Markets end higher amid volatility; midcap, small cap shine

02 January 2009

The benchmark indices closed the day in a positive terrain with the help of banking, realty, capital goods, select power and oil stocks. Midcap and small cap stocks outperformed largecaps, which kept the market breadth on the stronger side. Government is likely to announce second fiscal stimulus package today, which also kept the markets warm. But it was an another trading session, where volumes remained low though it was better than Thursday.

The markets had opened in green and immediately turned into choppy trade. In the afternoon session, both indices went up higher during the day; the Nifty has hit a high of 3079.85 while the Sensex crossed 10000 mark again and touched a high of Rs 10,070.28. But the markets tried very hard to remain on the higher side amidst volatility for major part of the day. Positive Asian and European markets also helped the benchmark indices a bit.

The 30-share BSE Sensex ended with a gain of 54.76 points or 0.55% at 9,958.22 and the 50-share NSE Nifty went up 13.30 points or 0.44% at 3046.75. BSE Midcap Index gained 72.08 points or 2.17% at 3,391.18 and Small Cap Index rose 60.04 points or 1.58%, to settle at 3,870.45.

Buying was seen in banking, realty, capital goods and select power stocks, as the government might announce the second fiscal package today, after the market closes, by around 6 pm, reports CNBC-TV18, quoting NewsWire18. The package may primarily focus on labour intensive export sectors.

Meawhile sources also said that senior officials led by Cabinet Secretary will meet up this afternoon to finalise the package. Also PM has held meetings on the package and is in talks with finance Ministry Secretaries too.

Sources said that a major package is expected and there would be amendments to some proposals from the first package.