Fuel price hike hopes, ECB send Sensex on 337-pt joyride

Indian equity benchmarks saw the best rally in last two months on Friday, helped by the European Central Bank's aggressive bond buying plan to ease Eurozone debt crisis going forward. The BSE Sensex surged 337.46 points or 1.95% to close at 17,683.73 on broadbased buying.

Another reason behind today's rally was the hopes of fuel price hike . Market experts still believe the government will consider hike in petrol or diesel prices soon, though Minister of State and Oil said the prices of diesel would not go up in near future.

Now all eyes are on fuel price revision after the monsoon session of parliament ended without any conclusion today as the opposition party Bharatiya Janata Party had been stuck to its protest for coal allocation scam in all 13 days of monsoon session.

The 50-share NSE Nifty rose 1.95% or 103.70 points to 5,342.10. UR Bhat of Dalton Capital feels that the Nifty is inching towards 5400 if global cues support. He also adds that diesel price hike of Rs 4-5 per litre will support the market.

ECB Chairman Mario Draghi's pledge to do whatever it takes to save the euro was backed up yesterday by the ECB's announcement of not setting any limit to the bond buying programme. European markets extended the rally; France's CAC was up 1.14% and Germany's DAX went up 0.8% while Britain's FTSE gained 0.2% after rising 2-3% yesterday.

Manpreet Gill of Standard Chartered said the global rally is likely to sustain if the investor is looking at a long time horizon. He believes the ECB move has mitigated the risk of contagion in peripheral European markets.

Asian markets too closed sharply higher; Shanghai spiked 3.7% and Hang Seng gained 3%. Nikkei rose 2.2% and Kospi was up 2.57%.

Back home, the BSE Capital Goods, Realty, Metal, Bank and Auto indices gained 2-3%. Oil & Gas, IT, Healthcare and Power indices went up 1-1.8%.

Country's largest lender ICICI Bank spiked 4.7% while its rival State Bank of India was up 1.9%.

Private steel producer Tata Steel topped the buying list with gains of nearly 6%; Hindalco and Sterlite Industries were up 3%.

Index heavyweight Reliance Industries, engineering conglomerate Larsen & Toubro, software services exporter Infosys and commercial vehicle major Tata Motors shot up 2.5-4.4%.

Advancers outnumbered decliners by 1769 to 1049 on the Bombay Stock Exchange.

In the second line shares, Mercator and Deccan Chronicle surged 10% each. HDIL, Indiabulls Real, GVK Power, GMR Infra and Hexaware gained 1-4%.

Liquidity too played a key role in today's trade. The Indian rupee appreciated 30 paise to close at 55.36 against the US dollar. Even the Euro advanced to 1.2713 against the US dollar.

The Indian markets will remain opened tomorrow for trading between 11:15 am to 12:45 pm IST.

The BSE Sensex rallied 325 points to 17,670.91 on support from global markets. Currencies too strengthened against the American dollar; the Indian rupee appreciated 26 paise to 55.40 to the US dollar and Euro moved up 0.3% to 1.267 to the US dollar.

European markets extended rally for the second consecutive session today after the European Central Bank has decided to undertake an aggressive bond buying programme to ease Eurozone debt crisis yesterday. France's CAC rose over 1% and Germany's DAX was up 0.9% while Britain's FTSE was flat.

Back home, the NSE Nifty climbed 97.30 points or 1.86% to 5,335.70, led by broadbased buying. The Realty Index surged 2.8% followed by gains of 2.6% in Metals and Capital Goods indices. Auto and Bankex jumped over 2%.

Shares of ICICI Bank, Tata Motors, Tata Steel, DLF and Jaiprakash Associates shot up 4-5%.

Index heavyweight Reliance Industries and engineering conglomerate Larsen & Toubro were up 3% each. Metals stocks like Sterlite and Hindalco too moved up 3%.

FMCG major Hindustan Unilever, software services exporter Infosys and country's largest lender State Bank of India gained over 2%.

Indian shares surged nearly 2% as leading blue chips like ICICI Bank and Tata Motors advanced more than 4%. Index heavyweight Reliance Industries extended rally to 3.5% while private steel producer Tata Steel jumped nearly 5%.

