Markets Close 1% Up On Positive Global Cues

The Indian markets opened on a flat positive note today, gained momentum in the afternoon trade on the back of positive global cues, and finally ended on a strongly positive note. Both the major indices, the Sensex and Nifty closed higher by 0.97% and 1.03% respectively. The global markets have provided some support to the Indian markets. Positive US data and China reporting GDP and retail sales numbers in line with expectations lifted the market sentiments.

Among the sectoral indices, Realty, Bankex and Consumer Durables closed higher with leading gains of 2.58%, 2.09% and 1.50% respectively. Others like Auto, Capital Goods, Power, PSUs and Metals closed in positive in the range of 0.84%-1.40%. Healthcare was the only index in the negative territory, down by 0.30%.

The European indices are currently trading on a mixed note, with FTSE and DAX up by 0.21% and 0.38% respectively, while CAC is marginally down by -0.02%. Earnings from heavyweight companies added pressure, while the growth data from China sent the mining stocks higher. Also, investors are awaiting the outcome of a two-day summit of the continent’s leaders in Brussels, though the markets are expecting little progress on how to solve the region’s debt woes.

Dow Jones Futures is currently trading higher by 10 points or 0.10% at 13499, indicating a positive sentiment in the US markets.

Back home, among the Sensex shares, SBI, Hero MotoCorp and L&T closed higher by 2.80%, 1.89% and 1.73% respectively. Other gainers like Bajaj Auto, Coal India, HDFC Bank, M&M, ICICI Bank, etc. closed higher by nearly 1.5% each. In the losers pack, Bharti Airtel, GAIL India and Sun Pharma were down by 1.63%, 0.57% and 1.73% respectively.

In individual stocks, Bharti Airtel fell by 1.63% to Rs 265.75 after the Telecom Commission recommended that incumbent GSM operators give up their spectrum in the 900 MHz band at the time of their licence renewals beginning 2014.

Axix Bank surged by 4.57% to Rs 1203.52, with the stock extending its 2-day gains on the back of strong Q2 results reported by the company.

Astra Zeneca closed higher by 1.56% to Rs 1625.75 on the back of the reports that the company has launch the heart drug Brilinta in India.

The market breadth remained positive for the day. Out of the 2998 stocks traded on the BSE, 1727 advanced, 1125 declined and 146 remained unchanged.

For tomorrow, we expect the markets to remain strong on the back of the global cues.