Markets end an eventful day with gains
By Shrikant Akolkar |
2/2/2012 4:23 PM ThursdayIn a series of dramatic developments today, the Indian markets today saw a U-turn. Both the Sensex and Nifty trimmed their morning gains, rose with negatives again and closed with over 0.6% intraday returns. This return was mainly caused by the Supreme Court's ruling with regard to cancelling 122 2G licenses issued in or after 2008. Telecom stocks were seen under the pressure on this count, but Bharti Airtel gained by over 6% at the end of the day. Idea and Tata Communications were also up by about 2%.
Earlier, the Asian markets closed in the positive territory owing to strong global cues. The Chinese markets, Hang Seng and Shanghai, gained about 2% while Nikkei gained by 67 points or 0.76%.
The European markets also opened in the green. FTSE, however, has lost a few points and is trading marginally down. DAX and CAC continue to trade in the positives.
Dow Jones Futures is trading up by 0.02% at the moment, indicating a positive to flat sentiment in the markets.
| Benchmark Indices |
| Index | Closing | % Change |
| Sensex | 17,431.85 | 0.76 |
| Nifty | 5,269.90 | 0.65 |
| Hang Seng | 20,739.45 | 2.00 |
| Nikkei | 8,876.82 | 0.76 |
| Shanghai | 2,312.56 | 1.96 |
| Live |
| FTSE | 5,783.96 | -0.12 |
| CAC | 3,368.19 | 0.02 |
| DAX | 6,622.50 | 0.09 |
Back home, the Teck index surged by 2.08% at closing. IT stocks also surged by 1.53%. Metals, CG and Realty were also on the investors' radar and gained by over 1% each. The defensive indices HC, CD and FMCG shed few points and ended in the day with marginal losses.
| Sectoral Indices |
| Index | Close | Change(Pts) | Change (%) |
| Broad |
| MIDCAP | 5969.76 | 32.57 | 0.55 |
| SMLCAP | 6608.97 | 35.39 | 0.54 |
| BSE-100 | 9098.88 | 59.69 | 0.66 |
| BSE-200 | 2129.33 | 14.1 | 0.67 |
| BSE-500 | 6650.48 | 45.48 | 0.69 |
| Sectors | | | |
| TECk | 3545.37 | 72.33 | 2.08 |
| IT | 5859.77 | 88.48 | 1.53 |
| METAL | 12006.09 | 166.18 | 1.4 |
| CG | 10231.88 | 135.99 | 1.35 |
| REALTY | 1746.69 | 21.58 | 1.25 |
| POWER | 2129.59 | 20.32 | 0.96 |
| PSU | 7405.36 | 59.36 | 0.81 |
| BANKEX | 11480.38 | 52.51 | 0.46 |
| OIL&GAS | 8591.89 | 31.06 | 0.36 |
| AUTO | 9448.67 | 19.97 | 0.21 |
| FMCG | 4062.3 | -10.74 | -0.26 |
| CD | 5806.94 | -22.27 | -0.38 |
| HC | 6304.98 | -39.04 | -0.62 |
21 of the 30 Sensex stocks made it to positive territory by the end of the day. Bharti Airtel was the top gainer, as it is clear now that the court's verdict will decrease some competition for the company and it will have an advantage going ahead. Realty major, DLF, gained over 4%. Sterlite, Wipro, GAIL India and Hindalco Industries also gained over 3%. Cipla, on the other hand, lost 2.53% by closing. ITC and Jindal Steel also lost by over 1%. Despite its ongoing buyback offer, RIL traded almost flat for whole day.
The market breadth, which indicates the overall health of the market, remained extremely positive. Out of a total of 3324 stocks traded on the BSE, 1769 advanced, 1424 declined and 131 remained unchanged.
| Advance-Decline Table |
| Index | Advances | Declines | Unchanged |
| BSE 30 | 21 | 9 | 0 |
| BSE 100 | 59 | 40 | 1 |
| BSE 200 | 119 | 79 | 2 |
| BSE 500 | 292 | 201 | 7 |
| Others | 1278 | 1095 | 121 |
In conclusion, the markets have continued the bull run that started with the new year. In the last 4 trading days alone, the markets have added over 3%. We advise our investors to start accumulating fundamentally good stocks in their portfolio. We will keep our recommendations and analyses coming in through our flagship magazine Dalal Street Investment Journal as well as through our website www.DSIJ.in.
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