Markets celebrate Fed rate cut: Sensex closes above 16k

It was a phenomenal session for equity markets across the globe giving some blow out moves. Markets saw an emphatic breakout celebrating the rate cut of 50 bps in the discount rate by the Fed chief Ben Bernanke. This rate cut comes after four years on account of recession concerns in the US. During the last four years there have been 17 consecutive rate hikes and yesterday we saw a rate cut of 50 bps. Analysts are seeing this as positive and a bold move by the Fed in order to take charge of the slowdown in US.

It was a historic session for Sensex, which was up 4% or 600 points breaching 16,000 and staying well above outperforming most of the Asian peers. It was the biggest single day points gain for Sensex. The euphoria was wide spread in scrips across sectors. Sugar was the story of the day. After a long time sugar rallied with some of sugar stocks locked in upper circuit on sops being given to sugar companies.

Rate sensitive were also among the star performers whether it was banking, property or auto.

Banking & financial stocks like HDFC and HDFC Bank saw big moves and were up 8% followed by ICICI Bank and SBI. Giving them company from the realty space were DLF, Unitech, HDIL.

Stocks like SBI, SAIL, Reliance, RPL, HDFC, BHEL and Tata Steel hit their life time highs. Reliance market cap hit Rs 3 lakh crore.

Sensex was up 653.63 points or 4.17% at 16322.75, and the Nifty up 186.15 points or 4.09% at 4732.35.

About 1643 shares have advanced, 1301 shares declined, and 86 shares are unchanged.

The BSE Midcap Index ended at 7,116.61 up 132 points or 1.9%.

The BSE Smallcap Index ended at 8,871.00 up 90 points or 1%.

The BSE Capital Goods Index was closed at 14,112.99 up 2%. Triveni Engg, Praj Industries, Lakshmi Machine, Reliance Infra, Carborundum, Bharat Bijlee, Thermax closed higher.

The BSE Auto Index closed closed at 5,094.31 up 3.5%. Maruti Udyog, Bajaj Auto, Mah and Mah, Hero Honda, Tata Motors ended in the green.

The BSE Metal Index closed at 12,546.34 up 4%. SAIL, Sterlite Ind, Tata Steel, Hindalco, JSW Steel, Hind Zinc
advanced.

The BSE FMCG Index gained 2% at 2,140.91. ITC, HUL, Britannia, Marico, Colgate, Tata Tea ended higher.

BSE Oil and Gas Index closed at 8,924.11 up 5%. Reliance Petro, Reliance Natura, GAIL, Reliance closed in green.

The BSE IT Index closed at 4,491.21 up 2.4%. Infosys, Tech Mahindra, Mphasis, I-Flex Solution, HCL Tech, Satyam, Patni Computer closed higher.

The BSE Bankex was up 5% at 8,691.45. HDFC Bank, Bank of Baroda, ICICI Bank, PNB, SBI closed higher.

The NSE cash turnover was at Rs 16470.54 crore and the NSE F&O turnover was at Rs 68643.65 crore. The BSE cash turnover was Rs 7455.94 crore. Total market wide turnover was at Rs 92570.13 crore.