SENSEX
16454.30 +433.66
NIFTY 4997.10 +133.80
USD/INR 0055.65 +00.10
NASDAQ 2836.41 +58.30
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UPDATEDTIME 09.28 PM 06 JUNE 2012
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The Nifty surged
past intermediate resistance levels and closed near the psychological 5,000
mark led by gains in infrastructure, auto and banking stocks on the back of
positive domestic cues and global markets.
The market witnessed a broad-based rally on huge volumes and the Nifty registered its biggest percentage gain since January 3, 2012.
The market has been longing for some government action in terms of policy reforms to take the Indian growth story forward. Positive moves by the government such as sops for export-oriented companies, a scheduled high-level meeting of the Prime Minister with key ministers to clear pending infrastructure projects, the appreciating rupee and lower crude prices along with risk-on trade in the global markets boosted market sentiment.
"Reports indicated that the PM is meeting to discuss expediting infrastructure projects that have been delayed due to various reasons. Following this, infrastructure stocks were major gainers. Apart from this, hopes of rate cut by the Reserve Bank of India fuelled a rally in banking and auto stocks.
Market sentiment was further boosted by firm European markets.
The Nifty ended at 4,997.10, up 133.80 points, or 2.75 percent. It touched an intraday high of 5,010.45 and a low of 4,886.15 today.
The Sensex ended at 16,454.30, up 433.66 points, or 2.71 percent. It touched an intraday high of 16,494.50 and a low of 16,100.36 today.
This is a phenomenal rally which has not been seen for a long time. It doesn't seem to be only a short covering rally as buying is seen across sectors. It appears that strong hands are moving in as the indices are available nearly at 12.5x forward looking P/E multiples. We did not expect the Nifty to breach 5,000 today. In the process, it has moved above 13 and 21 DMA so a further upside can be expected in the coming sessions."
Once the 5,007-5,020 level is taken out, the Nifty faces strong resistance at 5,050-5,080. We would be better off once it crosses 5,100 as the index will then cross important technical zones.
Looking at the movement in equities and dollar/rupee, it appears foreign institutional investors are coming in. The rupee's appreciation is going to provide further strength to the market. If the dollar/rupee comes to the 55.10 level, it will bring a lot of investors back into the market.
The government has started taking action and it seems the policy paralysis is coming to an end. This will also be looked positively by the Street," Bose added.
The BSE Midcap Index was up 1.78 percent and the BSE Smallcap Index moved 1.48 percent higher.
On the F&O front, long positions are being added in the market, analysts said.
Nifty futures witnessed a strong recovery session of trade and closed with a robust gain of around 3 percent. A steep rise in future OI suggested addition of long positions in the market.
On the upside, Nifty futures face immediate resistance at 5,020. If they sustains above this level, then short covering towards 5,060-5,080 can be expected. On the downside, 4,920 would act as an immediate support, below which it can test 4,880-4,850 levels.
The market witnessed a broad-based rally on huge volumes and the Nifty registered its biggest percentage gain since January 3, 2012.
The market has been longing for some government action in terms of policy reforms to take the Indian growth story forward. Positive moves by the government such as sops for export-oriented companies, a scheduled high-level meeting of the Prime Minister with key ministers to clear pending infrastructure projects, the appreciating rupee and lower crude prices along with risk-on trade in the global markets boosted market sentiment.
"Reports indicated that the PM is meeting to discuss expediting infrastructure projects that have been delayed due to various reasons. Following this, infrastructure stocks were major gainers. Apart from this, hopes of rate cut by the Reserve Bank of India fuelled a rally in banking and auto stocks.
Market sentiment was further boosted by firm European markets.
The Nifty ended at 4,997.10, up 133.80 points, or 2.75 percent. It touched an intraday high of 5,010.45 and a low of 4,886.15 today.
The Sensex ended at 16,454.30, up 433.66 points, or 2.71 percent. It touched an intraday high of 16,494.50 and a low of 16,100.36 today.
This is a phenomenal rally which has not been seen for a long time. It doesn't seem to be only a short covering rally as buying is seen across sectors. It appears that strong hands are moving in as the indices are available nearly at 12.5x forward looking P/E multiples. We did not expect the Nifty to breach 5,000 today. In the process, it has moved above 13 and 21 DMA so a further upside can be expected in the coming sessions."
