Sensex jumps over 200 points, Nifty breaks 5700

The BSE Sensex traded over 200 points higher tracking positive Asian stocks Friday. The broader Nifty jumped above the key resistance of 5,700 while the rupee continued its winning streak and traded at 52.57 to the dollar. The government stuck to its H-2 borrowing boosting sentiments on the Street. Indian markets had been consolidating for the past few days after the sharp up move that saw the Sensex hit a 14-month high last week. Analysts have turned positive in their outlook since the government unleashed a series of reforms aimed at promoting foreign investment and reining in high fiscal deficit. "This market is headed for much higher levels... the rupee is trading above its 200 day moving average... targets of 5,900-5,950 are possible on the Nifty," independent analyst Sarvendra Srivastava said. Markets rose despite a downward revision of India's GDP by Fitch. Sentiments were supported by strong gains in Asian shares, which rose on hope that economic reform and budget plans unveiled by Spain will help the debt-saddled nation manage its debt imbalances. All groups of stocks traded higher on the BSE. Metal, power, realty, auto, and consumer durables stocks traded with over 1 per cent gains. On the Nifty, 44 of the 50 stocks traded higher. Tata Power was the top gainer, rising 3.5 per cent. Jaiprakash Associates, Tata Motors and Hindalco also saw strong gains, rising 2-3 per cent. Drug makers declined in early trade. The Group of Ministers (GoM) recommended revised pricing mechanism under New Pharma Pricing Policy yesterday, which suggests that the pricing cuts are worse than expected. Ranbaxy was the top Nifty loser, down 0.8 per cent. Lupin, which has debuted on the Nifty today, traded 0.3 per cent lower. However, Cipla traded with marginal gains. Among other stocks, Kingfisher Airlines declined 5 per cent after promoter Vijay Mallya said that the United Breweries Group will not use proceeds from a possible stake sale in United Spirits to infuse funds into the debt laden carrier. The market breadth was strong with nearly 90 per cent stocks rising on the broader BSE 500.

Sensex jumps over 200 points, Nifty breaks 5700

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