Sensex ends 84 pts up amid volatility; Nifty holds 5700
09 October 2012
It was largely a volatile session for the market on Tuesday. The BSE Sensex bounced back with gains of as much as 177 points following correction of 349 points in previous two sessions. But the bouts of profit booking due to Eurozone concerns and worries over fiscal deficit sent the index, in the second half of trade, closer to previous day's closing value.
In fact, the 50-share NSE Nifty touched an intraday low of 5,677.90, before closing with gains of 28.60 points at 5,704.60.
Meanwhile, the 30-share BSE benchmark rose 84.38 points to end at 18,793.36, supported by banks, FMCG, steel, pharma and technology stocks.
Britain's FTSE and Germany's DAX edged lower after a stark warning from the IMF about the global growth outlook and the prospects for Spain and Greece. Both indices were marginally lower at the time of closing of Indian equities.
IMF cut global growth forecast to 3.3 percent from 3.5 percent while India's forecast was cut to 4.9 percent from 6.1 percent earlier.
The uncertainty about Greece agreeing to what the Troika wants and Spain's deliberation over opting for a bailout continues. Whether Spain would eventually ask for a bailout or not has kept European markets in a bit of uncertainty, feels Nick Parsons, Head of Research-UK & Europe, Global Head Fx Strategy at National Australia Bank.
The 30-share BSE Sensex continued to trade higher with marginal gains led by strength in banking, FMCG, technology and steel stocks. Index heavyweights Reliance Industries and SBI were playing key role in today's volatility, both were flat in trade.
The BSE benchmark went up 79 points to 18,787.91 and the NSE benchmark rose 26 points to 5,702.10.
Telecom operator Bharti Airtel, state-run power equipment maker BHEL and aluminium major Hindalco Industries were down 1.5 percent each.
Commercial vehicle major Tata Motors trimmed losses to 0.7 percent from 1.5 percent. Gas transportation services provider GAIL plunged 2.5 percent.
Software services exporter Infosys rose 1.5 percent while its rivals TCS and Wipro were marginally in green.
Country's largest private sector lenders ICICI Bank and HDFC Bank were up 0.8-1 percent. Engineering conglomerate Larsen & Toubro rallied nearly 2 percent.
FMCG majors ITC and HUL moved up 0.9 percent each. Tata Steel, world's sixth largest steel producer gained 0.9 percent too.
In the second line shares, KSK Energy Ventures, Anant Raj Industries, Rajesh Exports, DB Realty and Bajaj Electricals rallied 5-11 percent while Tulip Telecom, Dewan Housing, MTNL, TVS Motor and Apollo Hospital slipped 2-5 percent.
Indian shares trimmed gains following weakness in European markets. France's CAC, Germany's DAX and Britain's FTSE lost 0.3-0.7 percent after initial gains.
The 30-share BSE Sensex gained 56.54 points to 18,765.52 and the 50-share NSE Nifty rose 15.20 points to 5,691.20.
The Indian rupee, which gained 32 paise, too erased its gains; it was up just 3 paise at 52.61 against the US dollar.
Commercial vehicle maker Tata Motors reversed its gains, losing over 1 percent. State-run power equipment maker BHEL extended losses to 1.8 percent while engineering conglomerate Larsen & Toubro rose over 2 percent.
Aluminium major Hindalco Industries and telecom operator Bharti Airtel fell 1.5 percent each.
Private oil & gas producer Reliance Industries and public sector lender State Bank of India shed all its gains, falling marginally.
Private sector lenders ICICI Bank and HDFC Bank were up 0.7-1 percent. FMCG majors ITC and Hindustan Unilever rose over 0.7 percent.
Infosys, country's second largest software services exporter went up 0.6 percent whereas its rival Wipro was down 0.7 percent.
Healthcare stocks remained strong; Sun Pharma, Ranbaxy Labs, Cipla and Dr Reddy's Labs surged 1.4-1.7 percent.
The broader markets too trimmed gains to 0.3 percent from 0.9 percent. About 1412 shares advanced while 1292 shares declined on the BSE.
The BSE Sensex managed to hold the 100 points gains amid volatility since early trade while the Nifty stayed above the 5700 level despite somewhat profit booking. Private banking, FMCG, pharma, cement, metals and auto stocks remained on buyers' radar. Index heavyweights Reliance Industries and State Bank of India came off day's high.
The 30-share BSE benchmark rose 130 points to 18,838.82 and the 50-share NSE benchmark went up 38.35 points to 5,714.35. The broader markets too were in line with benchmarks as the BSE Midcap and Smallcap indices gained 0.8 percent each.
Engineering and construction major Larsen & Toubro topped the buying list with 2.4 percent gains.
Private sector lenders ICICI Bank and HDFC moved up over 1 percent while their rival State Bank of India trimmed gains to 0.5 percent from 1 percent.
Private power producer Tata Power and cement maker UltraTech Cement rallied over 2 percent.
Healthcare stocks continued uptrend - Dr Reddy's Labs, Sun Pharma and Cipla were up 1.6-2 percent.
Cigarette major ITC, housing finance company HDFC and software services exporter Infosys rose over 0.6 percent.
Telecom operator Bharti Airtel and state-run power producer NTPC fell over 1 percent. Power equipment maker BHEL and two-wheeler manufacturer Bajaj Auto declined 0.9 percent each.
Indian shares rose nearly 1 percent due to short covering and further upmove in Asian markets. Shanghai extended gains to 1.8 percent and Hang Seng was up 1.15 percent while Nikkei was down 0.4 percent. The Indian rupee too gained following uptrend in equities, rising by 32 paise to 52.32 against the US dollar.
