Market Commentary

Indian market rose for the fourth straight session tracking firm cues from the markets all over the world. Stocks witnessed rally on a volatile session led by growing optimism that the global economic slump may be close to its end. In addition, buying by FIIs and steps taken by the G20 leaders to revive the global economy, also contributed to the northward journey. The G20 members announced a $5 trillion stimulus package, which would be delivered by 2010 end to deal with the economic recession. However, benchmark indices trimmed some of their gains during trading on account of profit booking after a decent rise. The market opened on pleasant note directed by firm cues from the Asian markets. Also, the US stock markets on Friday ended higher on the back of better than expected results from Research in Motion and positive comments by Fed Chairman Ben Bernanke about lending to banks. Domestic market exhibited volatility after firm opening and pared some of its gains on slight bouts of selling. However, benchmark indices continued to move in positive territory as buying was witnessed in front liners. Strong European markets also lifted the sentiments. Finally, market concluded its bullish movement only by the end of session in line with most of the global stocks. BSE Sensex ended above 10,500 level and NSE Nifty above 3,200 mark. From the sectoral front, strong buying was seen mainly in Consumer Durables, Capital Goods, Metal, Auto, Reality, Bank and Teck stocks. Mid Cap and Small Cap stocks also followed the same trend. However, FMCG and IT stocks witnessed most of the selling from these baskets.Among the Sensex pack 22 stocks ended in green territory and 8 in red. The market breadth indicating the overall health of the market remained extremely positive as 1859 stocks closed in green while 633 stocks closed in red and 75 stocks remained unchanged in BSE.