NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News  » Business » Market ends at 3-year high; Bank, metal stocks lead

Market ends at 3-year high; Bank, metal stocks lead

Last updated on: October 18, 2013 16:26 IST

Market ends at 3-year high; Bank, metal stocks lead

Manu Kaushik in Mumbai

It was a great trading day for those invested in banking stocks which helped key indices close above their highest levels since November 2010, along with heavy buying in index heavyweights.  Market sentiment was boosted by upbeat China GDP numbers.

China's economy grew 7.8% in July-September, its fastest pace this year, as firmer foreign and domestic demand lifted factory production and retail sales, the Reuters report suggests. Metal stocks hailed China data with Tata Steel, Sesa Sterlite, Jindal Steel and Power, JSW Steel and Hindalco adding between 1-5% on the Bombay Stock Exchange.

China is the world's largest consumer of copper and aluminum.

The 30-share BSE Sensex surged a whopping 2% or 467 points at 20,882 levels while the broader Nifty index ended at 6,189 levels up over 2% or 143 points from its previous close. Broader markets were upbeat too with small-cap and mid-cap indices adding between 0.7-1% on the BSE.

"The Nifty has found strong support at its 50 DMA and since then it has shown strength managing to surpass the 100 DMA as well as the critical 200 DMA. The Relative Strength Index (RSI) is also trading well above the 60 mark showing strength in the current upmove"

“Nifty has entirely negated the bearish sentiment signaling that further upside could be in store. Momentum and trend strength indicators are hinting at a strong upside. Hence, if the inverted Head and shoulder projections unfold the way it should, then we will see Nifty attempting 6,580. However, a sustained close only above 6,142 would keep this breakout valid,” says Hadrien Mendonca, Technical analyst at India Infoline.

Asian markets finished mixed as of the most recent closing prices. The Hang Seng gained 1.06% and the Shanghai Composite rose 0.24%. The Nikkei 225 lost 0.17%.

European markets are higher today with shares in France leading the region. The CAC 40 is up 0.41% while London's FTSE 100 is up 0.29% and Germany's DAX is up 0.16%.

Back home, buying interest in banks was renewed after Axis and IndusInd posted robust second quarter earnings results. The rupee appreciated in early trades against the dollar on the back of positive global cues. Currency strengthening against the dollar was also among the major reasons why banks rallied.

The partially convertible INR pared initial gains towards the end of the day and is currently trading at Rs. 61.19-a-dollar compared to its previous close of Rs 61.22 per dollar.

All sectoral indices on the BSE ended the day in green led by banks, metal and Capital goods which ended 3-4% higher.

Among the index heavyweights, Reliance Ind was up 2.2%, Infosys was up 1%. Sesa Sterlite shares are up more than 7.5% and is currently the top Sensex gainer

Image: The Bombay Stock Exchange.
Photographs: Hitesh Harisinghani/Rediff