Indices bounce back strongly from yesterday''s fall

It was another volatile day for the markets after yesterday's sell-off as the indices tried to find direction. US markets closed lower yesterday and oil prices recovered. Asian markets were mixed, with Japan rising strongly to 5-year highs.

The indices started on a positive note in early trades but soon turned volatile. They dipped within minutes of opening, but recovered and went back to early highs. Reports that FII's were heavy sellers in the derivatives segment yesterday led to another decline before noon.

The recovery started before noon and by early afternoon, the indices were back at the day's highs. After trading in a sideways mode for more than an hour, the indices surged in late trades as heavy buying was seen in most heavyweights.

Technology stocks were the best performers in today's trade as Infosys led from the front. The stock added over 3 per cent. Satyam, Wipro and TCS all added around 2 per cent each.

Some of the non-ferrous metal stocks rallied as they announced price hikes. Both Nalco and Hindalco announced price increases of Rs6000 per tonne for aluminium. Hindustan Zinc announced a 10 per cent increase in zinc prices.

Cement stocks came back strongly and ACC led the way with gains of close to 5 per cent. Gujarat Ambuja and Grasim also closed with significant gains.

Pharma stocks were no different as Cipla added nearly 4 per cent. Ranbaxy added nearly 3 per cent and Dr. Reddy closed almost 2 per cent higher. Sun Pharma and Glaxo added 4 per cent each.

Capital goods and engineering stocks were back in action after yesterday's decline. L&T added nearly 5 per cent while BHEL gained nearly 2 per cent.

Two-wheeler stocks were subdued as the November sales numbers were not very exciting. Larger auto companies like Tata Motors, M&M and Maruti closed with good gains.

Sensex closed at 8945, a gain of 156 points, and the Nifty at 2699, higher by 47 points. Nifty December futures closed at a premium of 11 points to the spot index.

Zee Tele, Reliance Energy and Nalco were the major gainers among Nifty stocks while Hero Honda and PNB were the losers.

US markets declined after a positive start yesterday on continuing worries about rate hikes by the Fed. Latest data showed improved economic activity till mid-November, even though property prices have cooled off marginally. The final GDP growth rate for the third quarter ended September at 4.3 per cent was higher than expectations.

The Dow lost three-fourths of a per cent while the S&P 500 ended two-thirds of a per cent lower. Technology stocks recovered from two days of heavy losses and helped the NASDAQ index to close marginally higher.

Crude oil recovered yesterday on expectations that continued economic growth across the world would push up demand. GDP growth in the US as well as emerging economies like China and India are showing no signs of a slow down. January crude oil futures on the NYMEX added 82 cents per barrel to close at $57.32 per barrel. In early European trades, crude is trading marginally lower.

Zee Telefilms has won the telecast rights for the three cricket test matches between India and Sri Lanka. Financial details were not available. The stock was one of the best performers in today's trade, adding close to 7 per cent.

Maruti has reported a more than 10 per cent increase in volume sales for the month of November as compared to the same month of previous year. Growth in domestic sales was only 6 per cent but a three-fold increase in exports helped the company during the month. Total sales for the month stood at 47,391 units including 6,278 units of the newly launched Swift.

Larsen & Toubro has received a new order worth Rs263 crore from the Hyderabad International Airport. The new order is for the construction of terminal building. The company had received a nearly Rs500 crore order earlier for the same project.

ONGC would consider an interim dividend following the government directive to PSU's to pay higher dividend. The company clarified that there is no directive for a stock split or a bonus issue. ONGC also mentioned that it has lost an output of 1 million tonnes this financial year due to the accident at Bombay High earlier this year.

Bajaj Auto has reported a marginal increase in November volume sales as compared to the same month of previous year. The slow down was expected after record sales posted in October.

Motorcycles sales were higher by 2 per cent and three-wheeler sales increased by 9 per cent, but scooter sales were lower. The company reported a nearly 50 per cent increase in exports for the month.