JOIN USMarket rallies ahead of key economic events
Key benchmark indices, on Tuesday, edged higher for the third straight trading session to attain their highest closing level in two-and-a-half weeks as firm global stocks boosted sentiment.
In the backdrop of world stock surging on optimism of a Greek bailout, domestic markets consistently witnessed firm trades during the day on a strong note led by index heavyweight Reliance Industries advancing close to 3 per cent. The bellwether index of BSE gained as traders remained positive on the advance taxes, which hints corporate earnings for Q4, that domestic firms are due to file by March 15.
That apart, Railways Minister Dinesh Trivedi would be presenting the Railway Budget on Wednesday for the financial year 2012-2013. Experts hope that it will reduce export levy on iron ore fines which would, in turn, push up exports.
Reverting to the day’s trade, interest rate sensitive bank stocks rose for the second day in a row after RBI on last Friday announced a CRR cut of 75 basis points for banks to ease liquidity in the banking system. Car major Maruti Suzuki struck a 52-week high, while pharma major Sun Pharmaceutical Industries scaled record high. Software pivotals were mixed ahead of the US Federal Reserve policy meeting later in the day.
Commenting on the market, Kotak Securities’ Vice-President Sanjeev Zarbade said, “The rally has been driven by liquidity and the liquidity generated through LTRO-II may find its way into emerging markets like India. The strong FII flow since Friday lend credence to this belief. However, concerns remain with Crude oil at $125 per barrel, adding to the inflationary pressure.”
The popular Sensex at BSE surged 225.95 points or 1.28 per cent to settle at 17,813.62, its highest closing level since February 24, 2012. The index jumped 255.25 points at the day’s high and rose 92.56 points at the day’s low.
The 50-unit S&P CNX Nifty jumped 69.95 points or 1.31 per cent to settle at 5,429.50, its highest closing level since February 23, 2012
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The index hit high of 5,438.65 and a low of 5,390.80 in intraday trade.
From broader markets, the BSE Mid-Cap index rose 1.21 per cent and the BSE Small-Cap index gained 1.03 per cent.
From a recent low of 17,145.52 on March 7, 2012, the BSE Sensex has gained 668.10 points or 3.89 per cent in three trading sessions.
The market breadth, indicating the overall health of the market, was positive with as many as 1,712 shares on BSE surged and 1,215 shares declined while a total of 129 shares remained static. The total turnover on BSE amounted to Rs 2910 crore,