A historic day for the market, it was the mother of all rallies, the biggest single day rally that we have ever seen in our trading history. 650 point no less on the Sensex and it’s almost a 200-point rally on the Nifty, which has achieved many things for us.
We have cruised to all time highs; we have cruised above 16,000 and done it on historic volumes as well. Without being very close to futures and options settlement, we have clocked Rs 92,000 crore in volumes and the highest ever cash market volume seen in our trading history.
Lots of history today, all thanks to the global cues. The US had a big party overnight because it is 50 basis points not 25 as you know by now and that’s enough to end all markets into party mode across the US, Asia with the exception of China.
We had very meaningful rallies between 2.5-4 per cent rallies across all markets and we started with a big gap-up and continued to rally on closing at the highest point of the day. No sign of profit booking or anything like that; this market has just partied non-stop from 10 o’clock to 3.30 this afternoon.
It’s not the midcaps that have led it today; the leadership has been firmly with the Nifty and large cap space. If there is one theme that has played out in the midst of trade today is the comeback of the rate sensitives.
Because US rates have fallen, people believe that the RBI will move and it’s just a matter of time before our own interest rates start getting cut which was being expressed in big rallies in three rates sensitive sectors - banks, real estate and autos.
The banks led from the front by ICICI Bank and SBI, smaller banks like UCO, Indian also participated. Real estate had great leadership from DLF, the biggest of them.
Unitech, Omaxe, HDIL all looked strong. Even autos, which have been the biggest underperformers in the rate sensitive class, saw Maruti, M&M, Bajaj Auto leading a rally. Of course there were other sectors like metals where Tisco,SAIL and Sterlite looked very firm and of course it would be incomplete if we did not mention Reliance and ONGC.
So the leadership is right back to the large caps now. It’s a Nifty move today, it’s a secular breakout and it smacks of a breakout the way we have climbed to new highs at 16,000 plus. So astonishing rally today in the market and the way we closed particularly.
Of course, any market report would be incomplete if I didn’t mention sugar today. That is the sector of the day. Talks of ethanol blending, the pricing and the financial package, which seems to be on its way, sent sugars stocks up more than 20 per cent in a single-session. Large cap sugar stocks were up more than 20 per cent.
There were plenty of midcaps that did well today, but today was about a secular move. It was about that piece of magic that happens only once in a while, that big breakout into all-time highs, crossing the hump of the previous high in style with a big gap and closing above 16,000 as well.
So this has been on all accounts an absolutely magical and spectacular session on Dalal Street, the likes of which we don’t see very often.
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