About 1-2% upmove in capital goods, metal, banks, oil & gas, auto and technology sectors helped the 30-share BSE Sensex gain 320 points at 17,665.63.

Meanwhile, the 50-share NSE Nifty rose 95 points to 5,333 following further upward journey in European markets after the European Central Bank chairman unveiled new bond buying programme called Outright Monetary Transactions yesterday. France's CAC was up 1.3% and Germany's DAX rose 0.7%.

Country's second largest software services exporter Infosys, housing finance company HDFC, drug producer Sun Pharma and top car maker Maruti Suzuki were up over 1.5%.

Engineering conglomerate Larsen & Toubro and two-wheeler maker Bajaj Auto moved up over 2.5%. Public sector lender State Bank of India was up 2.25% while its rival Axis Bank shot up 2.7%.

FMCG major Hindustan Unilever rose 2%. Among metals stocks, Sterlite Industries, Jindal Steel, Hindalco and Sesa Goa gained more than 2%.

Advancing shares outnumbered declining by 1695 to 949 on the Bombay Stock Exchange.

Indian equity benchmarks strengthened again with gains of more than 300 points on the Sensex. European markets climbed further in early trade after rising 2-3% yesterday due to the new bond buying programme unveiled by the European Central Bank chairman Mario Draghi.

The 30-share BSE Sensex rallied 318 points to 17,664.52 led by broadbased buying. Meanwhile, the 50-share NSE Nifty rose 91.60 points to 5,330.

Oil retailers BPCL, IOC and HPCL cut losses after sources from oil ministry say the government is keen to hike petrol and diesel prices together. Sources say the petrol price hike may happen with diesel and LPG price hike. "Staggering price hikes will not be a good political call. Diesel price hike of less than Rs 4 per litre doesn't make sense," sources added.

Earlier in the afternoon, these stocks were down quite sharply after the oil minister Jaipal Reddy said there was no immediate proposal to hike fuel prices, including petrol .

India's largest lenders State Bank of India and ICICI Bank were up 2.26% and 4%, respectively.

The BSE Metal, Bank, Oil & Gas, Capital Goods, Realty and Auto indices jumped 2% each.

Among auto stocks, commercial vehicle maker Tata Motors hogged the limelight with 4% gains while M&M, Bajaj Auto and Maruti Suzuki gained 1-2%.

Housing finance company HDFC, software services exporter Infosys and FMCG major Hindustan Unilever moved up nearly 2%.

Tata Steel was the top gainer among largecaps, rising more than 4.5% while Sterlite Industries, Hindalco and Jindal Steel were up 2-2.5%.

Reliance Industries, India's most valued stock and engineering and construction major L&T climbed 2.6% and 2.35%, respectively.

In the second line shares, Aurobindo Pharma rallied nearly 4% as the company received final US FDA nod for hypertension drug Benazepril.

The 30-share BSE Sensex remained strong in trade on global rally; though it erased some gains after hopes of fuel price hike waned. State-run oil & gas producer ONGC trimmed gains to 0.5% from 2% after the Oil Minister Jaipal Reddy said there was no immediate proposal to hike fuel prices , including petrol.

While talking to media reporters outside parliament, he said the government has not taken decision yet on fuel prices. "We need to reduce burden on fuel retailers, but the government cannot fully compensate oil marketing companies," he added. Oil retailer BPCL tanked 3% after the news while IOC declined over 1% as the chairman R S Butola said they were losing Rs 16 crore per day on petrol sales. 

The BSE benchmark surged 278.60 points to 17,624.87 (gained 329.5 points intraday) and the NSE benchmark gained 80.60 points at 5,319, aided by the upward journey in global markets as the ECB chairman Mario Draghi's new bond buying programme lifted sentiment.

Private steel producer Tata Steel extended gains to 4.23% while Jindal Steel, Hindalco Industries and Sterlite Industries were up 2% each.

Country's largest private sector lender ICICI Bank and top commercial vehicle maker Tata Motors retained their position among top three gainers, rising 3.5% and 3.8%, respectively.

