Sensex ends 1.47% higher on global cues Analysis for Dec 26, 2011

Posted By: Religare
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Today, the domestic benchmarks closed on a robust note amid mixed cues from the Asian markets. The Teck and the IT space led the rally.

BSE SENSEX closed at 15970.75 up by 232.05 points or by 1.47% and then NSE Nifty ended at 4779 up by 65 points or by 1.38%.The BSE MIDCAP closed at 5228.23 up by 43.04 points or by 0.83%, while the BSE SMLCAP ended at 5669.98 up by 55.08 points or by 0.98%.The BSE Sensex touched intraday high of 15998.44 and intraday low of 15761.18 The NSE Nifty touched intraday high of 4787.25 and intraday low of 4718.15.

The positive closing of the US markets on Friday boosted domestic sentiment during morning trade. On Friday, the Dow Jones Industrial gained 124.05 points and closed at 12293.7. The S &P 500 gained 11.30 points and closed at 1265.3 and the Nasdaq ended at 2618.64, gaining 19.19 points over the previous day"s closing. Soon after witnessing a gap up opening, the domestic benchmarks extended their gains and surged higher amid mixed cues from Asian markets. Asian markets were mixed on Monday as the improving outlook for the world"s largest economy, the US, boosted sentiment across some markets. Sentiment improved after Friday"s US economic data showed that US new home sales rose to a 7-month high in November 2011, while consumer spending rose for a second straight month in November 2011 and orders for durable goods in the world"s largest economy, the US, expanded at the fastest pace in four months in November 2011. Investors are betting that a pickup in the pace of US economic recovery may boost the earnings outlook for Asian exporters. On the domestic front, the climb of the rupee against the dollar on Monday also lifted sentiment. The domestic benchmarks continued to trade on a firm note before trading range bound in the positive terrain during afternoon trade. The domestic benchmarks rose to the day"s high during the end of the session amid a pickup in investor sentiment. Finally, the benchmarks ended on a strong note, with the BSE Sensex and NSE Nifty gaining over 1.35% each. Among the BSE Sectoral indices, BSE Teck and BSE IT closed higher by 2.61% and 2.39% respectively.

Among the 30 Sensex stocks, Hero MotoCorp , Bharti Airtel, Tata Steel, Infosys Limited and Jaiprakash Associates closed up 4.75%, 4.31%, 3.01%, 2.91% and 2.89% respectively. Among the 30 Sensex stocks, there were 28 advances and 2declines. On BSE out of total shares traded 2899, shares advanced were 1746 while 1011 shares declined and 142 were unchanged.

On the economic front, according to media reports, the Indian government"s fiscal deficit for the year 2011-12 may exceed 5.2 per cent of the country"s gross domestic product this year, much higher than the 4.6 per cent target.

On the global front, Asia"s largest economy, China may further lower the reserve requirements for its banks in 2012 to boost liquidity and spur growth, a former deputy governor of the People"s Bank of China said on Sunday.

On the Asian front, Shanghai Composite ended down by 0.67% and Nikkei 225 closed up 1% on Monday.

On the Corporate front, Havells India announced on Monday that it has entered into a Joint Venture agreement with Shanghai Yaming Lightning Co. Limited for providing energy and cost efficient products for Global Sylvania and local China markets. The stock of Havells India closed up 3.46% at Rs 397.95 on the

Read more about: bse, nse
Story first published: Monday, December 26, 2011, 18:20 [IST]
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