Key share indices ended higher on Friday amid strong global cues, after better-than-expected industrial output in November, compared to October, indicated signs of improvement in the economy, boosting investor confidence. India's November 2011 industrial production grew 5.9% compared to a contraction of 4.74% in the previous month.
The Sensex ended at 16,155 up 117 points and the Nifty ended at 4,866 up 35 points.
Earlier in the day, the BSE benchmark index touched the day's high at 16,257 and the day's low at 16,050.
Meanwhile, European markets started the session on a firm note with the major indices, CAC, DAX and FTSE 100, having gained nearly 1% each. The shares rose over positive comments on the region's outlook from the European Central Bank and the success of Spain's bond auction, with attention focused on Italy's first debt sale of the year.
In Asia, Japan's Nikkei share average climbed to a one-week high on Friday, rising above the key threshold of its 25-moving average after smooth European debt auctions prompted buying of exporters, while the market remained on edge ahead of US corporate earnings. The index ended higher by 1.4% at 8,500. The Shanghai Composite index ended down 1.3%, while the Hang Seng index ended higher by 1%.
Back home, shares of metals and mining companies surged on the bourses after LMEX, a gauge of six metals traded on the London Metal Exchange (LME), rose 2.16% to close at $3,498.60 on 12 January 2012. The Bombay Stock Exchange (BSE) metal index, the largest gainer among sectoral indices, rallied as much as 3% or 334 points.
Tata Steel, Coal India, Jindal Steel & Power and Steel Authority of India, up 2-7% each, were the notable gainers from the Metals' space.
BSE Capital Goods index gained nearly 3% at 9,297 after November’s capital goods output improved significantly to -4.6% from October’s figure of -25.7%. From the pack, Suzlon Energy, Alstom Projects India and SKK India, up 8-9% each, were the notable gainers.
Shares of power generation and power equipment makers – Coal India, Reliance Power, Tata Power, Torrent Power, Suzlon Energy, Areva T&D India, Jaiprakash Power Ventures and Alstom Projects India extended gains on Friday to rise over 2% each, after electricity sector reported a robust growth of 14.6% in November compared with 4.6% a year ago.
Interest-rate sensitives, BSE Realty and Bankex indices traded higher by 1-2% each, on hopes that the RBI may cut interest rates in the following months, to support the slowing economy.
BSE Consumer Durables, Oil & Gas and IT indices, ended marginally lower.
On the Sensex, Tata Steel, Coal India, Larsen & Toubro, NTPC and Jindal Steel, up 3-7% each, were the prominent gainers. The losers from the pack were GAIL, Bajaj Auto, Maruti Suzuki, Hero MotoCorp and Sun Phrama Industries, down 1-3% each.
The overall market breadth was positive as 1,896 stocks advanced against 902 declining ones, on the BSE.
