Markets rally sharply; banks, realty stocks up

Mumbai: Bulls have come back with full force and took charge over bears. The markets have rallied quite sharply on the back of buying support from banking, realty, oil & gas and capital goods stocks, particularly rate sensitive sectors like banks and realty but volumes remained low, which seemed that institutional buying was very less.

Strong trading in European markets also helped Indian markets quite well. Midcap and small cap stocks were on buyers' radar. All BSE indices ended in green. Market breadth has remained in favour of advances.

Markets had opened on a quiet note and remained flat for first one hour of trade. But after that bulls came in limelight with big surprise and supported the markets for rest of the day. The Nifty closed above 4600 and the Sensex above 15500 levels.

The Sensex shot up by 1.96 per cent or 301.08 points to settle at 15,696.90, after hitting an intraday high of 15,732.75 and low of 15,357.98. The Nifty touched a high/low of 4664.05 and 4561.75, before ending the day at 4653, up 80.5 points or 1.76 per cent.

CNX Nifty Junior jumped 3.59 per cent to close at 7752.80, which led mostly by banking stocks like IOB, Axis Bank, Syndicate Bank, Kotak Mahindra, Bank of India, Bank of Baroda, IDBI Bank, Vijaya Bank, Canara Bank, Union Bank and Aurobindo Pharma, up over 5 per cent.

Market breadth was positive; about 1784 shares have advanced while 880 shares declined. Nearly 457 shares remained unchanged.

Amongst frontliners, HDFC was up 6.32 per cent, HDFC Bank 5.60 per cent, Maruti Suzuki 5.31 per cent, SBI 4.59 per cent and ONGC 4.77 per cent while NALCO fell -2.07 per cent, Cairn India -1.26 per cent, Bharti Airtel -0.93 per cent, Dr Reddy's Labs -0.92 per cent, Reliance Communication -0.92 per cent, Satyam -0.85 per cent and Grasim -0.25 per cent.

BSE Bankex was the star performer of the day, surged 4.29 per cent or 311.54 points to settle at 7,567.17 on the back of buying in IOB, Axis Bank, Kotak Mahindra, Bank of India, Bank of Baroda, Union Bank, HDFC Bank, SBI and ICICI Bank.

Another leader is Realty Index, which rose by 3.89 per cent or 228.32 points at 6,099.19 as buying seen in Indiabulls Real, Unitech, Anant Raj Ind, Peninsula Land, Parsvnath, DLF and HDIL.

Oil & Gas stocks like ONGC, Essar Oil, HPCL, Reliance Ind, BPCL, Petronet LNG and IOC have moved up higher barring Cairn India. Index was up 2.25 per cent or 225.73 points at 10,241.79.

Sharp run up also seen in capital goods stocks like Triveni Engg, Areva T&D, L&T, Punj Lloyd, Alstom Projects, Jyoti Structures and BHEL. Index jumped by 260.07 points or 2.15 per cent at 12,363.27.

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Power stocks like GVK Power, Reliance Infrastructure, Reliance Power, Torrent Power, Power Grid Corp, NTPC and Suzlon Energy have gained. Index was up 1.32 per cent at 2,703.40.

Buying witnessed in FMCG stocks like Colgate, Tata Tea, HUL, United Spirits, Godrej Consumer, Britannia and ITC. Index closed at 2,301.59, up 1.24 per cent.

Auto Index shot up by 1.23 per cent at 4,174.77 due to strong drive in auto stocks like Escorts, Maruti Suzuki, Apollo Tyres, Hero Honda, TVS Motor, Ashok Leyland and Tata Motors.

Metal Index gained 0.92 per cent to settle at 15,516.86 after remaining flat for major part of the day. Metal stocks like Ispat Industries, Jindal Steel, SAIL, Sesa Goa, Hindalco and Jindal Saw have shined.

IT Index was up 0.61 per cent at 4,440.20, which led by stocks like i-Flex Solution, Tech Mahindra, Mphasis, Wipro, Patni Computer and TCS.

Healthcare Index rose marginally by 0.58 per cent at 4,548.97 due to buying in Divis Labs, Aurobindo Pharma, Novartis India, Ranbaxy Labs, Cadila Health, Matrix Labs and Sun Pharma Adv.

Small Cap Index was up 112.19 points or 1.46 per cent at 7,781.30. Amongst small cap stocks, Vaibhav Gems, Unichem Labs, FDC, Sasken Comm, Indo Tech Trans, Oil Country, Saregama India, Ashiana Housing, Aptech, ISMT and Paper Products were up 8-20 per cent.

Midcap Index shot up by 100.46 points or 1.59 per cent at 6,400.18. Buying has seen in Atlas Copco, Torrent Pharma, Bank of Mah, Essar Shipping, UCO Bank, Shree Renuka Sugar, Sterlite Techno, Shree Precoated, EID, Syndicate Bank and EIH, which gained around 7-20 per cent.

Top traded counters on the bourses were Reliance Industries, Larsen & Toubro, Ranbaxy Labs, ICICI Bank and Reliance Petroleum.

Total turnover traded by the markets stood at Rs 58912.06 crore. This includes Rs 10974.53 crore from NSE Cash segment, Rs 42624.38 crore from NSE F&O and the balance Rs 5313.15 crore from BSE Cash segment.

On the global front, Asian markets ended mixed. Shanghai Composite was down 2.8 per cent, Jakarta Composite 0.8 per cent, Nikkei 0.04 per cent, Straits Times 0.3 per cent and Kospi 0.57 per cent while Hang Seng was up 0.12 per cent and Taiwan Weighted 0.4 per cent. European markets were trading strong, at the time of writing market report. FTSE 100 was up 1.6 per cent, CAC 0.9 per cent and DAX 1.3 per cent.