Post Session- Sensex ends up 2.2%, regains 16K level amid robust global cues Analysis for Jan 10, 2012

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Today, the domestic benchmarks closed on a robust note, surpassing the psychological 16K mark amid positive global cues. The Realty and the Consumer Durables space led the rally.

BSE SENSEX closed at 16165.09 up by 350.37 points or by 2.22 % and then NSE Nifty ended at 4849.55 up by 106.75 points or by 2.25 %.The BSE MIDCAP closed at 5451.08 up by 119.67 points or by 2.24 %, while the BSE SMLCAP ended at 5996.48 up by 153.95 points or by 2.63 %.The BSE Sensex touched intraday high of 16180.97 and intraday low of 15898.32 The NSE Nifty touched intraday high of 4855.9 and intraday low of 4768.25.

The positive closing of the US stock markets on Monday lifted domestic sentiment during morning trade. On Monday, the Dow Jones Industrial gained 32.77 points and closed at 12392.69. The S&P 500 gained 2.89 points and closed at 1280.7 and the Nasdaq closed at 2676.56, gaining 2.34 points over the previous day's closing. Soon after witnessing a gap up opening, the domestic benchmarks extended their gains amid positive cues from the Asian markets. Asian markets were trading higher on Tuesday amid hopes that US economic recovery is gaining momentum. Consumer credit in the US posted its largest increase in a decade in November 2011. Moreover, hopes that Chinese policymakers may ease monetary policy in the near-term amid slowing export and import growth, also improved sentiment. Further, Germany and France vowed to take measures to resolve the deepening debt contagion and stressed that they want Greece to remain in the Euro. On the domestic front, investors were hopeful of a better corporate report card, as the earnings season kick-starts this week. The benchmarks continued to surge higher during afternoon trade amid improved investor sentiment. The benchmarks continued to trade on a firm note and surged to the day's high during the final hour of the session as a positive opening in the European markets boosted sentiment. European markets rose on Tuesday after a report said that French industrial output expanded 1.1 per cent in November 2011, month on month, allaying fears that the nation's economy is slipping into a recession. Finally, the benchmarks closed on a positive note, ending at the highest level in a month, with the BSE Sensex and the NSE Nifty gaining over 2.2% each. Among the BSE Sectoral indices, BSE Realty and Consumer Durables ended up 4.2% and 3.56% respectively.

Among the 30 Sensex stocks, Mahindra and Mahindra, Hindalco Industries, Larsen & Toubro, Jindal Steel & Power and RIL closed up 5.63%, 4.28%, 4.24%, 4.12% and 3.99% respectively. Among the Sensex stocks, there were 28 advances and 2 declines. On BSE out of total shares traded 2974, shares advanced were 2173 while 705 shares declined and 96 were unchanged.

On the economic front, rating agency Moody's has upgraded India's short-term foreign currency rating from speculative to investment grade. The latest upgrade may help domestic companies to raise funds from foreign markets at competitive rates.

On the global front, exports of Asia's largest economy, China, expanded at a slower pace in December 2011, compared to the previous month as overseas demand weakened amid the lingering debt crises in Europe and financial market strains, said a government report on Tuesday. China's exports rose by 13.4 per cent in December 2011, compared to the same month in 2010, down from the 13.8 per cent annual increase seen in November 2011.

On the Asian front, Shanghai Composite closed up 2.69%, Hang Seng ended up 0.73% and Nikkei 225 closed up 0.38% on Tuesday.

On the European front, CAC 40 was up 2.23%, DAX was trading higher by 2.34% and FTSE 100 was up 1.01% on Tuesday.

On the Corporate front, according to reports, Reliance Infrastructure is in talks to acquire three road projects in Tamil Nadu .The total value of the three projects is estimated to be around Rs 10 billion. The stock of Reliance Infrastructure ended up 5.22% at Rs 398.45 on the BSE on Tuesday.

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