Sensex leaps on global cues…Nifty reclaims 4800

Indian stocks rallied on Monday, kicking off the new trading week on a solid note, as investors chose to overlook the continued uproar in parliament and instead focused on the positive development in the eurozone. The BSE Sensex ended above 16,000 while the NSE Nifty finished above the 4,800 mark.

Key Indian stock indices accelerated on the back of healthy gains in other Asian markets and a positive opening in the European markets.

Reports said that European leaders have prepared draft rules for the region's bailout fund while Germany and France are looking at how to deepen fiscal integration in the euro zone. Also adding to the positive mood was news that US retail sales jumped over the Thanksgiving weekend.



"For India, the big question is whether the Parliament will function without much disruption for the remainder of the winter session. Important bills are yet to be presented and debated, including the Lokpal Bill. FDI in retail has become the latest issue of confrontation between the Government and the Opposition parties apart from a whole host of other ones like inflation, corruption and black money.

Q2 GDP data due out on Wednesday is another key event besides reports on manufacturing, services, exports and auto sales. Global news will also continue to drive the sentiment partially. So, hold on tight as volatility and uncertainty are less likely to vanish in a hurry. Stick to a measured and stock centric approach. Don't venture into any counter without proper due diligence," says Amar Ambani, Head of Research, IIFL.

However, retail shares were under pressure, reversing some of last week’s gains, as various political parties persisted with their opposition to opening up the sector to the foreign companies.

Today’s advance was mainly led by the Large Cap stocks. The broader indices under-performed the frontline shares. Market breadth was pretty strong with two-thirds of the stocks on the BSE closing higher.

The BSE Sensex closed at 16,171, up 475 points or 3% from the last close. It touched a day’s high of 16,186 and a day’s low of 15,888. It had opened at 15,890.

The NSE Nifty shut shop at 4,851, up 141 points or 3% over the previous close. It touched a day’s high of 4,859 and a day’s low of 4,766 after opening at 4,769.

Hindalco, Jaiprakash Associates, Tata Motors, Sun Pharma, HDFC, Sterlite Industries, SBI, Jindal Steel, Coal India, BHEL, ICICI Bank, IDFC, ACC, Kotak Bank, Sesa Goa, PNB, RCOM, ONGC and SAIL were among the leading gainers.

Bajaj Auto was the only notable loser in the two main indices.

The BSE Small-Cap index and the BSE Mid-Cap index were up 1.8% and 1.5%, respectively.

Educomp, FT, Amtek India, Thomas Cook, JSL, JSW Steel, Glodyne, NCC, Vakrangee Software, Jyoti Structures, Hindustan Oil Exploration, Patel Engineering, Indiabulls Power, Consolidated Construction, BGR Energy, IVRCL Assets, DCB and Crompton Greaves were the top gainers in the BSE 500 index.

Shoppers Stop, SKS Microfinance, Provogue India, Pantaloon India, CESC, Navneet Publication, Redington India, Trent and Dalmia Bharat Enterprises were the big losers in the broader market today.

Metals were by the far the biggest gainer. The BSE Metals index surged 5%. Banking, Oil & Gas and PSU indices were up 3% apiece. Realty, Power, Teck and Capital Goods indices were up 2% to 2.5%. FMCG, IT and Pharma indices rose by 1.5% to 2%. Auto and Consumer Durables indices gained 1% each.

European leaders have prepared draft operational rules for the European Financial Stability Facility (EFSF), the region's bailout fund.

The budget committee of Germany's lower house of parliament is scheduled to vote on the amended guidelines for the euro zone's rescue fund. Eurozone and EU finance chiefs are also scheduled to discuss EFSF terms of reference.

Most other Asian market closed sharply higher amid speculation that the IMF will help Italy financially after the nation’s borrowing costs surged.

The IMF is preparing a 600 billion euro ($794bn) loan for Italy in case the country’s debt crisis worsens, according to reports.

However, an IMF spokesperson denied reports that it was in discussions with Italian authorities on a financing plan.

Belgium, Italy, Spain and France are due to raise money via debt auctions this week. Jobs data and other important statistics from the US will also be in focus this week.

Europe's Stoxx 600 benchmark index was up by almost 3% while the region's main benchmarks also gained 3% each.

US stock futures were pointing to a strong opening today after Thanksgiving retail sales climbed to a record and media reports increased confidence in European leaders' ability to resolve the region's long-running debt crisis.

US retail sales during the Thanksgiving weekend increased 16% to $52.4 bn, according to the National Retail Federation, citing a survey conducted by BIGresearch. The average shopper spent $398.62, up from $365.34 a year earlier.