The 30-share BSE Sensex rallied 168.48 points to 18,877.46 and the 50-share NSE Nifty jumped 50.15 points to 5,726.15.
Engineering and construction major Larsen & Toubro surged over 2 percent while state-run power equipment maker BHEL fell 0.6 percent.
Country's largest private sector lender ICICI Bank went up 1.8 percent while its rival HDFC Bank was up 1.3 percent. Public sector lender State Bank of India gained 1 percent.
Index heavyweight Reliance Industries recouped its early losses, advancing 0.65 percent. FMCG majors ITC and Hindustan Unilever moved up nearly 1 percent.
Software services exporter Infosys and housing finance company HDFC gained over 0.6 percent. Commercial vehicle maker Tata Motors rose 1 percent.
Drug producers Sun Pharma, Dr Reddy's Labs and Cipla spiked 1.7-2 percent. Steel producers Tata Steel, Sterlite Industries and Jindal Steel climbed 1.7-2 percent.
The BSE Midcap and Smallcap indices were up 0.9 percent each as advancing shares outnumbered declining by a ratio of 1554 to 905 on the BSE.
In the second line shares, Edelweiss Financial, Sun Pharma Advanced, Motilal Oswal, Bajaj Electricals and Britannia rallied 4-6 percent while Tulip Telecom, Tuni Textile, Apollo Hospital, Blue Dart and TVS Motor slipped 2-5 percent.
The 50-share NSE Nifty erased somewhat gains from day's high but still managed to hold the 5700 level, supported by banking & financials, FMCG, metals, pharma and cement stocks. The index rose 26.70 points to 5,702.70.
Meanwhile, the 30-share BSE Sensex gained 90.48 points at 18,799.46 after losing 350 points in previous two sessions. Even the Indian rupee recouped somewhat yesterday's losses by rising 24 paise to 52.40.
According to Siddharth Bhamre of Angel Broking, the recent correction is because of long unwinding and not formation of short positions. That clearly states that it is a correction in a rising trend, which is to be bought," he adds. He feels the 5,680 is a good support for the Nifty.
Top telecom operator Bharti Airtel fell 1.5 percent on profit booking. State-run power equipment manufacturer BHEL and software services exporter Wipro lost another 1 percent.
Index heavyweight Reliance Industries erased gains, losing 0.26 percent while software services exporter TCS declined 0.4 percent.
Two-wheeler makers Bajaj Auto and TVS Motors slipped 1-2 percent after the government has slashed export duty drawback to 2 percent from 5.5 percent.
Real estate firm DLF shed another 2 percent following a loss of over 7 percent yesterday on Robert Vadra deal issue.
Healthcare stocks like Sun Pharma, Lupin, Cipla, Dr Reddy's Labs and Ranbaxy Labs gained 1.4-1.8 percent. Cement makers UltraTech Cement, Ambuja Cements and ACC were up 0.5-1 percent.
Country's largest private sector lenders ICICI Bank and HDFC Bank moved up around 1 percent while their rival State Bank of India was up 0.6 percent.
FMCG majors ITC and HUL climbed 0.5-1 percent while engineering conglomerate Larsen & Toubro rose 1.5 percent.
The market breadth remained strong; about three shares advanced for every share declined on the National Stock Exchange.
The BSE Sensex rebounded in early trade on Tuesday following profit taking in previous two sessions and positive Asian markets. The index, which lost 350 points since Friday, rose 161.17 points to 18,870.15.
Meanwhile, the 50-share NSE Nifty rallied 47.55 points to 5,723.55. Experts feel the trend is still up ahead of more reforms and on consistent inflow of foreign money, though there are bouts of profit booking.
Among Asian markets. Shanghai jumped 2 percent and Hang Seng gained 1 percent while Nikkei fell 0.5 percent.
The Indian rupee, which tanked 1.5 percent yesterday, too recouped losses, rising by 38 paise to 52.26 against the US dollar.
Tata Motors, ICICI Bank, Axis Bank, SBI, Ambuja Cements, L&T, BHEL, Hindalco Industries, JSPL, JP Associates, Infosys, IDFC and Lupin gained in early trade.
Some auto stocks were under pressure the Ministry of Finance has reduced duty drawback rates on exports. Duty drawback rates on motorcycles, 3-wheelers and MHCVs have been reduced to 2% from 5.5% previously.
Bajaj Auto fell 2 percent while TVS Motor declined 1.2 percent. Ashok Leyland was down 0.6 percent.
DLF lost another 1.8 percent after shedding 7 percent yesterday due to corporate governance issue.
Bharti was down 0.5 percent and Idea Cellular went down 1 percent on profit booking. Yesterday these stocks rallied after empowered group of ministers said one-time spectrum fee would be on prospective basis.
The CNX Midcap Index rose 61 points to 7,946 as about three shares advanced for every share declining on the National Stock Exchange.
In the second line shares, Aban Offshore was up 3 percent as the company has received 3-year contract from Petronas. Company will earn approximately USD 152.75 million (Rs 800 crore) from this contract.
JSW Steel gained over 1 percent after the NMDC decided to slash iron ore prices between 2-11%.
United Spirits and UB Holdings moved up 2-3 percent while Kingfisher plunged another 5 percent due to lockdown.
Heidelberg Cement was up 2 percent. Gati rose 7.5 percent while Tulip Telecom plunged 5 percent.
Gayatri Projects gained nearly 4 percent on redemption of outstanding FCCBs.