Post Session-Sensex advances for second day ahead of economic data 12/08/2014

Post Session-Sensex advances for second day ahead of economic data
12/08/2014 16:25
The key domestic benchmarks closed on a strong note as the Sensex advanced for a second day on the trot on Tuesday, rallying by more than 361 points led by gains in Auto and PSU stocks. The scrip of Tata Motors surged nearly 6 per cent after the company posted a robust 213 per cent year-on-year (y-o-y) jump in consolidated net profit at Rs 5,398 crore for the quarter ended June 2014 (Q1), on back of strong demand for new products, growth in volumes, richer product mix and richer geographic mix at Jaguar Land Rover (JLR).

Investors were confident ahead of June IIP numbers which may show that industrial output rose for the third month on the trot in June, signaling a recovery in Asia’s third biggest economy. . India’s industrial output may have risen 5.6 per cent, year on year in June 2014, up from an annual 4.7 per cent rise in the previous month.

Positive cues from most Asian markets also boosted sentiment as geopolitical concerns eased amid fading tensions over Ukraine while the US airstrikes in Iraq also raised hopes of a containment of militancy in the country. Russia agreed to support aid for an international humanitarian mission in eastern Ukraine. China’s Shanghai Composite fell ahead of retail sales and industrial output data due tomorrow which may offer cues over the pace of economic recovery in the world’s biggest metals consumer. China’s factory output growth may have stood unchanged at 9.2 per cent in July 2014 while retail sales may have risen 12.5 per cent, year on year, up from an annual 12.4 per cent in June 2014, analysts’ estimates showed. Hang Seng rose while Japan’s Nikkei 225 extended a rally as a weaker yen bolstered the outlook for exporter stocks.

The BSE SENSEX closed at 25,880.77, up by 361.53 points or by 1.42 per cent and the NSE Nifty ended at 7,727.05, up by 101.1 points or by 1.33 per cent.

The BSE Sensex touched intraday high of 25904.98 and intraday low of 25645.79 The NSE Nifty touched intraday high of 7735.75 and intraday low of 7654.8

Meanwhile, the BSE MIDCAP closed at 9,055.95, up by 43.9 points or by 0.49 per cent, while the BSE SMLCAP ended at 9,947.06, up by 44.39 points or by 0.45 per cent.

On the Sectoral front, Auto and PSU climbed 1.79 per cent and 1.72 per cent, respectively.

The Market breadth, indicating the overall health of the market, was strong. On BSE out of total shares traded 3164, shares advanced were 1624 while 1420 shares declined and 120 were unchanged.

The top gainers of the BSE Sensex pack were GAIL (India) Ltd. (Rs. 413.65,+6.02%), Tata Motors Ltd. (Rs. 473.90,+5.92%), Housing Development Finance Corporation Ltd. (Rs. 1115.75,+5.39%), Oil And Natural Gas Corporation Ltd. (Rs. 405.50,+3.21%), NTPC Ltd. (Rs. 139.45,+2.69%), among others.