Post session - Quick review

Revival of global risk appetite, which triggered global buying, sent Indian markets spiraling upwards on Wednesday. Trading strength to strength, barometer gauges amassed gigantic gains to snap the session of trade on an extremely awe-inspiring note. Encouraging global leads, underpinned demand for emerging market’s equities ahead of the European Central Bank policy meet on Euro-zone crisis scheduled later in the day, where the policy makers are expected to indicate a readiness to cut interest rates as soon as next month, but hold back from making any policy moves, after a Group of Seven emergency conference call on Tuesday failed to produce any concrete solution.

Stabilizing Indian rupee against American greenback, also spurred optimism at Dalal Street. Outperforming the global peers, 30 scrip sensitive index, Sensex, clocked over two percentage point gains, to end above the 16450 level, close to January 3,2012 high level. However, the index, after nearing 16500 level, retreated, to settle off from the high points of the day. Similarly, the widely followed 50 share index, Nifty, too facing stiff resistance near the 5000 level, contracted from the crucial bastion. Frontline indices of Indian equity markets, not only outperformed global peers, but also the broader indices, which went home with gains of over a percentage points. On the global front, Asian pacific shares puffed up gains as investors looked to European policymakers and the wider G7 to take decisive action to address the exacerbating euro zone crisis, after Spain warning of being shut out of credit markets. Meanwhile, much of prop up came from the European markets, which firmed up on expectation of fresh stimulus measures.

Closer home, bulls tightened their grip on infrastructure stocks, ahead of crucial meeting between Prime Minister Manmohan Singh and all key ministries to review the status of infrastructure sector, which could result in fresh steps to boost India's sagging infrastructure sector. Reacting optimistically to this were, Larsen & Toubro, Lanco Infratech, GVK Power and GMR Infrastructure. Meanwhile, fertilizer stocks, like Fertilisers & Chemicals Travancore (FACT), Rashtriya Chemicals & Fertilizers (RCF) and Chambal Fertilisers & Chemicals, rallied on reports that government may consider urea price hike of about 10%. Though, all the 13 sectoral indices, witnessed buying, but stocks from  Auto, Capital Goods (CG) and  Power raced ahead to emerge as leaders. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1839:901 while 126 scrips remained unchanged. (Provisional)

The BSE Sensex surged by 403.57 points or 2.52% to settle at 16,424.21. The index touched a high and a low of 16,494.50 and 16,100.36 respectively. All 30 stocks were seen advancing on the index (Provisional)

The BSE Mid-cap index gained 1.68% while Small-cap index ended up by 1.41%. (Provisional)

On the BSE Sectoral front, Auto up 3.75%, Capital Goods up 3.51%, Power up 3.38%, Metal up 3.00% and Bankex up 2.94% were the top gainers while there were no losers.

There top gainers on the Sensex were Tata Motors up 5.28%, Jindal Steel up 4.86%, Hero MotoCorp up 4.63%, L&T up 4.61% and Sterlite Industries up 4.11% while, there were no losers in the index. (Provisional)

Meanwhile, in its attempt to revitalize the dwindling growth in Asia’s third largest economy, industry body Confederation of Indian Industry (CII) has come up with a 10-point measures for economic revival that include monetary, fiscal and administrative actions. The industry body is of the belief that the government has to come out of the policy paralysis and take strong actions cohesively to avoid further deterioration the economy.

Expressing their concerns over sharp slowdown in GDP growth in the fourth quarter, CII felt that various measures like fast-tracking the implementation of Goods and Services Tax (GST) and simplifying foreign direct investment (FDI) regulations along with lifting FDI caps in the aviation, retail, defence and insurance sectors would be imperative for the economic revival.

The body also batted for strong monetary stimulus measures from the Reserve Bank of India and called for sharp reduction in both repo rates and CRR. It also supported the idea that government must take serious efforts to correct the current account deficit by encouraging exports and containing imports, arresting rupee slide, reducing subsidies, implementing financial sector reforms and removing bottlenecks in infrastructure growth.

Targeting an economic growth rate of 7.5% for the current financial year 2012-13 and 9 percent in 2013-14, the body expressed confidence in the nation’s growth potential and avowed that it is not impossible to achieve higher growth rates, provided the government takes corrective and timely measures to support the economic recovery.

India VIX, a gauge for market’s short term expectation of volatility lost 5.17% at 24.90 from its previous close of 26.26 on Tuesday. (Provisional)

The S&P CNX Nifty gain 123.85 points or 2.55% to settle at 4,987.15. The index touched high and low of 5,010.45 and 4,886.15 respectively. 47 stocks advanced against 3 declining ones on the index. (Provisional)

The top gainers on the Nifty were Tata Motors up 5.28%, Hero MotoCorp up 4.89%, Jindal Steel up 4.84%, Ambuja Cement up 4.55% and L&T up 4.45%.On the other hand, BPCL down 0.42%, Cipla down 0.36% and Dr. Reddy’s Lab down 0.21% were the only losers. (Provisional)

The European markets were trading in green, with France's CAC 40 up 1.80%, Germany's DAX up 1.50% and Britain’s FTSE 100 up 1.21%.