Sensex Soars 300 Points, Nifty Gains 90

The Indian markets have zoomed up this morning, taking positive cues from the global markets. Both the indices are trading higher. The Sensex is up almost 300 points and Nifty has gained 90 points. All the sectoral indices are trading higher, with Metals and Oil & Gas leading with more than 2% gains. Bankex, Capital Goods and Realty are also trading higher by more than 1%.

The markets saw a run-up after ECB President Mario Draghi backed up his promise to do whatever it takes to defend the euro. Draghi announced a new and potentially unlimited bond-buying program aimed at lowering the painfully high borrowing costs for stressed member states.

The other Asian markets are also trading higher, with the Hang Seng and Nikkei up by almost 2% each. Shanghai rose 4% to the 2140 levels. Media reports said that China’s top economic planners approved another batch of major infrastructure-investment projects yesterday, in addition to the more than two dozen subway and urban-rail initiatives announced a day earlier.

All the BSE 30 stocks are trading positive. Metals major Tata Steel is leading the gainers list, with the stock up 3.92% at Rs 364.40. Other stocks in the group like Hindalco, Sterlite Industries and Jindal Steel are trading higher by more than 2% each. ICICI Bank, Tata Motors, RIL, L&T, ONGC and Bajaj Auto are trading higher in the range of 2%-3%.

Stocks like ITC, Coal India, TCS, Wipro, HUL, NTPC, Hero MotoCorp, HDFC Bank, etc. are also trading higher.

The market breadth, which indicates the overall health of the market, is very strong. On the BSE, 1660 shares advanced, while 616 shares have declined, 89 shares are unchanged.

We expect the positive bias to continue in the day's trades.