Sensex marches towards 17K

Today's major news
Larsen & Toubro bags Rs747-crore orders; the stock ends 1.76% higher
Food inflation rises to 16.74%
JSW Energy enters MoU with Osho, IOM; the stock closes 2.35% higher

Global signals
European stocks edge higher on Thursday ahead of interest rate decisions by the European Central Bank and Bank of England. As of writing this report, FTSE 100 was trading at 0.24% higher.
All the major Asian indices closed in the positive territory except Shanghai Composite and Jakarta Composite. SGX Nifty closed 79 points higher.
The US stock index futures signal higher opening on the Wall Street on Thursday. Investors will watch the latest weekly initial jobless claims numbers and April international trade data, while May's US Federal Budget will also be announced later through the day.
Indian indices
Domestic bourses extended their gains on the second consecutive day. As noticed in the past few trading sessions, the market pared its gains in late afternoon. But the case was different today as the indices managed to hold its early gains to close the session on a strong note. Positive Asian markets coupled with robust buying in auto, metal and realty sectors powered the key benchmark indices to surge over 1.5%, brushing aside the rising inflation (food inflation rose to 16.74% for week ended May 29, 2010 from 16.55% previous week) worries.
The bellwether Sensex started the session on a positive note, 11 points up at 16669. The indices gathered momentum as the session progressed. The market spent time in consolidation mode throughout the morning session. It remained firm in afternoon session despite of negative opening in the European markets and rise in food inflation. However, the Sensex rallied further in late afternoon, with no hiccups as the European indices turned positive. At closing bell, the Sensex quoted at 16922, higher by 264 points and the Nifty signed off with gains of 78 points at 5079.
Market sentiment
The market breadth was highly constructive as advancing shares outdid the declining stocks twice. Of the 2,914 stocks traded on the BSE, 1,877 stocks advanced, whereas 902 stocks declined. Hundred and thirty five stocks traded unchanged.
Sectoral & stock screening
With the bulls charging ahead all through the day, it was all green on the sector indices front. The BSE Auto topped the chart with gains of 2.98%, followed by the BSE Metal that gained 2.12% and the BSE Realty that surged 1.80%.
In ‘A’ group stocks, Pantaloon Retail surged the most by 6.90%, followed by Sun TV Network that rose 5.78% and Reliance Infrastructure that jumped 5%. On the losers’ list, Bajaj Holdings lost the most by 2.52%, followed by Apollo Hospital Enterprises that slid 1.64% and Petronet LNG that fell 1.51%.
Viewing volumes
Industrial finance company - IFCI saw highest trading with over 0.94 crore shares changing hands on the BSE, India’s second largest developer - Unitech (0.67 crore shares), wind turbine major - Suzlon Energy (0.59 crore shares), aluminum major - Hindalco Industries (0.45 crore shares) and India's second largest listed cellular services provider by sales - Reliance Communications (0.30 crore share).