t was a power packed day for Indian markets on Thursday as investors bought aggressively following a surge in global markets. There are hopes that world leaders would come out with some promising measures to help global economy in the ongoing G20 meet.
The stage for the upmove was set by the promising factory and home sales data while markets ignored job losses in the US. Rise in auto sales in the month of March and pick up in cement industry back home showed signs that the government’s two bailout packages were paying off.
Traders who had been short on the markets had to cover their positions while fresh long build ups were made ahead of a long weekend while G20 meet is on. With the kind of upmove global markets have witnessed, some encouraging news is expected from the meet said a dealer from a local broking firm.
It was the highest close for National Stock Exchange’s Nifty since October. The benchmark broke out of the strong resistance of 3200 to close at 3211.05, up 150.7 points or 4.92 per cent. The index touched a high of 3228.75 and low of 3061.05.
Bombay Stock Exchange Sensex closed at 10348.83, up 446.84 points or 4.51 per cent from Wednesday. The index hit an intra-day high of 10432.31 and low of 10107.25.
We had a target of 3240 on the Nifty and we nearly achieved it. The pattern is strong and possibly it may break 3240. If that happens then Nifty may test its 200 MDA which is 3400, said Manas Jaiswal, Senior technical analyst, Emkay Shares and Stock Brokers.
Tier II and III stocks played catch up the frontline counters. The BSE Midcap Index gained 3.77 per cent and BSE Smallcap Index moved up 2.91 per cent.
Significant gains in DLF (15.08%), Jaiprakash Associates (13.23%), Tata Motors (12.84%), Reliance Communications (9%), ONGC (8.28%) and Hindalco Industries (7.03%) supported the Sensex rally. Hindustan Unilever, down 2.19 per cent, was the lone laggard in the 30-share index
Buoyed by improved demand, cement makers raised prices by Rs 3-7 per 50-kg bag across the country from Wednesday. With this, the retail cement prices have gone up to Rs 260 a bag. Big players such as ACC, Ambuja Cements, Grasim and UltraTech have communicated about the price hike to dealers. Biggest gainers in the space included JK Cement, Madras Cement, Binani Cement and JK Lakshmi Cement.
Shares of Tata Motors were in the limelight after the auto major’s March sales figures showed a 24 per cent rise from a month ago in the domestic market which suggested revival of demand, thanks to the financial stimulus announced by the government in February. The stock surged nearly 13 per cent to end at Rs 202.95.
Meanwhile, Larsen & Toubro added yet another contract to its kitty, adding five contracts in the last four days, aggregating Rs 5,177 crore. These contracts are mostly from government entities such as Nuclear Power Corporation, Power Grid Corporation, Rail Vikas Nigam and MRPL. The stock climbed 6.65 per cent to Rs 717.25.
Market breadth remained extremely positive on the BSE with 2,014 advances against 535 declines while 69 shares remained unchanged.
Equity markets are in for a long weekend as they are shut Friday on account of Ram Navmi festival.
Source: Economic Times, New Delhi Edition