Markets start 2011 on a sedate note

After a robust 2010 wherein the Sensex had surged 17%, the markets have started the year 2011 on a positive note, although they closed on a sedate note. The markets after a firm start, consolidated gains during the day and finally settled 51 points higher at 20,561. The NSE Nifty was up 23 points at 6,157. In the broader markets, the small-cap index gained 1%  and the mid-cap index added 0.9% to outperform the BSE benchmark index.

The Sensex scaled to a fresh seven-week high, gaining 112 points at 20,621 on the back of a rally in auto and metal stocks.The positive Asian markets too bolstered the Indian sentiment. However, the index pared some of its gains in the last trading hour and touched the day's low of 20,531.

 

Sensex in the past decade
Year	DAY 1	Year End
2001	-0.43	-17.52
2002	-0.50	4.04
2003	0.38	72.23
2004	1.31	11.62
2005	1.16	40.70
2006	-0.08	46.82
2007	1.13	45.51
2008	0.07	-52.48
2009	2.66	76.35
2010	0.54	16.80
2011	0.20	-

As seen in the table above, the Sensex has started on a flat note when compared to the last ten years. The two years at the start of the decade followed by 2006 were the only years where the Sensex opened in the negative. After that the least opening was seen in 2008 where the index gained 0.07% and then is 2011 at 0.2%

On the Asian front, all the indices closed in the green. Hang Seng rallied nearly 2% to 23,436. KLSE Composite, Straits Times and     Seoul Composite added 1% each. Jakarta Composite and Taiwan Weighted also edged higher. The Nikkei and Shanghai indexes were closed today.

European markets too have started the year on a positive note. The CAC and DAX were up over 1% each in early trades. The FTSE remained close.

Among the BSE sectoral indices, Metal index gained 2% followed by Consumer Durables, PSU and Bankex.

Tata Steel and Sterlite up 3% each were the top gainers on the Sensex. Reliance Infrastructure, Jaiprakash Associates, Reliance Communications, HDFC Bank, Mahindra & Mahindra and DLF which gained 1% each were the other significant gainers.

On the losers list were Bajaj Auto down 4%, Wipro, NTPC shed 1% each and TCS, RIL, ONGC lost between 0.1% -0.4%

The market breadth was very positive. 2010 stocks had advanced while 890 had declined.

STOCKS IN NEWS

Indraprastha Gas was trading at a lifetime high of Rs 350 after the company raised the product prices with effect from January 1, 2011.

Timken India started the year on a strong note by hitting the 20% upper limit of circuit filter at Rs 213 on back of huge volumes.The board of directors of the company last week had approved a plan to expand its tapered roller bearing manufacturing capacity in India.

IT firm Patni Computer Systems started the day by dropping nearly 4% in the early trade on BSE, after the Nasdaq-listed iGate (tipped to be the front-runner for acquisition of a majority stake) called off announcement of its "significant corporate development", where it was expected to notify its deal for buying 63% stake in the company.

There was some bad news for the Hero Group as police today arrested a senior official  Sanjay Gupta (Associate Vice President (Accounts) of Hero Corporate Services), in connection with the estimated Rs 300 crore Citibank fraud case.