The markets finally closed the day with the Sensex gaining 51 points at 20,561 and the Nifty added 23 points to close at 6,157.
In the broader markets, the smallcap index gained 1% and the midcap index added 0.9% to outperform the BSE benchmark index. The Sensex closed gaining 0.2%
The markets opened the first trading day of the year 2011, scaling a seven week high, gaining 112 points at 20,621 on the back of gains led by rally in auto and metal stocks.
The positive Asian markets too bolstered the Indian sentiment.
Broader markets opened higher with the smallcaps and the midcaps gained nearly 1% each.
However, the markets pared its gains in the last trading hour and touched the day's low of 20,531.
On the Asian front, all the indices closed in the green. Hang Seng and Shanghai Composite closed gaining nearly 2% at 23,436 and 2,809 respectively. KLSE Composite, Straits Times and Seoul Composite added 1% each. Jakarta Composite and Taiwan Weighted edged higher to close adding 0.5% each. The Nikkei index was closed for the day.
In accordance with the global markets, the European markets too had a positive start for the year. CAC, DAX opened 1% higher while FTSE remained close.
Among the BSE sectoral indices, Metal index gained 2% lead the chart followed by Consumer Durables, PSU and Bankex.
Auto and IT indices down 0.1% each were the top losers languishing at the bottom of the chart.Oil & Gas index closed the day flat at 10,598.
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.
Following are some of the scrips that were in news today
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 day arrested a senior official Sanjay Gupta (associate vice president, accounts, of Hero Corporate Services), in connection with the estimated Rs 300-crore (Rs 3-billion) Citibank fraud case.