Helped by very strong results from TCS and HCL Tech, the indices opened the day on a firm note and touched new lifetime highs. However, they gave up all their gains and traded within a range for the rest of the day.
The Sensex hit a new lifetime intra-day high of 14211 in early trades while the Nifty set a new lifetime high of 4107. The Nifty managed to end at a new lifetime closing high.
Sensex closed with losses of 15 points at 14115 and the Nifty gained 2 points to end at 4080. Nifty January futures closed at a discount of 3 points to the spot index.
SAIL ended 2.71 per cent lower after yesterday's sharp rise and was the worst performer among index stocks. Hindalco closed 1.48 per cent lower
HDFC closed 2.31 per cent lower and OBC ended with losses of 2.11 per cent
Jet Airways corrected further and closed 2.19 per cent lower
Reliance came under some profit booking and closed 1.32 per cent lower while Gail India lost 1.23 per cent
Among engineering stocks, ABB lost 1.93 per cent
Glaxo lost 1.93 per cent and Tata Power ended 1.24 per cent lower
Select engineering and capital goods stocks continued to surge ahead. Suzlon was the best performer, gaining 3.94 per cent.
BHEL gained 1.77 per cent while L&T added 1.4 per cent
M&M surged 3.72 per cent after the company announced the new commercial vehicles plant under a JV
VSNL continued its rally and added 1.83 per cent on speculation that the Tata group would buy out the remaining stake held by the government. Among other telecom stocks, Bharti gained 1.27 per cent on reports that SingTel may buy Vodafone's stake in the company.
Wipro was the best performer among tech stocks, ending 1.59 per cent higher. HCL Tech added 1.58 per cent following announcement of excellent results while Satyam ended 1.17 per cent higherACC was the other major gainer, ending 1.54 per cent higher
Global markets / crude oil
US markets were closed yesterday.
Asian markets were mixed after 2 days of strong gains. Indonesia was the best performer, closing nearly 1.4 per cent higher.
Shanghai added more than 0.9 per cent after surging 4.75 per cent yesterday. Malaysia ended nearly 0.4 per cent higher while Singapore closed with modest gains
Hong Kong corrected 0.2 per cent while South Korea ended 0.1 per cent lower. Japan and Thailand ended with marginal losses.
European markets opened firm before coming under pressure.
Major indices are trading flat or with modest losses in early afternoon trades
Crude oil prices ended without much change yesterday. Near month NYMEX futures is trading below $52.5 per barrel in European trades today.
Large-cap news flow
- Reliance Industries may set up 50,000 barrels per day oil refinery in Yemen in partnership with a local company, according to unconfirmed media reports. Reliance Industries had recently acquired 2 onshore exploration blocks in Yemen.
- TCS has won a 5-year $140 million outsourcing deal from a large bank in Ecuador. The deal involves implementation of core banking solution and providing IT and BPO services.
- M&M said it's JV with International Truck and Engine Corp would set up a commercial vehicle plant in Maharashtra. The plant would have an annual capacity of 250,000 units and would be operational in 2 years. The plant would produce medium and heavy commercial vehicles besides engines, transmissions and other aggregates. The project may see investments of up to Rs2,500 crore.
- Tata Steel said it has signed the definitive agreement to acquire a Kolkata-based ferro chrome manufacturer for an enterprise value of Rs101 crore. The transaction is expected to be completed by next month.
- JSW Steel has registered its new 100 MW captive power plant using waste gases as a CDM project to be eligible for carbon credits.
- VSNL has denied media reports that the company is in discussions to acquire a telecom company in Sri Lanka
Mid-caps and small caps sustained their rally despite the subdued trend in large caps. The CNX Mid-Cap index ended 20 points, or 0.37 per cent, higher at 5259. BSE mid-cap index gained 0.44 per cent and the BSE small cap index ended with gains of 0.25 per cent.
Lumax Auto Technologies got listed today on the exchanges. Issued at Rs75, the stock opened at Rs80 on the NSE and saw a high of Rs143. The stock finally ended at Rs110.7.
CMC gained another 15.46 per cent after surging 30.56 per cent yesterday
XPro India, Lumax Auto and Prism Cement all ended at the 10 per cent upper circuits
Accel Frontline, Aftek, RNRL, RCF and Kesoram Industries were among the other major mid-cap gainers.
Aztec Software, Tata Sponge, Adhunik Metaliks, Hanung Toys, Paradyne Infotech, Uniphos, Dharani Sugar, Sharyans Resources and Sandesh were among the major mid-cap losers.
Mid-cap news flow
- Bajaj Auto Finance has extended the closing date of its rights issue to 22 January. The company is raising Rs672 from the rights issue of equity shares and non-convertible debentures with detachable warrants
- Nestle India would distribute Rs43.2 crore from its share premium account to the shareholders. The company would pay out another Rs43.09 crore from its general reserve as a special dividend
- i-Flex said a US-based bank has selected its core banking suite
- Pantaloon Retail said one of its subsidiaries has acquired an office products supply firm for an undisclosed amount
- Shareholders of Magma Leasing have approved the merger of Shrachi Infrastructure Finance with the company
- Deep Industries has acquired 2 offshore work-over rigs. The company would deploy one of the rigs with ONGC for a period of 18 months for a consideration of Rs16.7 crore
- Maars Software is proceeding with a GDR issue to raise up to $18 million. The company would also issue 77.2 lakh convertible preference shares to Bank of India
- Vardhman Textiles has appointed consultants for the restructuring of its sewing threads business
- IndusInd Bank would distribute the products of Aviva Life Insurance
- Muktaa Arts has sold the music rights of 5 of its upcoming movies for Rs6 crore
- Flawless Diamond has opened a retail store for designer jewellery in Mumbai
- Sumeet Industries would issue 25 lakh equity shares to promoters at a price of Rs30 per share
- Suryalata Spinning has commenced operations at its new plant in Andhra Pradesh
- Goldiam International said its subsidiary has started commercial production
- The merger between Nahar Exports and Nahar Spinning Mills has received High Court approval
- Rajesh Exports has commenced production at its new jewellery manufacturing unit in Bangalore. The company said its jewellery retail division is now present across 23 cities
- Gujarat Gas Company would supply 3.5 lakh cubic metres per day of natural gas to Kribhco for a period of 3 months
- Indoco Remedies is planning to acquire a Mumbai-based pharma company
- Accel Transmatic would de-merge its training division into a separate subsidiary and is also looking to raise additional funds
- Aarvee Denim would set up a cotton yarn manufacturing unit