Mkts surge ahead post-trust vote, +ve sentiment seen

It was a spectacular day for markets. It seemed like a gap up start after all the good news and cheer that the government is safe. The best part about today’s trade was that we actually built in the gap up and the Sensex closed up with almost a 850 points rally. It was the biggest rally that we have seen since March 2008 and it picked up for the Nifty as well. We also managed to close above 4,450. The broader market was more than participating and the Nifty Junior continued to outperform most indices. The breadth was fantastic in trade today and we closed up with good turnover, which reflects good participation as well.

Today, it was all about the fallen heroes. Everything that had struggled the most, bounced hard today like banking where the stocks had underperformed. There is also talk of reform taking place swiftly. All banking stocks whether its private or public like HDFC, HDFC Bank, and ICICI Bank bounced hard. From the rate sensitives, real estate didn’t have too bad a session. DLF and Unitech were looking quite sharp. Infrastructure and capital goods have been the fall guy and that entire pocket looked quite strong.

BHEL, Siemens, and Punj Lloyd, and many other stocks were looking quite upbeat and there has been a rub-off effect for traders. All ADAG stocks ‑ Reliance Power, RNRL, and Reliance Capital ‑ bounced sharp and hard.

Crude has been consistently easing off. The global markets are not doing too badly and many Asian markets are working on par with us in terms of performance. So, there seems to be a turnaround in sentiment for trade right now.