The benchmark Nifty closed above the psychological 4900 mark for the first time in the last ten sessions. It rallied over 70 points and the Sensex over 200 points during the day led by buying in metal post rise in CRB Index, banking, infrastructure, FMCG and auto stocks.
Heavyweights Reliance Industries and Bharti Airtel were also the gainers in trade. However, selling in few stocks like ONGC, NTPC, Infosys, DLF, Cipla and Idea erased some gains. Positive global cues also pushed the markets higher since opening trade. European markets were trading 0.8-1.5% higher and US index futures were up 0.3% each.
Asian markets were quite supportive since initial trade; Nikkei rose 2.7%. Hang Seng, Straits Times and Kospi gained 1.3-1.65%. Shanghai and Taiwan markets were shut today. The US markets rose 1.7% on Tuesday, as banking stocks rallied post better-than-expected numbers for 2009 from Barclays.
Bharti Airtel bounced back after falling over 13% in last three days. The stock gained 2.8% in trade today. Sources told CNBC-TV18 that equity dilution by Bharti for Zain funding is unlikely and borrowing may be USD 6 billion. Among the other telecom stocks, Reliance Communications was up 1.8% while Idea Cellular fell 0.85%.
Tata Steel was the top gainer post its consolidated third quarter numbers of FY10. It reported a net profit of Rs 472 crore as against Rs 814 crore in Q3FY09. It was better-than-expectations; a Reuter’s poll of brokerages had forecast a net profit of Rs 175 crore. The stock jumped over 6%.
About 2.6% rise in CRB Index was the main reason behind sharp rally in metal stocks. The BSE Metal Index surged 3%; Hindalco rose 5%. SAIL and Sterlite Industries gained 3-3.5%. Jindal Steel was up just 0.2%.
The 30-share BSE Sensex closed at 16428.91, up 202.23 points or 1.25% and the 50-share NSE Nifty went up 58.25 points or 1.2% to 4914. The broader indices were also up 0.6-0.8% and advance:decline ratio was 2:1.
Mitesh Thacker of miteshthacker.com said the Nifty could see 5,030-5,050 levels. “The markets have already rallied by more than 150 points over the last few days. I think, 4,940-4,950 could be the level where one could take some kind of a breather. The pullback still seems to have some strength left in it; it might take 2-3 days to get past this 4,950 level, but overall looks like 5,030-5,050 could be tested as it approaches the expiry.”
Banking and financial was another leading sector; HDFC Bank and Axis Bank went up 3-4%. SBI, HDFC and ICICI Bank were up 1-1.9%. PNB was up just 0.3%.
About 4% rally in crude oil to USD 77 a barrel on Tuesday pushed the oil & gas exploration stocks higher. Reliance Industries was up 1.45% and Cairn India was up 2%. However, BPCL lost 1% and ONGC was down just 0.3%.
Siemens and L&T from the capital goods space gained 2-2.4%. BHEL rose 0.7% and ABB went up 0.3%. Jaiprakash Associates moved up 1.8%.
HUL and ITC from the FMCG pack were up 1.4% and 0.6%, respectively. Maruti Suzuki, Tata Motors and M&M from auto segment gained 1.2-1.7%. Hero Honda was up just 0.2%.
Tata Power advanced 2%. Among other power stocks, Power Grid went up 0.33% while NTPC fell 0.5% and Suzlon Energy lost 1%.
There was a mixed trend in technology space; Infosys declined 0.9% while Wipro and HCL Tech gained 0.2-0.3%. TCS was flat.
DLF and Unitech from realty pack slipped 1.3% and 0.67%, respectively.
Among other largecaps Ambuja Cements and Cipla fell over 1%.
The National Stock Exchange (NSE) will include following 11 stocks in the F&O segment from February 19, all those stocks saw huge buying interest. Adani Enterprise, Apollo Tyres, Areva T&D, BGR Energy, Fortis Healthcare and Mcleod Russel gained 2.5-4.7%. Onmobile Global, Videocon Industries, Mundra Port and Godrej Industries shot up 7-10%. However, Jain Irrigation fell 2%. These stocks witnessed jumped in volumes as well.
The market breadth was positive; about 1715 shares advanced while 1157 shares declined on the BSE. Nearly 287 shares remained unchanged.
In the midcap space, Eicher Motors shot up 12.05% and BOC India up 9.12%. However, KGN Industries, Indiabulls Real, HMT, Shriram City and Godfrey Phillip lost 2.4-4.4%.
In the smallcap space, Amtek India was up 19.72% and Indo Tech Transformers up 16.04%. JK Cement, Garware Offshore and Lloyds Metals gained 8-10%. However, Thinksoft was locked at 20% lower circuit for the second consecutive day. Nirlon, KLG Systel, Vindhya Telelink and Maharashtra Polybutenes fell 5-7%.
Tata Steel, Ruchi Soya, VIP Industries, Reliance Industries, Aban Offshore, Bharti Airtel and ICICI Bank were the most active shares on the exchanges.
The total markets turnover crossed Rs 1 lakh crore mark; it was at Rs 1,02,819.98 crore. This included Rs 13,199.13 crore from the NSE cash segment, Rs 85,124.49 crore from the NSE F&O and the balance Rs 4,496.36 crore from the BSE cash segment.
At 14 hours IST, consistent buying in metal, banking, capital goods and auto stocks along with heavyweights Reliance Industries, Bharti Airtel & HUL was helping the Nifty to stay on the higher side. About 0.5-1% rise in European markets was also supportive.
However, profit booking in technology and realty stocks along with ONGC, NTPC, Cipla, Ambuja Cements, Idea Cellular, BPCL, Ranbaxy and Suzlon Energy erased some of the early gains. The Nifty was hovering around the 4900 mark.
The Nifty February future was trading with 10 points discount. The Sensex was trading at 16351, up 125 points and the Nifty was at 4890, up 35 points.
The market breadth was positive; about 906 shares advanced while 351 shares declined on the NSE.
Top gainers – Tata Steel was trading at Rs 581.60, up 5.77%; Hindalco was at Rs 151.90, up 4.58%; Sterlite Industries was at Rs 784.10, up 2.94%; Bharti Airtel was at Rs 278.15, up 2.09%, HDFC Bank was at Rs 1,636, up 1.82%; Axis Bank was at Rs 1,063, up 3.59% and Siemens was at Rs 676.65, up 2.50%.
Top gainers on the BSE Midcap – Eicher Motors, Godrej Industries, Videocon Industries, Educomp Solutions and Monsanto India gained 4.5-9%.
Top losers on the BSE Midcap – Sun Pharma Advanced, Birla Corp, Shriram City, Indiabulls Real and Bharat Forge fell 2.5-3.7%.
Top gainers on the BSE Smallcap – Amtek India and Indo Tech Transformers rallied 16-17%. Numeric Power, Elpro Int and JK Cement went up 8-9%.
Top losers on the BSE Smallcap – Thinksoft plunged 20%. Nirlon, KLG Systel, Cholamandalam and Maharashtra Polybutenes lost 4.5-8.6%.
Tata Steel, Ruchi Soya, VIP Industries, Bharti Airtel, Reliance Industries, ICICI Bank and Hindalco were the most active shares on the bourses.
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