The markets rose for the 9th consecutive session, powered by big bang reforms announced by the government allowing increased foreign investment in key sectors like aviation, retail, and broadcasting. The RBI further boosted the markets by cutting the cash reserve ratio, injecting more liquidity. Stocks in rate sensitive, media, retail, and aviation sectors gained on the reforms and policy measures. The Sensex closed up 78 points at 18542 and the Nifty gained 32 points to end at 5610.

1. 'Big Bang Reforms' move markets up for 9th straight session
Market Summary
17-Sep-2012
The markets started gap up yet again powered by ‘big bang’ reform measures announced by government post market hours
on Friday. The government had approved the FDI in aviation, retail, power and broadcasting carriage services sectors on Friday.
Additionally RBI today, in its credit policy review, has slashed cash reserve ratio (CRR) by 25 basis points to infuse about Rs. 17000
crore of liquidity into the system. The buoyant sentiments moved Nifty and Sensex to their respective 52 week highs today. Both these
benchmarks closed in green for the 9th straight session with Nifty surpassing psychological 5600 and Sensex surpassing 18500.
Rate sensitive stocks led the gainers pack on positive surprise by RBI. RBI has cut the Cash Reserve Ratio by 0.25% i.e. from 4.75%
to 4.50%. The Bank Rate and Repo Rate were kept unchanged at 9% and 8% respectively citing inflationary environment.
Media stocks were jubilant today after the government announced the liberation of foreign investment in the broadcasting sector.
(What’s Hot)
Retail stocks also surged after the government announcement to allow FDI in multi-brand retail. However, approving 51% FDI in retail,
the central government said it will be up to the state governments to decide whether they want to implement FDI in retail in their
respective states. (News)
Aviation stocks were sanguine in green post cabinet decision, on Friday, to allow foreign airlines to buy up to 49 per cent stake in local
carriers, a step that is expected to give a boost to the cash-starved aviation industry. Stock of Jet Airways was an exception to lose over
2% of its value. (News)
The market breadth on the BSE closed in positive. Advances and declining stocks were in a ratio of 1628:1269 while 110 scrips
remained unmoved.
The BSE Sensex ended at 18542.31, up 78.04 points or 0.42%. The 30 share index touched a high and a low of 18715.03 and
18480.54 respectively. 18 stocks advanced against 12 declining ones on the benchmark index.
The S&P CNX Nifty gained 32.35 points or 0.58% to settle at 5610.00. The index touched high and low of 5652.20 and 5585.15
respectively. 29 stocks advanced against 21 declining ones on the index.
Sensex Nifty
The BSE Mid-cap index moved up to 6316.02 and gained 1.14% while Small-cap index jumped up by 1.13% to 6697.66.
The broader BSE 500 index increased to 7016.58 (up 0.79%) and S&P CNX 500 index rose to 4383.10 (up 0.79%).
The volatility as denoted by INDIA VIX gained 15.60% at 17.78 from its previous close of 15.38 on Friday.
Sectors in action
On the BSE Sectorial front, Real Estate (up 6.21%), Capital Goods (up 3.74%) and Banks (up 3.24%) were the top gainers.
FMCG (down 3.66%), Information Technology (down 3.18%) and Healthcare (down 1.81%) were the top losers.
The Angels and the Devils
Jindal Steel and Power Limited (up 5.99%), ICICI Bank (up 5.39%), State Bank of India (up 5.36%), Larsen And Toubro Limited (up
4.35%) and Bharat Heavy Electricals Limited (up 4.30%) were the top gainers on the Sensex.
ITC Limited (down 5.48%), T Consultancy Services Limited (down 5.03%), Dr. Reddys Laboratories Ltd. (down 4.30%), Hindustan
ata
Unilever Limited (down 2.76%) and Infosys Limited (down 2.67%) were the top losers on the Sensex.
Benchmark Drivers
ITC Limited (-95.79 points), ICICI Bank (74.42 points), Reliance Industries Limited (69.40 points), T Consultancy Services Limited
ata
(-49.64 points) and Larsen And Toubro Limited (42.46 points) were the major Sensex drivers today.
On the other end ITC Limited (-25.04 points), ICICI Bank (18.81 points), Reliance Industries Limited (17.69 points), T Consultancy
ata
Services Limited (-12.92 points) and Larsen And Toubro Limited (11.19 points) were the major Nifty movers today.
Going Forward
S&P CNX Nifty is now pivoted at 5615 levels for next session. The next resistance is at 5646 levels. On the downside it has support at
5579 levels.
S3 S2 S1 PIVOT R1 R2 R3
5512 5548 5579 5615 5646 5682 5713
Similarly, Sensex has a pivot at 18579 with first level of support and resistance at 18443 and 18678 respectively.
S3 S2 S1 PIVOT R1 R2 R3
18208 18344 18443 18579 18678 18814 18913

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