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Positive run in markets continues

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SI Reporter Mumbai

Positive movements continued in the markets as the Sensex touched 19,418 up almost 1%, while the Nifty also gained nearly 1% at 5,813 in response to the healthy IIP data released by the government earlier today.

With FY'11 industrial output growth expected to be close to 10%, as reiterated by Planning Commission Deputy Chairperson Montek Singh Ahluwalia, the markets trended in the green after yesterday's negative run.

Reliance Communications, ICICI Bank, JP Associates and Cipla up 4% were the top gainers, followed by Hindalco Industries up 3% and Reliance Industries up 2%.

The losers chart was led by Bajaj Auto down 3%, followed by Tata Motors, HDFC Bank and Bharti Airtel, all down 2%. The Tata motors and HDFC Bank ADRs had also closed in the negative yesterday.

The broader indices outperformed the benchmark index; the BSE Midcap was up 1.43% at 7,363, while the Smallcap was up nearly 2% at 8,903.

In the sectoral indices chart, Consumer Durables stocks continued to lead at 5,900 up 2%, followed by the Healthcare index at 6,535 and Oil & Gas index at 10,302, both up 1%.

Leaders in the Consumer Durables segment were Videocon Industries up 5% at Rs 209, followed by Bajaj Electricals at Rs 228 and Whirlpool at Rs 269, both up 4%.

Auto stocks were at the bottom of the sectoral chart, with the index trading flat down 0.47% at 9,849.

The Teck index was the other index in the negative at 3,729.

Deepak Singh Tanwar of Sound Equity and Consulting said, on the current market scenario, "The outlook is negative and the rally should be considered as corrective bounce. It will face strong resistance in the range of 5900-5950."

Ambareesh Baliga, Vice President at Karvy Stock Broking maintained, "Currently markets are at a tipping point, if this continues for a day or two more, then the situation in midap and smallcap stocks will spread to the large caps going forward. Then there too you see margin calls. If we hold on to these levels, expect sideways correction."

 

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First Published: Dec 10 2010 | 12:39 PM IST

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