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Markets ended firm on the first trading day of the week with buying visible in FMCG (fast moving consumer goods) and financial shares. The 30-share Sensex ended higher by 330 points at 27,702 and the Nifty surged 99 points to 8,324 levels.
The broader markets also remained supportive with the S&P BSE Mid-cap and Small-cap indices moving up 0.4 – 1%. The market breadth in BSE was positive with 1,557 shares advancing and 1,351 shares declining.
"Tracking global cues and recovery of Ruble, the markets opened with a positive note and later traded sideways, but recovered in the second half ahead of December futures and options expiry. Bouyed by a positive outlook from the recently concluded Fed meet, both Asian and European markets have entered a week, shortened by Christmas holiday, on a positive note. Amidst rising fear over a slowing world economy oil prices rose following reports that China could support Russia if needed. That said, as these are evolving issues, global vagaries would weigh all EMs," said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services in a note.
Foreign portfolio investors (FPIs) sold shares worth Rs 668.85 crore (net) during the previous trading session on Friday, as per provisional data. At 1543hrs on Monday, the rupee was trading at 63.22 versus Friday's close of 63.2950/3050.
Analysts expect the markets to will remain volatile this week as traders roll over positions in the futures & options (F&O) segment from December 2014 series to January 2015 series on Wednesday. The bourses will remain closed on Thursday on account of Christmas.
Global markets
World share markets extended their 'Santa rally' into a fourth day on Monday, as a recovery in beaten-down oil prices and the rouble and more calls for quantitative easing from the ECB helped lift sentiment.
There were also hopes that Greece could avoid destabilising snap elections after Greece's Prime Minister Antonis Samaras made a surprise offer to bring pro-European independents into the government if they backed his choice for new president.
Japanese stocks advanced on Monday as rebounding crude prices underpinned oil-related shares. The Nikkei benchmark ticked up 0.1% to end the day at 17,635.14, its highest closing level since Dec. 9.
FMCG stocks rally
Back home, BSE Bankex, FMCG and Power indices surged by almost 1.5%. Sectors like Auto, Consumer Durables, Healthcare, Metal, Oil & Gas and Realty gained between 0.5-1.4%.
From the financial space, HDFC, HDFC Bank, Axis Bank, SBI and ICICI bank rose between 1-3%.
HDFC Bank gained over 2% after Foreign Investment Promotion Board cleared its proposal to raise Rs 10,000 crore, ending months of struggle by India's most valuable bank by market cap to enhance its capital base.
The union cabinet recently approved a proposal to pare government's stake in public sector banks in a phased manner that will allow these lenders to raise up to Rs 161,000 crore from the market.
BHEL has achieved breakthrough by making maiden entry in the Turkish market; Bags Euro 16.96 million contract for Thermal Power Project in Turkey. The stock gained almost 3%.
Buzzing stocks
Jindal Steel and Power moved higher by over 6% after the company said it has raised Rs 500 crore by issuing 5,000 non-convertible debentures for cash to Kotak Mahindra Bank.
Other notable gainers were M&M, Coal India, NTPC, ONGC and Bharti Airtel.
The power generation sector would do well to unbundle state utilities and purchase power under the ‘cost-plus’ route, EY has said in a report on the power sector.
On the losing side, Hindalco, L&T, Infosys and Tata Steel fell between 0.1-1.2%.
Among other shares, Cairn India moved higher by 3%, extending its 4% gain in past two trading sessions on BSE, after crude prices surged from the lowest closing levels.
SpiceJet soared 17% to Rs 18.60, extending its Friday’s rally on BSE, on media reports the company could see a change of management and get new funds.
