Mumbai: Markets ended higher on account of buying in technology, pharma, realty, capital goods, few banking and telecom stocks. Midcap and small cap stocks too were on buyers' radar. Strong global cues were supportive to the markets. However, metal, few oil and power stocks were under pressure.
Benchmark indices had started on a strong note; the Sensex and Nifty had jumped over 500 points and 150 points respectively in early trade due to sharp rally in global markets.
However, they lost more than half of their gains in the second half of the session on account of profit booking at higher levels and sell off was seen in metal stocks, but they didn't slip into the red and remained in the positive terrain throughout the day.
The Sensex rose 174.31 points or 1.54%, to settle at 11,483.40 and the Nifty closed at 3518.65, up 27.95 points or 0.8%. Both indices lost 387 points and 130 points from their intraday high of 11,870.22 and 3648.25, respectively.
Fresh shorts were seen in Nifty Futures at higher levels. Nifty Futures slipped into discount of 7.75 points from premium. Fresh short build up was seen in metal stocks. ONGC saw fresh short build up; its Rs 880 put added 3.9 lakh shares.
Aggressive call writing was seen at 3700 strike price. Mix of short covering and long build up was seen in private sector banks. However, long build up continued on technology stocks.
Among the frontliners, Satyam, Infosys, Idea Cellular, Jaiprakash Associates, ICICI Bank and Reliance Infrastructure shot up 5-8%. Tata Communication rose 11.93% and Sun Pharma gaind 8.89%.
However, Reliance Communication, Hindalco, SAIL, NALCO and ONGC fell 4-6%. HDFC Bank declined 3.47% and NTPC lost 2.70%.
BSE IT Index outperformed other indices and ended sharply higher for the second straight day; surged 149.45 points or 5.36%, to settle at 2,939.87.
Satyam and Infosys rose 6-7%. Wipro, TCS and Tech Mahindra gained 2-3%.
Pharma stocks like Glenmark jumped 17.38%. Sun Pharma was up 9.19%. Fortis Health, Lupin, Dr Reddys Labs and Piramal Health gained 5-6%.
Healthcare Index gained 151.46 points or 4.66% at 3,404.63. BSE Realty Index rose 50.67 points or 1.84%, to close at 2,804.74. HDIL rose 15.93%. Mahindra Life, Parsvnath, Indiabulls Real and Omaxe gained 5-9%. DLF and Akruti City were up 1-3%.
Capital Goods Index was up by 100.08 points or 1.14% at 8,876.20. Crompton Greaves, Areva T&D and Jyoti Structure were up 2-5.5%. Larsen and Toubro rose 1.55%.
Bankex gained 64.23 points or 1.08% at 6,038.07. Yes Bank, Bank of India, ICICI Bank, Allahabad Bank and Kotak Mahindra were up 4-7%. SBI gained 1.77%. However, Axis Bank, HDFC Bank and PNB tumbled 2-3.5%.
Oil & Gas Index went up by 73.64 points or 0.98% to 7,623.40, due to Reliance Industries, Cairn India, HPCL and Essar Oil were up 1.5-3%. However, ONGC fell 3.81%. GAIL, BPCL and IOC lost 1-1.8%.
Goldman Sachs has downgraded ONGC to sell from neutral and has added it to its conviction sell list. The research firm has lowered its 12 month target price on ONGC from Rs 1,000 to Rs 760.
FMCG stocks like Godrej Consumer, United Spirits, Nestle, HUL, Tata Tea and Britannia were up 2-4%. Index rose 0.81%, to close at 1,941.
Power Index was up by just 0.56% at 2,027.87. CESC, GMR Infra, Reliance Infrastructure and Tata Power gained 5-10%. Suzlon Energy rose 3.54%.
Auto Index closed with a gain of 13.10 points or 0.38% at 3,428.75. Apollo Tyres, Bharat Forge, Exide Industries, MRF, Amtek Auto and Bosch were gainers.
BSE Midcap Index jumped 1.6% or 61.45 points at 3,892.03 and Small Cap Index rose 101.74 points or 2.25%, to settle at 4,615.89.
Among the midcap stocks, ICSA jumped 39.59%. Spice Communication, Rolta, Rajesh Exports and Usha Martin rose 17-23%.
In the small cap space, English Ind, Heritage Foods, Sonata Software, Lloyds Metals and Dewan Housing jumped 15-20%.
Metal stocks lost shine; Index plunged 135.32 points or 1.94% to 6,851.71. Sesa Goa, JSW Steel, SAIL, NALCO and JindalStainless lost 5-7%. Hindalco, Jindal Steel and Hind Zinc fell 3-4%.
