Stock market bounces back; banks, metals shine
Sensex was up 599.34 points, or 0.83 per cent at 73,088.33, while the Nifty was up 151.20 points or 0.69 per cent at 22,147.
Indian stocks coasted to a two-month high in early Wednesday deals as traders ramped up metal shares and banking stocks. Expectations of strong quarterly earnings are high after IndusInd Bank lit up the street posting a 29 per cent rise in third quarter profit.
The Nifty gained 45 points to 8,333 points, trading at its highest level since November 11 and rising for the second day. Here are the major events of the trading day:
* Metal stocks rallied sharply on Dalal Street, led by steel companies from the Jindal group. Jindal Steel soared 7.3 per cent and JSW Steel jumped 7 per cent. The top three gainers in the futures market were steel stocks. Government owned SAIL surged 5 per cent. Market men are expecting a dip in Chinese steel output.
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* As a consequence, the Metals sub index soared 3.6 per cent and is now trading at its highest level since December 2014. Savvy investors have bought into beaten down metal shares over the past two months as excessive over capacity hurt prospects of such companies. However, the sector is slowly but certainly weeding out such capacity in a bid to turn profitable globally.
* The Sensex added 131 points to 27,030 points on the Bombay Stock Exchange. Tata Steel was the top gainer, up 3.7 per cent, and also the top traded stock on the index. Bajaj Auto dropped 1 per cent and was the top loser.
* IndusInd Bank was the top gainer on the Nifty after its 3rd quarter profit and net interest income soared. The stock added 5.1 per cent and traded above its November 11 high. Tata Steel, Hindalco, Coal India and Yes Bank were the other gainers on the index, up 2.7-4.1 per cent They were among 35 stocks that advanced on the Nifty.
* TCS, Bajaj Auto, Tech Mahindra, BPCL and Infosys dropped 0.5-1 per cent and were among 16 stocks that fell on the Nifty.
* Broader market indices added 0.5-0.7 per cent.
* The entire sectoral space showed a green uptick, except for the IT index which dropped 0.4 per cent. Strong gains were seen in Media stocks and on the four banking indices.
* IndusInd Bank, Tata Steel and Bharat Earth Movers were the top traded stocks by value on the NSE and all three exhibited strong gains.
* Suzlon, Jindal Steel and JSW Steel were the top traded stocks by volume.
* The bulls retained control of Dalal Street where 1,063 stocks rose versus just 467 that fell.
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