The key benchmark index - BSE Sensex started the session 10 points higher at 18215 (day’s low) taking lead from the strong US markets and healthy Asian indices. The Sensex went on rising and hits the day’s high of 18356 in initial trades as Asian markets continued to trade higher. As the session progressed, the index traded in a very narrow range. The Sensex continued its rangebound trade in the afternoon session as the European markets did not show much movement at its opening. However, in the late trades, the Sensex pared most of its gains as selling intensified in heavyweights.
At the finishing line, the Sensex closed at 18236, 32 points higher. The Nifty closed at 5486, higher by 14 points.
After rallying more than 200 points in the previous session and bouncing back from the lows of Tuesday (August 31, 2010), its seemed that the domestic markets turned into consolidation mode in today’s trade. However, selling pressure in the late trades wiped out most of the intraday gains in contrast to a strong start as the Indian indices ended the session with marginal gains. The indices climbed to its highest level in a week after the Finance Minister Pranab Mukherjee said that taxes paid by the companies increased, fueling speculation that the earnings will be good. One can also attribute this newfound confidence in equities to accelerating growth in the US and Chinese manufacturing data along with strong gross domestic product (GDP) data in European economy pushing the European indices higher. Small Cap and Mid Cap outperformed the Sensex.
Sugar sector flies on the reports of possible decontrol of sugar prices. In Group 'A' stocks, SUZLON ENERGY was the star of the day
MARKET SENTIMENT: The market breadth was strong as advancing stocks outpaced the declining ones. Of the 3,055 scrips traded on the BSE, 1,848 scrips surged while 1,085 scrips declined. Only 122 shares remained unchanged.
