Nifty closes above 5850 on FM's NIB proposal

Finance ministers P Chidambaram's proposition in Parliament to set up National Investment Board (NIB) that monitor and advise ministries on expediting projects entailing investments in excess of Rs 1,000 crore captivated market participants.

The Sensex closed at 19339.90 up 168.99 points or 0.88% and the Nifty ended at 5876.20 up 51.20 points or 0.88%, About 1654 shares advanced, 1251 shares declined, and 560 shares remain unchanged.

All the major sectoral indices ended in green, barring auto, FMCG and realty. Metal stocks led the rally for Sensex today. Click here for sectoral indices

Jindal Steel was the top gainer on the Sensex registering 5.4% gains. Coal India and Bajaj Auto remained top losers. Click here for Top gainers , Top losers 

The market completely ignored GDP numbers and took refuge in Finance Minister's assurance on NIB, which is part of the reforms programme planned by Chidambaram. Click here for Q2 GDP

Indian markets have been rallying since November 20, giving hopes that Nifty may come close to the 6000 mark in December or early January. Brokerages and international rating agencies too have been upgrading India to overweight.

Weekly/Monthly Gainers

Suzlon energy gained about 28% for the week. The stock was reeling under pressure on high debt, picked upward movement as lenders agreed to restructure company's debt.

On monthly basis, United Spirits clearly stole the show. It gained 69% in November 2012. The gains were on the back of the Diageo deal, wherein Diageo will acquire majority stake in the company.

Similarly, Jet airways soared about 57% in November 2012, on back of the news that it will enter into a deal with Etihad and may use the funds to retire debt.

FIIs buy, DIIs sell

FIIs buying in the past have moved in tandem with market rally several times. In November 2012, FIIs bought stocks worth more than Rs 8000 crores as per provisional data. Nifty hit fresh new highs in this month as well. Mutual Funds were however net sellers on profit-booking by domestic investors. Click here for FII stats

Sensex to hit 20800 by December

India in 2013 will be cacophonous; a mix of politics, impending elections, reforms and economic revival expectations, Citigroup said in report.

The investment bank expects Sensex to reach 20,800 by December 2013, based on premise of 9.6-12 percent earnings growth for FY13-FY14 and a valuation multiple of 14.5 times - a slight discount to its 15-16 times longer-term average. Full article

Chart Check by Bonanza

Nifty has formed a bullish candlestick chart pattern on daily as well as weekly charts. Nifty passed its 5850 resistance level on closing basis which indicates further strength in near-to-medium term. After consolidating for more than 2 months, Nifty has finally broken the range with conviction and high volumes.

In the coming sessions, market is likely to see consolidation in upper range of 5950-5800 level. Above 5890, likely upward targets are 5950-6000. Support is seen at 5825-5775 levels and resistance near 5890-5925.

Gold hits 2-week low

Gold importers in India, the world's biggest buyer of the metal, continued to pile up bargain stock in view of the wedding season, as prices extended losses for a fourth day to hit their lowest level in two weeks.

Although Indian GDP data for the quarter of July-September dissapointed, stock markets mainted its upward trend. At 12.38 hrs IST, the BSE-30 benchmark Sensex was trading up 158.90 points or 0.83% at 19329.85 and the Nifty was up 43.85 points or 0.75% at 5868.85.

The mood remained bouyant reflecting positive vibes in the world economy, which is said to be in its best shape in last 18 months.  Asian markets edged up on expectations of a deal to avoid a US fiscal crisis and Japan's industrial output in October rose 1.8 percent - first time in four months. China's prospects too improved in sharp contrast to India's GDP numbers.

Top gainers on the Sensex include BHEL, Sterlite Industries, Jindal Steel, ONGC and Tata Steel. These were gaining between 2.69% and 4.07%. The losers side had names like HUL (-1.2%), Bajaj Auto (-1.05%), Coal India (-0.66%), Maruti Suzuki(-0.47%) and HDFC Bank (-0.2%).

A bout of profit booking kicked in for the market after stellar rally of 3.5% in one week. The Nifty was trading flat after hitting a high of 5865 in early morning trade. December month had provided hefty gains for investors in the past. Analysts are of the view that Nifty may touch 6000 in December series.

Global cues were also supportive for the market. Asian markets were trading firm. European markets are expected to open flat.

Gross domestic product (GDP) has slowed down to 5.3 percent in the July- September versus 5.5 percent in last quarter and 6.7 percent in corresponding quarter last fiscal. It is in-line with CNBC-TV18 poll. Full article

 FMCG, auto and realty stocks were on seller's radar. Selective buying was seen in metal, oil&gas and power stocks. Click here for sectoral indices

Tata Motors, Bharti Airtel, Bajaj Auto saw profit booking in trade today. ONGC, Jindal Steel and HDFC witnessed buying interest. Click here for full list

Buzzing stocks

Bharti Infratel Ltd, the telecommunications tower unit of top Indian phone carrier Bharti Airtel Ltd, has set a price band of 210 rupees to 240 rupees a share for its initial public offering, the firm said on Friday.

The issue, which will open on December 10 for cornerstone investors and close on December 14, will raise about 45.34 billion rupees at the upper end of the price band. Full article

Extending gains for the second consecutive day, shares of multiplex major PVR soared by over 10 per cent after the company entered into an agreement with Cinemax India to acquire up to 95.27 per cent stake in the company for Rs 543 crore.

Indian generic drugmaker Ranbaxy Laboratories  will stop manufacturing its version of Pfizer  Inc's cholesterol fighter, Lipitor, while it gets to the bottom of the cause of a recent recall, the US Food and Drug Administration (FDA) said on its website. Full article 

Rupee, Bond steady after Q2 GDP

The rupee strengthened by 36 paise to 54.48 against the US dollar in early trade today at the Interbank Foreign Exchange on selling of American currency by exporters and banks. Besides, a higher opening in the domestic equity market and strengthening of the euro against the dollar overseas supported the rupee, dealers said.

The 10-year bond yield was at 8.17 percent, unchanged after the data. It was down 4 basis points after the central bank announced open market operations.

Benchmark indices continued to build on the massive gains of the last couple of trading sessions, with the Sensex up nearly 150 points to 19316, and the Nifty up 35 points to 3860.

Metals, capital goods and realty shares were the key gainers in early trade. Including the gains in the first half an hour of today's trade, the Sensex has now gained over 750 points since Tuesday.

 Brokers said some amount of profit taking was inevitable later in the session, as the market lacked fundamental triggers for a further upmove. They expect a volatile trend in the next couple of sessions.

Positive comments by rating agency Moody's and investment bank Goldman Sachs has lifted sentiment, but bigger worries like a slowing economy and tepid earnings growth remain.

There appeared to be more demand for mid-caps and small caps this morning, than frontline shares, which are now beginning to look over-valued after the run up over the last few sessions.

The BSE Midcap and Small Cap indices are up around 0.7% and 0.6%, compared to a 0.5% rise in the Sensex.

Among key gainers, Opto Circuit, Canara Bank, Lanco Infratech, Divi's Lab and Suzlon were up 3-4%. Yesterday's big gainers, Indiabulls Financial Services, Bajaj Auto, and Tata Motors, were under pressure, down 1-2%.