Benchmark share indices gained over 2% on Tuesday to end at 1-month highs, on the back of positive cues from Asia and Europe, led by index heavyweight Reliance Industries and financial shares.
The 30-share Sensex provisionally ended up 2.3% or 356 points at 16,171 and the 50-share Nifty ended up 2.3% or 108 points at 4,851.
On December 9, 2011, the Sensex had ended at 16,213.46 and the Nifty had ended at 4,866.70.
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(Updated at 14:29)
Markets have extended their gains in the noon trades on broadbased buying demand with the Sensex and the Nifty surging by over 2% each. Interest rate sensitive counters are witnessing strong buying demand on expectations that the RBI will start cutting interest rates in the coming months.
Asian markets ended firm with Shanghai outperforming everyone with 2.7% rise post robust economic trade data. Meanwhile, European markets have opened firm.
At 1430 hrs, the Sensex was up 317 points at 16,133 and the Nifty gained 97 points to 4,840. The Sensex and the Nifty were trading above the important levels of 16,100 and 4,800, respectively. The Sensex has hit 16,100 mark, its highest level since 14 December 2011.
On the sectoral front, Oil & Gas, Capital Goods and Banks are witnessing consistent buying demand, all surging between 2-3%.
Shares of oil marketing companies like BPCL, HPCL, IOC and GAIL, along with a private sector refiner, Reliance Industries, are in focus today as BG Asia Pacific Holdings Pte Ltd (BG) starts its stake sale process in Gujarat Gas Company.
According to reports, all the above-mentioned companies are likely to submit non-binding bids for BG’s 65.12% stake in Gujarat Gas Company, the country’s largest natural gas distributor by sales. BG has roped in Citigroup to advise on the potential stake sale.
Index heavyweight Reliance Inds has spurted by 3% to Rs 738.
Banking and financial shares like SBI, ICICI Bank, HDFC Bank and HDFC have surged between 2-5% on expectations that the RBI will start cutting interest rates in the coming months to support the slowing economy.
Capital Goods majors like L&T and BHEL have surmounted between 2-3%.
Auto majors like Tata Motors, Bajaj Auto, Maruti Suzuki and Hero MotoCorop have accelerated between 2-4%. Auto stocks have firmed up as car sales in India rose an annual 8.5% in December, an industry body said on Tuesday, the second consecutive monthly rise as the industry continued to rebound from record falls in sales in late 2011.
Technology stocks like Infosys, TCS and Wipro maintain the positive bias ahead of Infosys earnings on Thursday.
Telecom major Bharti Airtel has zoomed by 3%.
The broader markets maintain the strong momentum, both surging by nearly 2% each.
The market breadth in BSE remains extremely firm with 2,063 shares advancing and 622 shares declining.