QUICK REVIEW: 03/02/12

Nifty hits 13-1/2-week high

Key benchmark indices trimmed gains in late trade after hitting fresh intraday highs. The 50-unit S&P CNX Nifty hit its highest level in 13-1/2 weeks in late trade. The barometer index, BSE Sensex, hit its highest level in more than 12 weeks. The Sensex was provisionally up 155.65 points or 0.89%, up close to 205 points from the day's low and off about 45 points from the day's high. Data showing stepping up of buying of Indian stocks by foreign institutional investors (FIIs) recently boosted sentiment. A private survey showing that the services sector grew at its fastest pace in six months in January 2012, also aided the rally as the market extended this year's strong gains.

Index heavyweight Reliance Industries (RIL) extended gains in late trade. Cement stocks extended Thursday's gains after monthly dispatches data. Realty stocks extended recent gains. Auto stocks rose on good vehicle sales in the month just gone by. Dr Reddy's Laboratories erased intraday gains triggered by strong Q3 results. Sun Pharmaceutical Industries hit record high. Banking stocks reversed initial losses. The market breadth was positive.

The market regained positive terrain after slipping into the red for a brief period after a flat opening. Key benchmark indices weakened to hit fresh intraday lows after alternately swinging between positive and negative terrain in morning trade. The Sensex recovered from intraday low and moved into the positive terrain in mid-morning trade after a private survey showed that the services sector grew at its fastest pace in six months in January 2012.

A bout of volatility was witnessed as key benchmark indices swung between positive and negative terrain in early afternoon trade. The market was range bound in afternoon trade. The market surged to hit its highest level in more than 12 weeks in mid-afternoon trade. The market trimmed gains after hitting fresh intraday high in late trade.

Foreign funds stepped up buying of Indian stocks, with a net inflow of a massive Rs 1941.23 crore on Thursday, 2 February 2012, as per provisional data from the stock exchanges. FIIs had mopped up shares worth a net Rs 1676.49 crore on Wednesday, 1 February 2012, as per provisional data from the stock exchanges. FIIs made substantial purchases of Indian stocks last month. FIIs bought shares worth a net Rs 10357.70 crore in January 2012, as per data from Securities & Exchange Board of India (Sebi).

As per provisional figures, the BSE Sensex was up 155.65 points or 0.89% to 17,587.50. The index surged 198.68 points at the day's high of 17,630.53 in late trade, its highest level since 9 November 2011. The index fell 49.15 points at the day's low of 17,382.70 in morning trade.

The S&P CNX Nifty was up 48.35 points or 0.92% to 5,318,25, as per provisional figures. The index hit a high of 5,334.85 in intraday trade, its highest level since 31 October 2011. The index hit a low of 5,255.55 in intraday trade.

BSE clocked turnover of Rs 2916 crore, lower than Rs 3679.07 crore on Thursday, 2 February 2012.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,641 shares rose and 1,224 fell. A total of 115 shares were unchanged.

Among the 30-member Sensex pack, 22 rose while the rest fell. Sterlite Industries, Hindalco Industries, Tata Steel and Jindal Steel & Power fell by between 1.57% to 3.33%.

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