Sajjan Jindal says new order pipeline shrinking for steel industry. He further added that Steel price cut is likely by October end. Company will postpone commissioning of 3 mt smelter to Dec 2008.
Market breadth was in favour of advances in today's session; about 1818 shares have advanced while 1164 shares have declined. Nearly 202 shares remained unchanged.
Traded turnover was at Rs 63,360.10 crore. This includes 11,838.89 crore from NSE Cash segment, Rs 47,278.06 crore from NSE F&O segment and balance Rs 4,243.15 crore from BSE Cash segment.
However, Kirby Daley, Senior Strategist, Newedge Group said, There is no fundamental reason for the rebound. Some of the markets are oversold and are trying to find some equilibrium for a bottom range.
I do not believe this is a V-shape curve where one needs to get back in now because we will continue to go up. The markets haven’t bottomed out as yet. When it does, most global equity markets will trade in a lower range in for 12-18 months.
We are going to be in a long and protracted global recession."
On the global front, Asian markets ended on a strong note barring Shanghai. Nikkei jumped 14.15%. Kospi, Taiwan and Jakarta gained 5.5-6.5%. Straits Times rose 2.5% and Hang Seng gained 3.19%. Hong Kong will guarantee bank deposits and set up fund for providing capital to banks.
However, Shanghai fell 2.71%. European markets were trading sharply higher; FTSE was up by 5.24%. CAC and DAX gained 4.76% and 4.45%, respectively, at 4 pm.
United Kingdom inflation rate stood at 5.2%, which was highest since 1997. British Home Sales dropped to the lowest level in last 30 years.
Dow Jones and Nasdaq Futures were up close to 2%.
US is expected to announce comprehensive finance plan today. It is likely to include interbank lending and bank debt guarantees. It is also likely to include direct capital injections in financial institutions.
There are reports that US Treasury is going invest USD 250 billion in 9 major US banks out of USD 700 billion package.
Markets Snapshot
Profit booking sets in market after gap opening in the morning
Sensex off 387 points from day’s high, Nifty off 130 points from days high
Sensex up 174 points to end at 11483, Nifty up 28 points to end at 3518
Mid Cap and Small Cap stocks outperform broader indices
CNX Midcap Index up 1.4%, BSE Small-cap Index up 2.2%
BSE IT up 5.3%, Satyam up 8.2%, Infosys 6%, Rolta up 20%, Moser Baer up 6.8%
BSE Realty up 1.8%, HDIL up 16.5%, DLF up 2.9%
BSE Metals down 1.9% , Sail down 6%, Sesa Goa down 5.8%, Hindalco down 4.4%
Index Gainers: Tata Comm up 11.9%, Sun Pharma up 8.8% , Idea up 5.9%
Index Losers: Rel Comm down 4.9%, ONGC down 3.8%
Small Cap Gainers: ICSA up 40.5%, Tricom up 20.2%, Sonota Soft up 19.5%
Mid Cap Gainers: Glenmark up 15.1%, Educomp up 12.8%, Spice Com up 22.8%, M&M Financial up 14.6%
Results Reaction: IFCI down 2.4%
Favorable Adv - Dec Ratio at 5:2
Total market turnover at Rs 63360.10 crore vs Rs 56131.77 crore
NSE F&O Turnover at Rs 47278.06 crore vs Rs 40624.27 crore
F&O Snapshot:
Fresh shorts in Nifty Fut at higher levels, Nifty Fut slips into discount of 7.75 points from premium
Fresh short build up in metal stocks
Long build up continues on IT Stocks
Mix of short covering and Long build up in Private Sector banks
ONGC sees fresh short build up, Rs 880 put adds 3.9 lakh shares
Aggressive call writing at 3700 strike price
Market cues:
FIIs net sell USD 575.9 milion in equity
MFs net buy Rs 315 crore in equity
NSE F&O Open Interest up by Rs 3,397 crore at Rs 69,401 crore
F&O cues:
Futures Open Interest up by Rs 2,647 crore and Options Open Interest up by Rs 750 crore
Nifty Futures shed 5 lakh shares in Open Int, at 44-pt premium
Nifty Open Interest Put-Call Ratio (PCR) at 0.75 versus 0.73
Nifty Puts add 15 lakh shares in Open Interest
Nifty Calls add 8 lakh shares in Open Interest
Nifty 3100 Put adds 6 lakh shares in Open Interest
Nifty 3300 Put adds 4.8 lakh shares in Open Interest
Nifty 3400 Put adds 4 lakh shares in Open Interest
Nifty 3600 Call adds 5.5 lakh shares in Open Interest
Nifty 3700 Call adds 3.5 lakh shares in Open Interest
Comments
0 comment