The BSE benchmark went up by 260.42 and closed at the level of 16,676.75 near day's high; this was a rally of 1.59%. NSE Nifty too went up by 1.65% or 81.40 points to 5,001.00 level. Positive global cues helped the indices climb up.
Among the sectoral indices of BSE, it was Metal which led the rally with an increase of 3.74%. Realty, BankEx, IT, TECk and HC (Health Care) all increase between 1.5-3.62%. The only sector underperformed and ended negative was FMCG with (-0.32%).
In the last leg of trading, among the 30-stocks comprising Sensex, DLF went up by 6.42% followed by Jindal Steel at 5.34%. Meanwhile the stock which fell the most in the index was ONGC (-4.29%) after the company's chairman A.K. Hazarika said that the company's board of directors have approved a draft prospectus for a follow-on public offer (FPO).
The NSE Nifty hit a high of 5,000.95 in intraday trade, its highest level since 18 August 2011. On the Nifty also the biggest loser was ONGC (-4.09%) followed by GAIL (-0.83).
The biggest gainers on Nifty were SesaGoa, DLF and HCLTech which gained by 11.05%, 6.78% and 6.03% respectively.
Sensex at 184 point. Markets are still upbeat
The Sensex was up by 184.29 or 1.12% to 16,600.62, meanwhile Nifty increased to 4,975.75 by 56.15 or 1.14 %.
The petrochemical majot Reliance Industries (RIL) recieved attention by investors as it rose 3.87% on the bourse. RIL added 2.8 lakh shares in the open interest.
The upside of the market was limited as profit booking was witnessed in the market.
European markets too started on a supportive mode. France's CAC and Germany's DAX were up over 0.5%. Britain's FTSE increased by 2.8%.
Among the sectoral indices on the BSE, Realty, Metal and Bankex went up 1.5-3.5%.
Among largecaps, Sesa Goa, DLF, Tata Steel, Reliance Communications, Jaiprakash Associates, Reliance Industries and Sun Pharma were top gainers, which rallied 3-5%.
However, ONGC lost 4%. L&T, ITC, Bajaj Auto, BPCL and GAIL were down.
The Sensex and Nifty are volatile
The benchmarks, Sensex and Nifty, fell on profit booking and fears of rate hikes post release of GDP numbers. The BSE Sensex was trading at 16,555.01 up 138.68 points and the S&P CNX Nifty rose 45.45 points to 4,965.05.
Many analysts consider the rally as relief rally on the perception of oversold, and hence it will be short-lived.
GDP numbers show, that the Indian economy grew only 7.7% during the first (April-June) quarter of fiscal year 2012. During the same period in 2010 the economy grew by 9.3%.
Among the Sensex stocks, Bajaj, ITC, L&T, Maruti Suzuki, NTPC, ONGC, Sterlite Industries and Tata Power were trading in the negative territory.
Meanwhile the Stock that went up the most is tata Steel 4.9% and ONGC fell the most to -4.35%.
Among the Sectoral indices on BSE FMCG, PSU and Consumer Goods were in the red. Realty was the sector which had gained the most by 2.62%.
Market opens on a high note
The benchmark of the Bombay Stock Exchange, Sensex opened 200 points higher but then the number eased to gains of 174.09 points at 16,590.42 levels reflecting 1.06%.
The NSE benchmark S&P CNX Nifty too tread a similar path, it opened with gains of 1.09% and then pared to 1% gain with addition of 49 points at 4968.6 level.
There are two possible reason for this behavior, the first was to get out of the market and wait till the gross domestic product (GDP) data is announced. The second possible reason could be profit booking which led the fall from the day's high.
GDP, which shows the health of a country's economy, for the first quarter of FY11, analysts expect it to be lower than 9.3% which was achieved in 2010 for the same period.
Financial, realty, technology, telecom and Anil Dhirubhai Ambani Group's stocks were still on buyers' radar. Even Reliance Industries was quite supportive, gaining 2%.
However, shares of state-run ONGC collapsed as the company is likely to launch its follow-on public offer on September 20. The stock fell nearly 5%.
ITC, SAIL, NTPC, Kotak Mahindra Bank, Bajaj Auto, Hindalco and ACC were other losers, which slipped on profit booking. Maruti, was also in red die to reports of unrest at the Manesar Plant.