Indices in the Indian stock market held onto their gains during the closing stages of the day, thus capping off what could be called as a strong session. While Sensex ended higher by around 160 points (up 0.8%), NSE-Nifty closed with gains of around 65 points. Both BSE Mid Cap as well as BSE Small Cap indices also edged higher, gaining 0.7% and 0.4% respectively. More than two stocks gained for every stock that closed the day in the red on the Sensex.
Other Asian indices also closed the day in the green whereas the European markets remained closed on account of Christmas holidays. The rupee was trading at Rs 54.8 to the dollar at the time of writing.
With no major development of note in the Indian markets, it looks like today's rally was due mostly to global factors. It is worth adding that the Japanese benchmark rose to its highest level in 9 months on the back of possibility of more stimulus measures and this positive sentiment seems to have rubbed off on other regional indices like India.
Care ratings, the third of the three major ratings firms in India made its debut in the stock markets today. The issue, which was priced at Rs 750 per share, closed around 24% higher, thus translating into a strong listing. Given the kind of demand its shares had generated, investors were expecting strong gains on the listing day and the firm did not disappoint. However, there is a feeling that given today's gains, the gap in valuations between the firm and its two major rivals has now narrowed down.