The Indian stock market extended its winning streak to a fourth successive session as investors lapped up stocks, betting on hopes the government will speed up reforms. A firm trend in global markets amid slightly easing worries about the looming U.S. fiscal cliff, the recent rating upgrades on India's sovereign credit and stocks by Moody's and Goldman Sachs, respectively and hopes of some monetary easing by the central bank too contributed to the surge.
The market suffered a setback of sorts a little before the release of seond quarter GDP data, but recovered swiftly despite the figures falling short of expectations. And then, despite high volatility, it managed to stay afloat in the positive zone to eventually sign off with notable gains.
Data showing heavy buying by foreign institutional investors in recent sessions and the finance minister's statement about setting up of the National Investment Board aided sentiment.
According to the data released by the government this morning, the Indian economy grew by a lower than expected 5.3% in the July-September period of the current financial year, due largely to poor performance of manufacturing and agriculture sectors. The gross domestic product had expanded by 6.7% in the same period of last fiscal. In the first quarter of this fiscal it had grown 5.5%.
During the July-September quarter, the manufacturing sector grew marginally by 0.8%, against 2.9% growth in the same period of 2011-12. Farm sector output expanded by just 1.2% in the July-September period this fiscal against 3.1% in the same period last year.
Mining and quarrying sector recorded a growth of 1.9% during the quarter, as against a contraction of 5.4% in the second quarter of 2011-12.
The BSE benchmark Sensex, which declined to 19,186.30 around mid morning, ended the day with a gain of 168.99 points or 0.88% at 19,339.90, off the day's high of 19,372.70. The Nifty index of the National Stock Exchange closed at 5879.85, recording a gain of 54.85 points or 0.94%. The Nifty touched a low of 5827.85 and a high of 5885.25 during the day.
Automobile and realty stocks started off on a bright note, but lost their way mid way through the session and finally ended the day on a mixed note. FMCG stocks were subdued almost right through the day.
Metal stocks were in demand and mirroring their surge, the BSE Metal index spurted more than 2%. Power, PSu, bank, consumer durables and oil stocks too mostly closed on a firm note. Select capital goods, information technology and healthcare stocks moved higher.
Jindal Steel & Power, up nearly 5.5%, was the top gainer in the Sensex. Other metal stocks in the Sensex, Sterlite Industries (3.3%), Hindalco (2.7%) and Tata Steel (2.3%) too closed on a high note.
BHEL ended nearly 5% up. ONGC notched up a gain of 4.5%. HDFC, GAIL India, Cipla, Bharti Airtel (the telecom stock moved up following Bharti Infratel getting the approval for its IPO), Wipro, State Bank of India, Tata Power, ICICI Bank, Mahindra & Mahindra and Tata Consultancy Services gained 1% - 2.5%. NTPC, Dr Reddy's Laboratories and HDFC Bank also closed on the positive side.
Ultratech Cement gained 5.5%. IDFC, Bank of Baroda, BPCL, Kotak Bank, Grasim Industries, Punjab National Bank, Lupin, Sesa Goa and Reliance Infrastructure moved up by 2% - 3.5%.
Jaiprakash Associates, HCL Technologies, Axis Bank, DLF and Siemens also closed higher.
PVR Ltd shares rose sharply. Cinemax too attracted heavy buying in the session. These two stocks moved higher following an announcement from PVR about an open offer to the shareholders of Cinemax India for acquisition of upto 72.80 lakh equity shares of face value of Rs 5 each at Rs 203.65 per share.
PVR's board of directors at meeting held on Thursday, 29 November 2012, approved the purchase of entire 69.27% stake from the promoters of Cinemax India at Rs 203.65 per share for a total consideration of Rs 394.97 crore.
Glenmark Pharmaceuticals and Fortis Healthcare also moved higher on stock specific news.
The market breadth was positive. Out of 3089 stocks traded on BSE, 1687 stocks moved up. 1286 stocks declined and 116 stocks ended flat.