Indices sustained the up trend for the second session today as most frontline stocks held on to their gains while select other surged ahead. They opened higher and rallied before shedding part of the gains by early afternoon. Another rally in mid-afternoon trades was also not sustained and the indices gave up part gains in the last hour.
Sensex closed with gains of 61 points at 12706 and the Nifty added 19 points to end at 3698. Nifty March futures closed at a discount of 26 points to the spot index.
Jet Airways saw a major up move and was the best performer among index stocks with gains of 8.36 per cent.
Ranbaxy soared 6.12 per cent on unconfirmed reports that the company has backed out of the bid to acquire Merck's generics business.
Among cement stocks, Grasim rallied 4.02 per cent and Gujarat Ambuja Cements closed 3.36 per cent.
OBC was the best performer among banking stocks with gains of 4.9 per cent.
Lower oil prices helped BPCL to gains 3.91 per cent while Gail India added 3.84 per cent.
Hindalco led the metals pack with gains of 3.57 per cent.
Reliance Energy closed 4.27 per cent higher on reports that the company may get one of the ultra-mega power projects if Lanco-Globeleq consortium is disqualified.
Zee Entertainment was the other major gainer and closed 3.35 per cent higher.
Technology stocks came under pressure today, led by Infosys, which lost 1.5 per cent. Wipro lost 0.84 per cent and TCS shed 0.63 per cent.
MTNL was the worst performer among index stocks with losses of 1.83 per cent.
BHEL corrected 1.57 per cent after yesterday's sharp rally.
Tata Steel remained weak and ended 1.5 per cent lower.
Dabur shed 1.06 per cent and ITC lost 0.81 per cent.
Sun Pharma and Hero Honda were the other major losers.
Global markets / crude oil
US markets gained yesterday on speculation about some very large mergers and buy-outs. Firm trend across other global markets helped trader sentiment while investors provided buying support at lower levels.
The Dow index surged over 0.95 per cent while the S&P 500 closed nearly 1.1 per cent higher. The NASDAQ added more than 0.9 per cent.
Asian markets continued to rally today as well, though some indices gave up part of their gains in the afternoon. Malaysia was the best performer with gains of 1.1 per cent while Japan ended 0.9 per cent higher. Shanghai gained close to 0.6 per cent and Hong Kong ended 0.45 per cent higher. Thailand added nearly 0.4 per cent while Singapore and South Korea ended with marginal gains.
Indonesia closed nearly 0.15 per cent lower.
European markets opened lower and remain subdued. Major European indices are trading with losses of between 0.35 per cent and 0.5 per cent each in afternoon trades.
Crude oil prices gained yesterday after the previous week's decline. Near month NYMEX futures closed at $59.7 per barrel. The commodity has moved past $60 per barrel in European trades today.
Large-cap news flow
Mid-caps and small caps also did well and gains were much better than the large caps. The CNX Mid-cap index gained 59 points, or 1.25 per cent, to end at 4723. The BSE mid-cap index gained 0.85 per cent and the BSE small cap index closed 0.32 per cent higher.
Select mid-cap banking stocks saw good buying interest today. Corporation Bank rallied 12.81 per cent while Bank of Maharashtra ended 8.22 per cent higher. Dena Bank gained 6.98 per cent.
Among tea plantation stocks, Jayshree Tea surged another 11.16 per cent.
MRO-Tek, Indo-Asian Fusegear, RPG Transmission, MSK Projects and Shree Cements were among the other mid-cap gainers.
Astral Poly Technik had a weak listing today. Issued at Rs115 per share, the stock opened at Rs103 on the NSE and finally ended at Rs105.35.
Zenith Exports, JK Industries, Supreme Yarn, Oriental Trimex, Sarla Poly, Magma Leasing, IFGL Refractories and Orient Hotels were the other major losers among mid-caps.
Mid-cap news flow
Jubilant Organosys has received new contract manufacturing orders worth $60 million
Electrotherm India said ICICI Ventures has agreed to invest Rs82 crore in the company's Rs400 crore expansion project
Development Credit Bank has received RBI permission to open eight more branches
A consortium including MSK Projects has won a Rs590 crore road project in Madhya Pradesh
Rama Paper and Pulp has increased product prices by Rs5,000 per tonne
The board of MRO-Tek would meet next week to consider a share buy back
The board of Karnataka Bank would meet next week to consider the private placement of tier-II subordinated bonds
Diamond Cables has acquired a Gujarat-based transformer manufacturer for an undisclosed sum
NIIT Limited has tied up with a foreign company to offer training programmes in storage technology
India Infoline has denied media reports that the company is in talks with Merrill Lynch for cooperation in retail broking.
Sterlite Optical has started commercial production of broadband modems with a capacity of 1.5 million units
Garware Offshore has acquired a newly built anchor-handling tug
IVRCL Infrastructure has received the allotment of 33 acres of land in Noida for development of residential units
Simbhaoli Sugar has tied up with Indian Bank to offer crop finance to farmers in select areas
The board of City Union Bank would meet later this month to consider a preferential allotment of 12 lakh equity shares at Rs169 per share
Fedders Lloyd would launch consumer electronics and home appliances products under its own brand. The company would invest up to Rs60 crore for the retail business
The boards of Rain Calcining and Rain Commodities have approved the merger ratio. Rain Calcining shareholders would receive 2 shares of Rain Commodities for every 7 shares held. The merged entity would expand calcining capacity at an investment of Rs334 crore
Dunlop India would offer equity shares on a rights basis
Shareholders of McLeod Russell have approved the merger of Doom Dooma Tea with the company
The rights issue of Automobile Corp of Goa opened today