Market Outlook for 25 01 2011

The key benchmark indices edged lower but regained strength in morning trade after seeing a bout of volatility at the onset of the trading session. The Sensex regained the psychological 19,000 mark soon after falling below that level for a short while. The market extended gains in mid-morning trade and continued to pare gains till early afternoon trade, after striking a fresh intraday high. Banking shares saw an across-the-board rally, buoyed by good operating performance by sector majors SBI and ICICI Bank. Market breadth remained strong. The key benchmark indices logged in decent gains and closed on a positive note, with the Sensex and Nifty closing up by 0.8% each. Mid-cap and small-cap indices also closed up by 0.8% each. Among the front liners, SBI, Tata Steel, ONGC, Maruti Suzuki and HDFC gained 3–4%, while Wipro, RIL, Cipla, Hindalco and RCOM lost 1–3%. Among mid caps, Core Projects, Glodyne Tech, Prestige Estates, KSK Energy and Monnet Ispat gained 9–10% while Sunteck Realty, KGN Inds, Jyothy Lab, Hathway Cable and Gujarat NRE Coke fell 3–5%.