Index heavyweight Reliance Industries, public sector lender State Bank of India, engineering conglomerate Larsen & Toubro and two-wheeler maker Bajaj Auto were up 2% each.

Housing finance company HDFC, software majors Infosys and TCS moved up 1-1.9%.

Advancers outnumbered decliners by 1663 to 791 on the Bombay Stock Exchange.

In the second line shares, Jaypee Infra, Whirlpool, United Bank, Glodyne Tech and FDC rallied 5-6% while Prestige Estate, S Mobility, KSK Energy Ventures, Coromandel International and Tulip Telecom lost 1.5-3%.

Indian shares continued to trade higher with 1.5% gains led by consistent upmove across sectors. New bond buying programme by European Central Bank (ECB) and US economic data seems to be cheering up Indian market. Investors are also building up hopes on possible fuel price hike.

The 30-share BSE Sensex gained 274.37 points at 17,620.64 and the 50-share NSE Nifty rose 80.80 points to 5,319.20, supported majorly by banks, metals, oil & gas and technology stocks.

Jyotivardhan Jaipuria of Bank of America Merrill Lynch said, "While India could benefit in the near-term from a 'risk-on' rally globally, we are skeptical on the sustainability of any sharp rally especially if global commodity prices rise."

European Central Bank's chairman Mario Draghi unveiled new bond buying program yesterday called Outright Monetary Transactions, which includes unlimited purchases of bonds with period of 1-3 years, subject to conditionality. That resulted in a global markets rally; Shanghai surged over 4% while Hang Seng, Nikkei and Kospi gained 2%.

Back home, the country's largest private sector lender ICICI Bank and commercial vehicle major Tata Motors topped the buying list with 3.5% gains.

Among sectors, the BSE Metal, Oil & Gas and Bankex were up 2% each. Capital Goods, Realty, Auto, IT, Power and Healthcare indices gained 1-1.8%.

Index heavyweight Reliance Industries, engineering conglomerate Larsen & Toubro, public sector lender State Bank of India and state-run oil & gas producer ONGC rallied 2% each.

Among metals stocks, Tata Steel jumped 3% while Hindalco Industries and Sterlite Industries moved up 2%.

The broader markets too participated in the rally; the BSE Midcap and Smallcap indices went up over 1%. About five shares advanced for every share declining on the National Stock Exchange.

The BSE Sensex gained more than 300 points and NSE Nifty crossed the 5300 level quite nicely in early trade, aided by the rally in global markets after the European Central Bank announced new bond buying program called Outright Monetary Transactions .

The BSE benchmark rose 266.63 points to 17,612.90 and the NSE benchmark rallied 78 points to 5,316.

ECB's new bond buying program includes unlimited purchases of bonds with period of 1-3 years, subject to conditionality. The negative part is that the ECB cut growth forecast for 2012 and 2013, but the market ignored the same.

Asian markets moved up between 1% and 2% while US markets closed higher with 2% gains yesterday. The better-than-expected ADP employment, weekly jobless claims and ISM Services data in the US too supported the rally.

Back home, Sterlite Industries, Sesa Goa, Hindalco, Tata Motors, IDFC, DLF, JP Associates, L&T, BHEL, Bharti and Reliance Industries shot up quite sharply.

The Bank Nifty jumped 162 points as the country's largest lenders ICICI Bank and SBI gained 2.7% and 1.8%, respectively.

Coal India, HDFC Bank, ITC and HUL gained 0.5-1%.

The CNX Midcap Index rose 85 points or 1.2% to 7,212 as about four shares advanced for every share declined on the National Stock Exchange.

In the second line shares, Delta Corp, Kingfisher, PFC, HDIL, Indiabulls Real, IVRCL and Sintex were up 2-3%.

Mercator shot up 10%.

Mahindra Ugine surged 10% as The Times of India reported that Mitsui and Sanyo bought 49% in company's steel business for Rs 218 crore.

Sugar stocks too participated in the rally. Balrampur Chini, Shree Renuka and Bajaj Hindusthan gained 1-1.5%.