Indices had a firm start today, helped by strong gains across other Asian markets. However, they gave up all their gains and slipped into the red before noon as select frontline stocks remained under pressure. They recovered in the afternoon, led by technology stocks and touched their highs towards the end of the session.

Sensex closed with gains of 27 points at 14209 and the Nifty gained 12 points to end at 4102. Nifty January futures closed at a premium of 2 points to the spot index.

Jet Airways continued to soar as the company's last quarter results have raised hopes of an improved performance in coming quarters. The stock was the best performer with gains of 6.93 per cent.

Maruti saw a sharp fall immediately after the results announcement, before recovering and closing 2.9 per cent higher.

Infosys saw some buying interest and added 2.35 per cent while TCS gained 1.03 per cent.

VSNL extended its gains and closed 2.57 per cent higher.

Among capital goods and engineering stocks, Suzlon gained 2.49 per cent and BHEL gained 2.12 per cent.

Zee Entertainment gained 2.42 per cent on good quarterly numbers.

ITC overcame early weakness and ended 1.91 per cent higher.

PNB was the other major gainer, which closed 1.82 per cent higher.

Satyam Computers remained under pressure even after losing 5 per cent on Friday. The stock lost another 3.43 per cent today.

Dabur, which saw a sharp rally last week, was the biggest loser among index stocks and closed 4.11 per cent lower.

Disappointment over Ranbaxy's results continues and the stock lost another 2.4 per cent.

Siemens saw some profit booking after last week's gains and ended 2.16 per cent lower.

Among telecom stocks, Bharti gave up 1.26 per cent and MTNL closed 1.18 per cent lower.

Gujarat Ambuja Cements corrected and ended 1.41 per cent lower.

HDFC Bank remained weak throughout the session and lost 1.13 per cent.

Among other major losers, Gail India lost 1.82 per cent and.

Reliance Energy gave up 1.57 per cent.

Global markets / crude oil
Asian markets rallied today on strong corporate earnings outlook despite the recovery in crude oil prices.

• Shanghai once again led the region with gains of over 3.5 per cent, taking total gains over 2 sessions to more than 6 per cent
• Hong Kong also rallied on the strong up move in mainland indices and closed nearly 2.2 per cent higher
• Singapore surged 2.35 per cent while Indonesia ended 1.2 per cent higher
• Malaysia added nearly 0.9 per cent
• Japan gained 0.65 per cent
• South Korea ended with gains of 0.2 per cent
• Thailand was the only loser, ending 0.45 per cent higher.

European markets were firm in opening trades and are holding on to those gains. Major indices are trading with gains of between 0.1 and 0.45 per cent each in early afternoon trades.

Crude oil prices remain firm after Friday's recovery. Near month NYMEX futures is trading at around $52.65 per barrel in European trades today.

Large-cap news flow

• Reliance Industries officials have denied media reports about a possible de-merger of its oil & gas assets in the KG basin. The reports had also mentioned the possibility of a stake sale to a strategic partner.
• Tata Motors has commenced work on its new small car plant in West Bengal. The plant is targeted to be completed by 2008, but has been facing stiff opposition from some political parties over land acquisition.
• JSW Steel would hold 89 per cent stake in a JV with the West Bengal government to set up a 10 million tonnes per annum integrated steel plant at an estimated cost of Rs35,000 crore. The company has formed two overseas subsidiaries to purse acquisition of coal assets and expansion of international operations.
• Shareholders of ICICI Bank have approved the merger of Sangli Bank with the bank. ICICI would issue 100 shares for every 925 shares of Sangli.
• Wokhardt has entered into a licensing agreement with a UK-based company to market a dermatology product in India

Mid-Cap Action
Mid-caps and small caps were reasonably firm in morning trades but gave up most of their gains later in the day. The CNX Mid-Cap index ended a point, or 0.02 per cent, lower at 5282. BSE mid-cap index gained 0.14 per cent and the BSE small cap index ended with gains of 0.06 per cent.

Nilkamal Plastics closed at the 20 per cent upper circuit while SKM Egg, Crisil and IFB Industries all closed at 10 per cent upper circuit.

Alchemist, ING Vysya, Navabharat Ventures, Pyramid Saimira, Ceat India and R Systems were the major mid-cap gainers.

IFCI, which nearly doubled over the last couple of weeks, finally corrected and ended 9.06 per cent lower.

Plastiblends, Gujarat Ambuja Exports, Eimco Elecon, Shivalik Global, Kabra Extrusion, Uniphos, Ponni Sugar, Apcotex and Zicom were among the major mid-cap losers.

Mid-cap news flow

• Welspun Gujarat Stahl Rohren has won overseas orders worth Rs1,049 crore for supplying pipes. The company's current order book is at over Rs3,500 crore
• Pratibha Industries has won a new order worth Rs122 crore for construction of the new international terminal and related work at the Ahmedabad airport
• Adlabs has completed the acquisition of a majority stake in television content maker Synergy
• Apparel manufacturer and retailer Provogue has raised Rs146 crore from private equity investors by issuing shares at a price of Rs450 per share.
• Atlanta has announced a stock split in the ratio of 5 shares for every share. The company has plans to raise additional funds
• The board of Mefcom Agro is meeting next week to consider the ratio for issuing bonus shares
• Saksoft would set up a subsidiary in Australia
• Flawless Diamonds would launch a new series of designer jewellery and would set up a chain of retail stores
• Kale Consultants said Yemenia Airways has selected its revenue protection and recovery suite on an outsourced basis
• KS Oils is planning to enter wind power generation and production of bio-diesel
• Subhash Projects is planning to raise from a QIP issue
• LT Overseas has signed an agreement with a government agency in Madhya Pradesh to start organic paddy farming
• Asahi India Glass has started commercial operations at its new unit at Roorkee
  

*Disclaimer: The author may have positions in some of the stocks specifically mentioned above at the time of writing this article. This analysis / report is only for the purpose of information and is not an investment advice. Readers are advised to consult a certified financial advisor before taking any investment decisions. While efforts have been made to ensure the accuracy of the information provided in the content the author or publisher shall not be held responsible for any loss caused to any person whatsoever.