The BSE 30-share Sensex was up 107.41 points or 0.55% to 19,799.19. The Sensex rose 145.04 points at the day's high of 19,836.82 in late trade. The index lost 70.37 points at the day's low of 19,621.41 in morning trade.
The S&P CNX Nifty was up 36.45 points or 0.62% to 5,944.10.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1973 shares rose while 940 shares fell. A total of 80 shares remained unchanged. Among the 30-member Sensex pack, 19 rose while the rest fell.
The Indian markets rose for the third consecutive day and shut on a strong note as investor sentiment remained upbeat after the fall in monthly inflation.
The market breadth was strong as mid-cap and small-cap stocks continued to attract buyers after recent sharp losses.
The wholesale price index (WPI) rose an annual 7.48% in November, in line with forecast, government data showed on Tuesday. The figure was lower than the annual rise of 8.58% in October. The annual reading for September was upwardly revised to 8.93% from 8.62%.
The Reserve Bank of India (RBI) undertakes a mid-quarter policy review on Thursday, 16 December 2010. At a quarterly policy review early last month, the Central Bank had signalled a pause in its policy tightening drive that began in October 2009. Based purely on current growth and inflation trends, the Reserve Bank of India (RBI) believes that the likelihood of further rate actions in the immediate future is relatively low, RBI Governor D Subbarao had said in a monetary policy statement on 2 November 2010. "However, in an uncertain world, we need to be prepared to respond appropriately to shocks that may emanate from either the global or domestic environment," he had added.
The headline inflation is expected to ease to 6% by March 2011, Finance Minister Pranab Mukherjee said on Tuesday. The large capital flows into India are not a matter of concern, according to a mid-year review of the Indian economy tabled by Finance Minister Pranab Mukherjee in parliament last week. Even after this month's sell-off, the inflow of foreign funds in Indian stocks remains at record level this year.
According to mid-year review, the economy may grow by 9% during the year ending March 2011 (FY 2011). Average headline inflation is seen at 8.98% for the year, it said. The report indicated that the country's fiscal deficit will not be more than 5.5% of its gross domestic product in FY 2011.
The Indian economy grew a robust 8.9% year-on-year in Q2 September 2010, maintaining the same pace of expansion as the previous quarter, boosted by farm output and manufacturing, government data released Tuesday, 30 November 2010 showed. The manufacturing sector grew an annual 9.8% and farm output grew an annual 4.4% in Q2 September 2010. The government revised upwards the Q1 June 2010 GDP growth to 8.9% from 8.8% earlier.
The next major trigger for the equity market is the advance tax payment of corporates for the third installment, which falls due on 15 December 2010, i.e., from today. The advance tax figures will provide a cue on Q3 December 2010 corporate earnings.
BOND MARKET: India’s 12-year bonds gained before the central bank purchases debt from the market this week. The yield on the 8.13% bond due in September 2022 fell six basis points to 8.07%.
MARKET SENTIMENT:
The market breadth was in favour of advances; the gainers outpaced the losers over two times. Of the 2,991 stocks traded on the BSE, 1,931 rose while 939 fell. Hundred and twenty-one stocks traded unchanged.
FOR TODAY: The Nifty is now slowly inching towards 6000 mark. However, yesterday NIfty tried to cross 5960 mark but failed. SGX Nifty is trading at 5950 (down 8.5) suggests that Nifty may open nearly 5950 and will tray to move towards 6000. Selling pressure at high level between 5970-6000 will be seen due to truncated week.
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