The Indian markets displayed a strong closing today with both Equity benchmarks recouping previous session’s losses smartly. The Sensex actually gave a rally of nearly 400 points intraday. Most of it was attributed to short covering and value buying which was evident across the sectors.
At the closing, the 30-share BSE Sensex jumped 352.03 points to close at 32,949.21 which was a smart rise of 1.08 percent. In all the market, breadth was totally positive with only 835 shares declining against the 1,843 shares that advanced on the BSE. The 50-share NSE Nifty fared still better by gaining 1.22 percent or 122.60 points to close at 10,166.70.
All the sectoral indices traded in the green today and the rally was led by auto, capital goods and consumer durables good with index in each rising by more than 400 points.
The gas stocks were on fire today. The state-run GAIL made a 52 week high surging 7 percent in a single day to hit Rs 489.30 per share. Other gas stocks like Indraprastha Gas, Mahanagar Gas and Petronet LNG also rallied between 3-5 percent.
Kotak has released a report on December 1st which said,
“We see gas sector stocks as key beneficiaries in the possible inclusion of gas under GST in the near term, which will enhance the competitiveness of LNG against alternate fuels.“
There has been a recommendation of inclusion of gas under GST by the Ministry of Petroleum and Natural Gas.
The Equity benchmarks had opened in green today after losing heavily in the previous session. The earlier bounce back was backed by short covering in beaten down sectors which were auto, banks and metal stocks.
All in all, it was a good day for the Indian markets.
Source: The Hindu