Sensex above 16,000 on firm Asian cues

Benchmark Indices have surged ahead on broadbased buying demand tracking firm Asian cues. Asian markets are trading strong with Shanghai and Kospi surging by nearly 2% each. Hang Seng, Nikkei, Straits Times and Taiwan Weighed have moved up 0.5-1%. Shanghai gained post economic data. It’s exports went up 13.4% while imports rose 11.8% in December 2011 as compared to a year ago period.

Back home, appreciation in rupee value against dollar and buying among index heavyweight too has helped the markets to gather upbeat pace.

The rupee rose to a near four-week high on Tuesday as foreign funds bought government debt before limits on the amount of bonds they can buy expire in mid-January.

At 1130 hrs, the Sensex was up 267 points at 16,082 and the Nifty gained 82 points to 4,825. The Sensex and the Nifty are trading above the important levels of 16,000 and 4,700, respectively. 

All the 13 sectoral indices on BSE are trading in green zone. BSE Bankex is leading the strong rally, zooming by almost 2.5% on expectations that the RBI will start cutting interest rates in the coming months to support the slowing economy. SBI, ICICI Bank, HDFC Bank and HDFC surged between 2-4%.

Technology stocks like Infosys, TCS and Wipro spurted between 1-2% ahead of Infosys earnings on Thursday.

Capital Goods majors like L&T and BHEL surmounted between 2-3%.

BSE Metal index has gained 2%. Bhushan Steel, Sail, Hindalco Industries, Jindal Steel & Power, Nalco, JSW Steel, Hindustan Zinc, and Sterlite Industries have gained between 1-3%. Tata Steel has gained by nearly 1%. The company said yesterday that sales from its Indian operations fell 1.1% to 1.62 million tonnes in Q3 December 2011 over Q3 December 2010.

Among Auto segment, Bajaj Auto, Hero MotoCorp, M&M, Maruti Suzuki and Tata Motors have accelerated between 1-4%.

From the Oil & Gas space, index heavyweight Reliance Inds spurted by over 2%. ONGC has gained 1%.

Telecom major Bharti Airtel has gained by almost 2%.

The broader markets too are performing firm in line with benchmark indices, surging by nearly 2% each.

Education stocks like Everonn Education, Aptech and Educomp gained between 3-8%.

In the sugar space, Bajaj Hindusthan, Shree Renuka and Triveni Engg are up between 2-3%.

Gujarat Gas has surged 6% as major players entered into the race for buying BG stake in the company.

The market breadth in BSE remains extremely healthy with 1,845 shares advancing and 543 shares declining.