Once the 5,007-5,020 level is taken out, the Nifty faces strong resistance at 5,050-5,080. We would be better off once it crosses 5,100 as the index will then cross important technical zones.
Looking at the movement in equities and dollar/rupee, it appears foreign institutional investors are coming in. The rupee's appreciation is going to provide further strength to the market. If the dollar/rupee comes to the 55.10 level, it will bring a lot of investors back into the market.
The government has started taking action and it seems the policy paralysis is coming to an end. This will also be looked positively by the Street," Bose added.
The BSE Midcap Index was up 1.78 percent and the BSE Smallcap Index moved 1.48 percent higher.
On the F&O front, long positions are being added in the market, analysts said.
Nifty futures witnessed a strong recovery session of trade and closed with a robust gain of around 3 percent. A steep rise in future OI suggested addition of long positions in the market.
On the upside, Nifty futures face immediate resistance at 5,020. If they sustains above this level, then short covering towards 5,060-5,080 can be expected. On the downside, 4,920 would act as an immediate support, below which it can test 4,880-4,850 levels.
Among sectoral indices, the BSE Auto
Index was up 3.86 percent, the BSE Capital Goods Index rallied 3.63 percent,
the BSE Power Index advanced 3.49 percent, the BSE Bankex gained 3.01 percent
and the BSE FMCG Index moved 2.95 percent higher.
Tata Motors (5.41 percent), Hero MotoCorp (5.08 percent), Jindal Steel (4.87 percent), Reliance Infrastructure (4.62 percent) and Ambuja Cements (4.59 percent) were among the top Nifty gainers.
Cipla (0.34 percent), BPCL (0.26 percent) and Dr Reddy's Laboratories (0.21 percent) were the only index losers.
The rupee strengthened against the dollar on the back of gains in Indian stock markets. The partially convertible currency ended at 55.36, up 28 paise against its previous close of 55.64.
Shares of infrastructure-related companies were in action on reports that the Prime Minister is likely to discuss fast tracking of 8,000 km of road and expediting work on setting up 17 new major airports, including one in Navi Mumbai and three other international airports, in a ministerial meeting.
Projects worth around Rs 1.46 lakh crore are pending in power, steel, highways and cement sectors due to various regulatory issues, according to media reports.
Gammon India, Gayatri Projects, GMR Infra, IRB Infra, IVRCL, PBA Infrastructure, Supreme Infrastructure,Unity Infraprojects, etc., rose on hopes of some positive development at the meeting.
Brent crude prices stayed near $100 per barrel on reports of declining US stock piles.
The market breadth was positive on the NSE with 1,169 gainers and 319 losers.
Tata Motors (5.41 percent), Hero MotoCorp (5.08 percent), Jindal Steel (4.87 percent), Reliance Infrastructure (4.62 percent) and Ambuja Cements (4.59 percent) were among the top Nifty gainers.
Cipla (0.34 percent), BPCL (0.26 percent) and Dr Reddy's Laboratories (0.21 percent) were the only index losers.
The rupee strengthened against the dollar on the back of gains in Indian stock markets. The partially convertible currency ended at 55.36, up 28 paise against its previous close of 55.64.
Shares of infrastructure-related companies were in action on reports that the Prime Minister is likely to discuss fast tracking of 8,000 km of road and expediting work on setting up 17 new major airports, including one in Navi Mumbai and three other international airports, in a ministerial meeting.
Projects worth around Rs 1.46 lakh crore are pending in power, steel, highways and cement sectors due to various regulatory issues, according to media reports.
Gammon India, Gayatri Projects, GMR Infra, IRB Infra, IVRCL, PBA Infrastructure, Supreme Infrastructure,Unity Infraprojects, etc., rose on hopes of some positive development at the meeting.
Brent crude prices stayed near $100 per barrel on reports of declining US stock piles.
The market breadth was positive on the NSE with 1,169 gainers and 319 losers.
Regards
RAKESH MAKIN
+91, 9041667797(DIRECT),
9915684997
OFF 0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
Group mail id: makin97NSEtips@yahoogroups.co.in
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