The markets staged a spectacular rally on the back of positive overseas cues. The Sensex regained the psychological 17k mark to end at 17,198, stronger by 272 points, and the Nifty closed at 5,122, higher by 89 points. Auto, pharma, metal and high-beta realty stocks were the flavour of the day.
The abating fears of Dubai’s debt woes impacting the global economy added to the feel-good factor around the world. Asian markets closed 1-2.5 per cent higher and European markets were up by more than a per cent.
The US markets rose on Monday, enabling the Dow to post its fifth straight monthly gain.
Today’s rally was an extension of the previous day’s gains, triggered by the better-than-expected GDP numbers. Auto majors such as Maruti, Hero Honda, Hyundai Motor and TVS Motors announced robust sales numbers for November.
Leading car maker Maruti Suzuki India recorded 60.1 per cent growth in car sales to 76,359 units in November this year, as compared to 47,704 units in the comparable month last year.
The country’s biggest two-wheeler maker, Hero Honda Motors, reported a 32 per cent jump in November sales at 3,81,378 units against 2,89,426 units in the same month last year.
And the second largest car maker, Hyundai Motor India, saw a 28.5 per cent growth in total sales in November at 55,265 units. Its domestic sales during November jumped by 92.8 per cent to 28,162 units against 14,605 units during the same month last year.
TVS Motors saw a 23 per cent growth in total two-wheeler sales in November, at 1,20,844 units against 98,402 units in the same month last year.
Domestic sales were 106,000 units during the month against 77,491 units last year, up 36.7 per cent, the company said in a statement.
Tata Motors (stronger by 6 per cent at Rs 700), Sun Pharma (higher by 5.6 per cent at Rs 1,538), DLF (put on 5.4 per cent at Rs 370) and M&M (up 4.8 per cent at Rs 1,078) were the leading gainers on the BSE. Reliance, Sterlite and Reliance Infrastructure gained between 3 and 4 per cent each.
Among the losers, Hindustan Unilever shed 1.9 per cent at Rs 279, BHEL lost 0.6 per cent at Rs 2,230 and ONGC gave up 0.2 per cent at Rs 1,196.
The market breadth was strong. Out of 2,824 stocks traded on the BSE, there were 2,027 advancing stocks, as against 723 declines.
Jagannadham Thunuguntla, Equity Head, SMC Global, said, “The good GDP numbers were a function of the stimulus packages announced by the government. However, the future economic and market trend would hinge on factors such as stimulus exit, unwinding of carry trades and how the Dubai crisis pans out.”
