Markets sustain their rally

Indian stock markets have sustained their rally after witnessing positive developments on the European debt crisis. Sensex and Nifty continue to trade higher by over 2.8 per cent. As equity markets continue to rally, the Indian rupee has also seen gains of 48 paise at Rs 51.72 per US dollar in early trade.

Other Asian indices also continue to trade in the with Nikkei trading up by 1.93 per cent and Shanghai index up by 2.29 per cent. Hang Seng has rallied by 5.7 per cent as the Chinese government cut the reverse repo rate to ease the pressures on industrial production in the country.

Meanwhile European markets are showing a mixed trend. DAX and CAC are in the red while FTSE is trading marginally up.

All sectoral indices are trading up with Metal and Bankex having gained over 4 percent each. CD which remained an underperformer yesterday, has gained 3.11 per cent. Interest rate sensitive sectors like Auto and Realty are also seen trading in the positive.

Health care index is marginally up but continues to be pulled down by Lupin and Dr Reddys Lab. Ranbaxy, which has launched the generic version of Lipitor, is trading up by 2.68 per cent.

More than 30 stocks are still trading up by over 10 per cent in the market. Hindalco Industries, Tata Motors, GMR Infra, Sterlite Inds, ICICI Bank, Hindustan Zinc, SAIL and Pantaloon Retail are trading up by over 6 per cent.

Bharti Airtel and Hindustan Unilever are the only Sensex stocks trading in the red.

J Kumar Infra has bagged an order worth Rs 520 crore; but is still trading 0.85 per cent lower than its yesterday's closing. Valecha Engineering, which has commissioned its BOT road toll projects 11 month ahead of schedule, has gained over 19 per cent.

The overall market breadth, indicating the overall health of the market, is very positive. Out of total 2982 stocks 2081 stocks advanced while 806 stocks declined. A total 95 stocks remained unchanged.

In conclusion we at DSIJ believe the markets will continue to sustain the rally.