the other hand, the Shanghai Composite jumped 1.07%.
The government announced today that industrial output in October rose by 10.8% on the back of healthy performance of sectors such as automobile, electronic goods and power. Industrial production, which crossed 15% in July, had dipped to 6.91% in August and further to 4.4% in September.
It was back in double-digit figures at 10.8% in October, better than 10.1% in the corresponding month a year ago. The government attributed the rise in the Index of Industrial Production (IIP) to improved performance of ship building, power equipment and generators manufacturing.
The US markets closed with modest gains overnight with two of the three key indices ending higher on good economic news. Investors kept a watch on the bond market following a slump in demand in recent days that prompted sharp gains in bond yields. In economic news, initial unemployment claims fell higher than expected last week. Besides, inventories of US wholesalers rose more than expected in October, while fast-growing sales also signalled some underlying support for the economy.
The Dow declined 2.42 points (0.02%) to 11,370.06. The S&P 500 Index added 4.72 points (0.38%) to 1,233. The Nasdaq gained 7.51 points (0.29%) to 2,616.67.
Foreign institutional investors were net sellers of stocks worth Rs1,296.30 crore on Thursday. On the other hand, domestic institutional investors were net buyers of stocks worth Rs827.92 crore.
The country's biggest iron ore miner NMDC (up 2.18%) today said it will partner with Russia's largest steel maker Severstal for setting up a 5 million tonnes steel plant in Karnataka.
The proposed plant will entail an investment of about Rs25,000 crore. According to sources, both the companies may have 50% stake in the JV. For the project NMDC has sought 2,500 acres of land from the Karnataka government, they added.
Fortis Healthcare (up 0.03%) today said it has taken over operations and management of Vivekanand Hospital and Research Centre in Moradabad. The development follows an agreement with the Moradabad Charitable Trust that runs the Vivekanand Hospital and Research Centre.
As per the agreement, while the trust will maintain the ownership of the hospital, Fortis will pay an undisclosed fee for running it, and revenues generated from the hospital will go to its account henceforth.
Public sector lender IDBI Bank (up 4.11%) has secured a $100-million ECA (export credit agency) line of credit from Germany's DZ Bank.
The $100-million fund, raised through the bank's Dubai International Finance Centre branch on 6th December, can be used to fund project imports from 24 west European nations, the bank's executive director and head of international banking, Melwyn Rego said.
GAIL India Ltd has proposed to set up 5,500km of gas connectivity over the next two-three years investing $4 billion.
"We have planned to add 1,000km of gas connectivity every year and in another two-three years we will be laying gas connectivity to around 5,500km across the country... We are investing $4 billion for these projects," GAIL India general manager (gas marketing) Rajendra Tiwari said. He hoped that that it would help reduce the production and demand gap in the country.
GAIL is in the process of laying additional pipelines in the Dadri-Bawana-Nangal and Chainsna-Jhajjar-Hissar region so as to serve the Northern market and this year alone around 1,000 km were laid, Mr Tiwari said.
On Friday, GAIL declined 0.67% to Rs493.60 on the Bombay Stock Exchange, while the benchmark Sensex closed 2.31% down at 19,242.36 points.
Everonn Education Ltd has launched Edupreneurs a novel project to promote people with entrepreneurial skills. Everonn Edupreneur targets 1,000 locations.
Everonn will be able to effectively address the issue of standardised content and course delivery by experts which will ultimately help students to overcome the hitherto existing gaps in learning. Each of these new education centres to be run by Edupreneurs will provide teaching content catering to students from pre-School to B-School. Through a carefully planned selection process, Everonn will mobilize Edupreneurs from cross sections of first and second generation business entrepreneurs. They will be Everonn's Ambassadors of Learning. Everonn will employ a combination of tools from the brick and mortar format to technology platforms for delivering content for which the VSAT network will form the backbone.
The VSAT-based education provides an ideal solution to the perennial shortage of teaching staff and will ensure a consistent learning experience through programming from a single location that can be beamed to multiple centres.
On Friday, Everonn Education declined 0.95% to Rs599 on the Bombay Stock Exchange, while the benchmark Sensex closed 2.31% down at 19,242.36 points.