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Markets surged for the second straight day to end over 2.5% higher, amid firm global cues, after the steep hike in natural gas price led to a buying spree in energy shares and shortcovering in financials. A strengthening rupee also aided sentiment.
The 30-share Sensex ended at 19,396 up 520 points or 2.75% and the 50-share Nifty ended at 5,842 up by 160 points or 2.81%. The Sensex and the Nifty reached an intra-day high of 19,433 levels and 5,842 mark, respectively.
INDIAN RUPEE
The rupee appreciated against the US dollar after strong gains in equities and lower current account deficit (CAD). The dollar was quoted at Rs 59.30 against a close of $60.19 yesterday.
GLOBAL MARKETS
Japan's Nikkei share average rose 3.5% to its highest close this month, helped by optimism that China on that the U.S. Federal Reserve will not soon rein in its stimulus measures and by encouraging Japanese economic data.
Modest gains in Asian markets also lifted the mood as the benchmark Nikkei ended 463.77 points higher at 13,677.32, the highest close since May 31. The index gained 3.4% for the week, extending its winning streak to two weeks, after a confidence-sapping sell-off that began last month.
Concerns over China's credit crunch continued to subside with Beijing's central bank pledging to ensure reasonable lending growth and stable markets.
GOLD
Meanwhile, gold fell below $1,200 on Friday to its lowest since August 2010 and is on track to record its worst quarter since at least 1968 on persistent worries over the US Federal Reserve's plan to wind down its monetary stimulus.
SECTORS & STOCKS
BSE Metal index zoomed by nearly 5% followed by counters like PSU, Capital Goods, Oil & Gas, Auto, IT, Power, Realty and Banks, all gaining by 1-4% each.
Coal India ended higher by 5.6% at Rs 303 on reports that the Cabinet has agreed to set up a coal regulator that will monitor the supply and pricing of the fuel.
Shares of oil and gas companies ended higher on BSE after the Cabinet Committee of Economic Affairs (CCEA) agreed to raise gas prices to US$8.4/mmbtu, effective April 2014, for a period of five years.
Oil and Natural Gas Corporation of India (ONGC), Reliance Industries and Cairn India were up between 3-4% on BSE.
Financial shares were up on short covering and bargain hunting after the recent correction. HDFC Bank, HDFC, ICICI Bank and SBI increased 3-4%.
JSPL was the top Sensex gainer, up nearly 8%. BHEL, Sterlite, Tata Power, Bajaj Auto, GAIL, Tata Motors and Hindalco gained between 4-7%.
Among broader markets, BSE Midcap and Smallcap indices ended 1-2.3% higher.
The market breadth in BSE ended positive with 1,535 shares advancing and 859 shares declining.
SMART MOVERS
Crompton Greaves rallied 9% to Rs 87 after its board approved the buyback of the company’s equity shares at a maximum price of Rs 125 per share via open market.
Shares of Gitanjali Gems were locked in lower circuit for the fifth consecutive day, down 10% at Rs 237 on BSE, despite of strong gains in the broader market.
Shares of fertilizer companies moved higher by upto 10% after the Finance Minister, at a press conference today, said that the government would consider offering subsidies to power and fertiliser industries to soften the impact post the steep hike in natural gas prices from April 1.
"The power and fertiliser ministries have raised the issue. We can look at fixing the input costs for these sectors. The issues will be addressed in course of time," the Reuters report suggests quoting Finance Minister P. Chidambaram.
Among the individual stocks, Chambal Fertilisers, Rallis India, RCF and National Fertilisers gained between 6-9%.
JMT Auto was locked in upper circuit of 5% at Rs 123 on NSE after Amtek Auto has made an open offer at price of Rs 149 per share.
Shasun Pharmaceuticals rallied 12.5% as the company's operations at its Pondicherry facility have been resumed after the workers called off strike.
Shares of IFCI, India Infoline and Bajaj Finance surged 1-18% after their respective boards gave approval for applying to the Reserve Bank of India (RBI) for bank licences.
YES Bank gained almost 4% after Cabinet Committee on Economic Affairs (CCEA) has given its approval for increasing its foreign holdings to 60%.
