MARKET OUTLOOK- CAUTIOUSLY OPTIMISTIC

MARKET INSIGHTS: On Wednesday Dec 01, 2010,
The domestic markets extended their gains for the third consecutive day supported by the good set of economic data. The joy of better than expected GDP numbers got doubled with the report that the output of six infrastructure industries, which had showed significant moderation in last few months, surged by a robust 7% in October 2010, against a 3.9% growth recorded in the same month last year, not only that Export for the month of October too showed a good growth coupled with decline in imports that led the trade deficit coming down significantly on the same time The seasonally adjusted HSBC PMI recorded a value of 58.4 in November, rising from October's reading of 57.2. The global cues too remained supportive and helped the markets gain strength, all the Asian markets closed in green while the European markets too traded with good gains. Earlier the start of the markets was flat tracking the sluggishness in the global markets, as the US markets closed lower while the Asian pack was not looking confident. But the markets started inching higher rejoiced with the good GDP numbers and the Finance Minister Pranab Mukherjee's statement that India can achieve GDP growth between 8.5 percent and 8.75 percent in the current fiscal that ends in March 2011 acted as a catalyst for the markets.  March 2011 acted as a catalyst for the markets.















TheBSE Sensex touched a high and a low of 19,870.19 and 19,525.15 respectively. (Provisional)
whilethe S&P CNX Nifty soared 100.85 points or 1.72% to end at 5,963.55 (Provisionally)There were 25 advances against 5 declines on the index. The S&P CNX Nifty touched a high and a low of 5,971.00 and 5,865.55, respectively (Provisional). There were 40 advances against 10 declines on the index. (Provisional).

In the BSE sectoral space, Metal up 3.24%, Realty up 3.13%, PSU: up 3.12%, Bankex up 2.98% and CD up 2.01%, while there were no laggards. The broader indices ended in the positive region; the BSE Mid-cap index zoomed 2.62% while the Small-cap index rocketed 3.06%. There were 2384 advances against 554 declines on the index. (Provisional).

All Asian equity markets finished in the green terrain on Wednesday on the back of good economic data, sharp increases was reported in purchasing managers indexes (PMI) in China, which was mainly driven by output and export orders, revealing strength both domestically front and overseas. Shanghai Composite advanced 3.27 points or 0.12% to 2,823.45, Hang Seng rose 241.81 points or 1.05% to 23,249.80, Jakarta Composite surged 87.88 points or 2.49% to 3,619.09, KLSE Composite was up 0.19 points or 0.01% to 1,485.42, Nikkei 225 jumped 51.01 points or 0.51% to 9,988.05, Straits Times soared 37.24 points or 1.18% to 3,181.94, Seoul Composite increased 24.69 points or 1.30% to 1,929.32 and Taiwan Weighted added 147.63 points or 1.76% to 8,520.11.

                                 MARKET OUTLOOK- CAUTIOUSLY OPTIMISTIC