Markets end day with strong rally

After opening on a positive note, the Indian markets extended their early gains in the afternoon session and closed on a strong positive note. Both the Sensex and Nifty closed with gains of 1.98% and 2.14% respectively. A lower inflation figure and positive global markets led the rally today. Concerns over the Greek debt were somewhat eased by China, which will help the European countries in resolving the debt crisis.

Other Asian Market closed on a positive note. After the austerity measures taken by the Greek government markets mood was quiet positive.

The European markets today too opened on a positive note on back of the better than economic data from Germany and France. Moreover the austerity plan of European leaders and further china lending its help to resolve Greek debt crisis improved the investor’s sentiment.

Dow Jones Futures is currently trading 60 points or 0.47% up at 12878, indicating a positive sentiment in the US markets.

Back home, all the BSE sectoral indices barring Oil & Gas closed up with gains between 0.06%-5.01%. Realty, CG and Power are leading with gains of 5.01%, 4.01% and 3.56% respectively. CD, Metals and Teck are also up between 3.07%-3.55%. Oil & Gas closed down by 0.32%.

Among the Sensex shares, Tata Motors is leading with gains of 6.91% after reporting a strong Dec quarter mainly on account of JLR's performance. Others like BHEL, Bharti Airtel, DLF, GAIL India, HDFC, HDFC Bank, ICICI Bank, L&T, M&M, Maruti Suzuki, Sterlite and Tata Power are trading with gains between 2%-6%. In the losers pack, HUL and RIL are both down by 0.75% and 1.43% respectively.

The market breadth, which indicates the overall health of the market, was positive. Out of the 3409 stocks traded on the BSE, 2187 advanced, 1120 declined and 102 remained unchanged.

In conclusion, we expect the markets to remain positive as investors are hoping for a recovery in the domestic economy and for some positive news from the US and European markets.