Key share indices ended higher on Friday, amid strong global cues, after better-than-expected industrial output in November at 5.9% compared with a contraction of 4.74% in the previous month indicated signs of improvement in the economy boosting investor confidence.
The Sensex provisionally ended at 16,153 up 116 points and the Nifty ended at 4,867 up 36 points.
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Updated at 14:28
The markets have shed some of their gains but continue to trade in the green with the BSE Sensex at 16,106, up 69 points and the Nifty at 4,850, up 18 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.
The European markets started the session on a firm note with the major indices, CAC, DAX and FTSE 100 , having gained nearly 1% each.
According to Salil Sharma, technical analyst, partner kapursharma.com, "On the downside the Nifty has support at 4,800 and if it falls below this level then support is at 4,750. On the upside it has resistance at 4,920 and 5,040. It has given a breakout above 4,800."
Shares of metals and mining companies surged on the bourses in noon trades 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 4% or 435 points compared to 1% gain in the benchmark index Sensex at 1313 hours. Currently, the index is trading higher by 3% at 10,717.
Tata Steel, Coal India, JSW Steel and Jindal Steel & Power, up 2-7% each, are the notable gainers from the Metals' space.
BSE Realty and Bankex indices are trading higher by 1-2% each, are up on hopes that the RBI may cut interest rates in the following months.
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 4% each, after electricity sector reported a robust growth of 14.6% in November compared with 4.6% a year ago.
BSE IT is the major loser among the sectoral indices, having shed nearly 1%.
On the Sensex, Tata Steel, Coal India, Larsen & Toubro, Bharti Airtel and Jindal Steel, up 2-7% each, are the prominent gainers. The losers from the pack are GAIL, Bajaj Auto, HDFC, Sun Pharma Industries and Hero MotoCorp, down 2-3% each.
The overall market breadth is positive as 1,897 stocks have advanced against 798 declining ones, on the BSE.
