Helped by the firm trend across global markets, indices managed to recover part of yesterday's losses. But they were relatively volatile through the session as select stocks came under pressure. In the end, metal and engineering stocks along with ONGC helped them to end with good gains.

Sensex closed with gains of 69 points at 14110 and the Nifty gained 24 points to end at 4090. Nifty January futures, which expire tomorrow, closed at a premium of 9 points to the spot index while February futures ended at a premium of 17 points.

Steel stocks surged ahead after a firm start as some analysts have started forecasting firm metal prices this year. Results announced so far by metal companies have been better than expectations. SAIL led the pack and soared 7.3 per cent while Tata Steel ended 3.49 per cent higher

Among the smaller steel stocks Essar Steel ended 10.56 per cent higher while JSW Steel added 6.53 per cent.

Sesa Goa rallied 10.29 per cent on persistent reports of its current promoters exiting the company. Among other metal stocks, Hindalco rallied 2.52 per cent

ONGC remained firm throughout the session on higher oil prices and ended 2.34 per cent higher.

Among engineering stocks, L&T ended 2.96 per cent higher and BHEL added 2.27 per cent

HDFC Bank rallied 2.47 per cent and HDFC gained 2.41 per cent ahead of its results

Jet Airways resumed its up trend and added 2.83 per cent

Tata Motors was the biggest loser among index stocks as many analysts were sceptical if the company can sustain growth rates in future. An earnings downgrade by a leading investment bank also affected the sentiment and the stock closed 3.62 per cent lower. M&M closed 1.4 per cent lower

HLL came under heavy pressure and ended 3.51 per cent lower

Cipla lost 3.12 per cent as results were below expectations and Sun Pharma gave up 2.48 per cent. Dr. Reddy's continued its decline and ended 1.08 per cent lower

The recovery in crude oil prices led to a 2.06 per cent fall for HPCL while BPCL ended 1.13 per cent lower

Reliance Communications lost 1.35 per cent following TRAI decision to cut roaming charges

Among cement stocks, ACC slipped further and closed 1.06 per cent lower

Global markets / crude oil
US markets gained yesterday as oil stocks led the recovery following the sharp rally in crude oil prices. Buying at lower levels after the recent declines also helped the indices.

The Dow ended with gains of 0.45 per cent while the S&P 500 index gained 0.35 per cent. Technology stocks could not recover much and the NASDAQ ended with very marginal gains.

Asian markets rallied today following the recovery in US indices yesterday. The rally in oil prices did not affect sentiment much. South Korea was the best performer, with gains of close to 1.5 per cent. Malaysia added 1.2 per cent while Shanghai sustained the up trend and added another 0.9 per cent. Japan and Singapore added around 0.55 per cent each while Hong Kong closed 0.25 per cent higher

Indonesia ended with modest losses.

European markets were mixed in opening trades but have gained later. Major indices are trading with gains of between 0.25 and 0.55 per cent each in early afternoon trades.

Crude oil prices surged yesterday after the US announced plans to double its strategic oil reserves. The US government would start buying crude oil from the market later this year. Near month NYMEX futures surged around 4 per cent and settled at $55.04 per barrel yesterday. The commodity has corrected more than a per cent and is trading below $54.5 per barrel in European trades today.

Large-cap news flow

• Tata Steel, through its subsidiary NatSteel, has acquired the remaining stakes held by a Malaysian company in NatSteel Trade International and NatSteel Xiamen for S$26 million, making both the companies fully owned subsidiaries. Tata Steel has also hiked its stake in NatSteel Vina to 56.5 per cent for S$3.1 million.
• Maruti is developing a new export model to be launched in Europe during 2008-09 and is hopeful of achieving total export volumes of 2 lakh units annually by that year. The company has launched the diesel version of its premium hatchback model Swift
• Jet Airways has commenced direct daily flights to Bangkok from New Delhi and Kolkata.
• SBI has raised another $200 million under its medium term note (MTN) programme
• GE Shipping has contracted to sell a 1982 built product tanker for an undisclosed amount
• L&T has won three orders worth a total of Rs355 crore for construction of stations and tunnels for phase-II of Delhi Metro

Mid-Cap Action

Mid-caps and small caps also recovered from yesterday's fall and ended with decent gains. The CNX Mid-Cap index ended 38 points, or 0.74 per cent, higher at 5250. BSE mid-cap index gained 0.24 per cent and the BSE small cap index ended with gains of 0.57 per cent.

Pyramid Saimira continued to run up for the third straight session and ended 15.76 per cent higher. The stocks had closed at the 20 per cent upper circuit yesterday.

Among mid-cap technology stocks, KPIT Cummins rallied another 13.96 per cent after surging over 11 per cent yesterday. Aptech added 11.14 per cent

Sanghvi Movers, which got listed on the NSE today, gained 12.16 per cent. A leading FII has picked up a minority stake in the company

Nitin Spinners, Aarvee Denim, Orient Hotels and Macmillan India were the major mid-cap gainers.

Alchemist Limited, CCL Products, CMC, Nocil, Balaji Tele, Manugraph, India Infoline, Nissan Copper, Vindhya Tele and Jaicorp were among the major mid-cap losers.

Mid-cap news flow

• The board of Nagarjuna Constructions would meet next week to consider raising of funds through QIP/GDR/FCCB routes and also issue of warrants to promoters
• Max India has announced a stock split in the ratio of 5 shares for every Rs10 share
• Supreme Yarns would raise additional funds for expansion in spinning, garmenting and retail
• Western India Shipyard has issued fully convertible debentures worth over Rs27.52 crore to financial institutions as part of a financial restructuring
• Apollo Hospitals is planning to set up a new hospital in Mumbai in association with a US-based private equity company
• Panoramic Universal would acquire a privately held entity for an undisclosed amount
• Cambridge Solutions has declined to comment on media reports about its promoter group planning to exit the company
• Parsvnath Developers has emerged as the preferred bidder for developing an 8 acre plot in Ranchi at a total cost of Rs400 crore
• Indoco Remedies would acquire SPA Pharma in an all stock deal in the ratio of 3 shares of the company for every 4 shares of SPA.
• The board of NRB Bearings would meet next week to consider a stock split
• Steel Strips Wheels has started exports to the Australian subsidiary of General Motors
• Savita Chemicals would issue bonus shares in the ratio of 2 shares for every 3 shares held
• State Bank of Bikaner & Jaipur would raise Rs200 crore by issuing tier-I perpetual bonds
• Accel Frontline would acquire the banking software solutions business of a privately held company for an undisclosed amount. The acquisition is expected to add Rs20 crore to the top line during the next financial year
• Visaka Industries has issued 29 lakh equity shares to institutions at Rs136 per share
• Sulzer India has announced that its parent company has decided not to accept any of the shares tendered through the reverse book building process as the exit price of Rs480 per share is not acceptable.
• Balaji Telefilms would transfer its movie business to a subsidiary.
  

*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.