Post session - Quick review

Thursday proved to be another terrific day for the markets after consolidating in last session. The bulls barged in with renewed vigor and contained their momentum throughout the day. The indices made a gap-up start taking cues from the global markets as the US indices surged overnight on getting good earnings and economic reports, while the Asian markets followed them and on some supportive cues from the local front moved higher. On the same time the European markets gained to near their five month high ahead of France and Spain’s bond sell since the S&P downgrade.

Meanwhile, the domestic markets recovered from their pause of last session and made a good start with the benchmarks touching their crucial psychological levels of 5000 (Nifty) and 16600 (Sensex) in very early trade, there was buying all across the markets, with commodities stock taking the lead following their global counterparts on reports that IMF is seeking to boost its war chest by $600 billion to help countries reeling from the crisis. IMF stated that it is looking to raise around $500 billion in additional lending resources, including a $200 billion commitment that euro area governments announced last year. The new target is based on the IMF's estimate of $1 trillion in potential global financing needs in the coming years. The other sector that surged in the day was realty, expecting similar demand appreciation with the economic recovery. While, the power stocks came into jubilant mood after a high level delegation comprising top corporate leaders of the power industry met Prime Minister yesterday, PM has given full assurance to address all their issues in a credible and commercially sustainable way, pledging a practical, pragmatic and viable solution to the industry's problems. Though there was upmove in whole rate sensitive sectors’ as the weekly food inflation number measured by the Wholesale Price Index (WPI), remained in the negative terrain for the third straight week for the week ended January 7, 2012 at -0.42% from its previous levels of -2.90% for the week ended December 31. There was slew of good earnings announcements that kept the markets spirit higher, IT company Mindtree reported 98.69% rise in its December quarter profits, Bajaj Auto reported 19% rise in its profits to Rs 795.19 crore, while the banking major HDFC Bank posted a profit growth of 31.4% and its NIM increased by 12.2%. The other two wheeler major, Hero Moto Corp came up with better than expected numbers, its profit for the December quarter expanded by 43%. Meanwhile, the IT and technology sectors remained in somber mood throughout the day and closed with loss of about a quarter percent. On the same time the broader markets outperformed their larger peers.

The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1714:1045 while 165 scrips remained unchanged. (Provisional)

The BSE Sensex gained 181.95 points or 1.11% and settled at 16,633.42. The index touched a high and a low of 16,662.06 and 16,572.10 respectively. 21 stocks advanced against 9 declining ones on the index (Provisional)

The BSE Mid-cap index gained 1.36% while Small-cap index was up by 1.25%. (Provisional)

On the BSE Sectoral front, Realty up 3.54%, Metal up 2.72%, Power up 2.53%, Bankex up 1.80% and Health Care up 1.59% were the top gainers while IT down 0.53%, TECk down 0.50% and FMCG down 0.13% were the only losers.

The top gainers on the Sensex were Sterlite Industries up 6.90%, Tata Power up 5.83%, Hindalco Industries up 4.70%, DLF up 4.52% and NTPC up 4.16%.

On the flip side, BHEL down 2.53%, M&M down 1.82%, Bharti Airtel down 1.04%, Infosys down 0.71% and ITC down 0.38% were the top losers in the index. (Provisional)

India’s weekly food inflation, measured by the Wholesale Price Index (WPI), continued to languish in the negative terrain for the third straight week for the week ended January 7, 2012 but rose to -0.42% from its previous levels of 2.90% for the week ended December 31. The rise in inflation can largely be attributed to rising demand for primary articles including both food and non-food items.

The sharp slump in the rate of price rise of food items in last two months is evident because of the high statistical base of the last year. The Indian central bank is scheduled to meet for its third quarterly monetary policy review on January 24 and it is widely expected that the Reserve Bank may refrain from its aggressive monetary tightening measures as the WPI inflation has primarily been on a declining trend.

According to the data released by the Ministry of Commerce and Industry, the index for ‘Food Articles’ group rose by 0.1% to 190.9 from 190.8 for the previous week due to higher prices of jowar and maize (3% each), bajra, masur and poultry chicken (2% each) and barely, arhar, moong and fish-marine (1% each).  However, the prices of tea (2%) and egg and condiment & spices (1% each) declined.

The index for ‘Non-Food Articles’ group rose by 0.9% to 182.6 from 181 for the previous week due to higher prices of gaur seed (4%), flowers, rape & mustard seed, soyabean and niger seed (3% each), raw cotton (2%) and raw jute and linseed (1% each).  However, the prices of raw rubber (4%), sunflower (3%) and castor seed (1%) declined.

As a result, the index for ‘Primary Articles’, which accounts for 20.12% of the WPI, rose by 0.3% for the week ended January 7 to 199.1 from 196.6 for the previous week. The annual rate of inflation, calculated on point to point basis, stood at 2.47% for the period under consideration as compared to 0.51% for the previous week.

Meanwhile, the index for Fuel & Power group, which carries a weightage of 14.91% in WPI remained unchanged at its previous closing levels of 172.7 in the week while annual rate of inflation calculated on point to point basis too stood unchanged at 14.45% in the first week of the year 2012.

India VIX, a gauge for market’s short term expectation of volatility lost 4.40% at 21.68 from its previous close of 22.68 on Wednesday. (Provisional)

The S&P CNX Nifty gained 59.25 points or 1.20% to settle at 5,015.05. The index touched high and low of 5,023.80 and 4,991.40 respectively. 41 stocks advanced against 9 declining ones on the index. (Provisional)

The top gainers on the Nifty were Reliance Infra up 10.46%, Tata Power up 6.54%, Sterlite up 6.30%, JP Associates up 6.06% and NTPC up 4.86%.

On the other hand, BHEL down 2.69%, M&M down 1.47%, Bharti Airtel down 1.33%, Siemens down 0.89% and Infosys down 0.84% were the top losers. (Provisional)

The European markets were trading on a mixed note, with France's CAC 40 up 0.57%, Germany's DAX down 0.23% and Britain’s FTSE 100 down 0.01%.

Asian shares rose to their one-month high on Thursday following Wall Street gains amid positive US economic data and on hopes that the International Monetary Fund would boost its resources to help tackle the euro zone debt crisis. However, Australian dollar took a hit after a mixed jobs report disappointed markets. While Japan's Nikkei average rose as much as 1.4% to a five-week high. Asian credit markets were calm. Chinese market was up with report that China’s central bank is allowing a limited increase in first-quarter lending by the five biggest banks and the nation’s banking regulator is weighing a plan to relax capital requirements.

Markets in Taiwan remained closed for a public holiday.