Sensex ends 127 points up; metals, telecom, realty, banks lead
05 Jan 2010
The benchmark Sensex rallied for the third consecutive day and closed with over 100 points gains, led by buying in metal post surge in CRB Index, telecom, banking, realty and private power companies' shares. However, Reliance Industries, NTPC, Maruti, Tata Motors, TCS, BPCL, Cipla, HUL, ACC, Ranbaxy Labs and Ambuja Cements witnesed selling pressure, which capped the gains to major extent. The broader indices continued to outperform the benchmark indices in today's trade as well.
The markets started on a positive note following good global cues. Asian markets ended higher on strong US cues; Hang Seng rose 2.09% and Jakarta gained 1.16%. Shanghai, Nikkei and Straits Times indices were up 0.25-0.9%. Taiwan Weighted was flat while Kospi fell 0.33%. The US markets ended 1.5% higher on Monday, on the back of positive manufacturing data from US and China. European markets and US index futures were flat in trade, at the time of closing of Indian equities.
Most today's rally was commodity driven. Metal stocks in largecaps were the big stars as Reuters CRB Index was up 2.1% on Monday; NALCO shot up 14.84%, as there was news in last week that government may split into three companies. JSW Steel rose 10.82%. Among others, Hindalco, Sterlite Industries, SAIL, Tata Steel and Jindal Steel were up 2.3-7.4%. The BSE Metal Index was up 3.84%.
The 30-share BSE Sensex closed at 17,686.24, up 127.51 points or 0.73% and the 50-share NSE Nifty went up 45.70 points or 0.87%, to settle at 5,277.90.
Hemen Kapadia of chartpundit.com said 5410 was the next target for the Nifty. "In terms of levels on the downside 5224 is a strong support while on upside 5274 is the first level, 5410 is the next level and in terms of the next couple of months or maybe till budget I think 5690 is a technical target for the Nifty which is a distinct possibility maybe till March", he has said. Parag Doctor of Chart Advice is looking at a range between 5300 and 5380 on the Nifty.
Today's new listing - Godrej Properties closed at Rs 534.55, up 9.09% over its issue price of Rs 490. Monday's listed JSW Energy witnessed huge buying interest, up 11.91% to Rs 112.75 as against issue price of Rs 100.
