AS SUGGESTED IN THE MORNING, ICICI BANK ROSE NEARLY 6% AND MADE A 52-WEEK HIGH.
The key benchmark indices started the week and the month on a buoyant note logging strong gains as latest data showing surge in manufacturing activity in October 2010, good Q2 September 2010 results, and firm global stocks boosted investor sentiments. The BSE 30-share Sensex jumped 323.29 points or 1.51%.
Trading remained suspended on BSE for about two-and-a-half hours between 12:00 IST and 14:30 IST due to a technical snag. Trading continued on NSE as usual during that period. Due to closure of trading for more than two hours, turnover on BSE declined sharply to Rs 1957 crore from Rs 5,018.07 on Friday, 29 October 2010.
Banking stocks were on a roll with sector heavyweight ICICI Index striking 52-week high near the Rs 1,250 mark on decent Q2 results. Index heavyweight Reliance Industries (RIL) dipped in the red after a firm start triggered by good Q2 results. Hero Honda Motors and Maruti Suzuki India declined as their earnings missed market expectations. Mahindra & Mahindra spurted close to 5% on strong October 2010 auto sales data. Software stocks rose on fresh buying, reversing Friday's fall. Metal stocks staged a comeback on bargain hunting after a two-day slide, with strong Chinese manufacturing data triggering the rebound.
The market opened on a firm note, tracking gains in Asian stocks. The market extended gains in mid-morning trade. The market held firm in early afternoon trade. The 50-unit S&P CNX Nifty scaled fresh intraday high in afternoon trade. The market held firm in mid-afternoon trade. The market pared gains on profit booking in late trade.
NSE's volatility index, India VIX, rose 0.77% at 20.92. The index had risen 1.17% to settle at 20.76 on Friday, 29 October 2010. The index had lost 2.38% to 20.52 on Thursday, 28 October 2010, a day after it had risen 2.29% to 21.02 on Wednesday, 27 October 2010. The index had lost 3.79% to 20.55 on Tuesday, 26 October 2010. India VIX is calculated based on the S&P CNX Nifty options prices. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days.
The focus of the market is currently on the second quarter September 2010 results. The results announced so far have been encouraging. The combined net profit of a total of 1532 firms surged 40.7% to Rs 77630 crore on 18.5% growth in sales to Rs 547594 crore in Q2 September 2010 over Q2 September 2009.
Foreign funds have made heavy purchases of Indian stocks this year. Net equity inflows in 2010 now stands at a record $25.01 billion, above last year's $17.45 billion.
