Lower inflation nos boost mkts; realty, metal outperform

The markets have closed the session on a strong note as decline in Inflation numbers boosted the markets sentiments and giving the positive signals to the government measures to control inflation. Positive global cues also fueled to the sentiments. Realty, technology, metal, banking and telecom stocks outperformed the markets. All BSE indices ended in green. Market breadth remained positive; nearly 4:1 on the NSE. On the global front, Asian markets closed strong.

The Sensex rose by 237.01 points or 1.46% to settle at 16481.20, and the Nifty up 71.10 points or 1.45% at 4958.40. Market breadth was positive; about 2068 shares have advanced, 764 shares declined, and 243 shares remained unchanged.

Inflation for the week ended April 5 declined to 7.14% as against 7.41% in the earlier week while the market estimated at 7.3%. This was the first weekly decline in Inflation after 8 weeks of rise. Wholesale Price Index, WPI for metals rose by 0.9% and all commodities up by 0.3%.

Top gainers on the bourses were HDFC Bank, Hindalco, HDFC, DLF and SAIL while losers - HUL, ACC, L&T, Reliance Energy, GAIL and Zee Entertainment. Most active counters were Orchid Chemical, Infosys, Reliance Industries and NDTV.

Markets have rallied for fourth consecutive days. Sensex rose nearly 786 points in the last four sessions and 674 points in this week. Overall, it was a spectacular week for the markets. Week started with strong technology news as tech giant, Infosys Technologies reported good earnings, and shown that rupee appreciation and subprime crisis have not impacted its earnings heavily. It is an positive indication for other tech companies.

Other news from IT ministry that STPI concession may be extended for small & medium IT companies, also pushed midcap and small companies shares higher. BSE Midcap and Small cap Indices ended at 6836.39, up  2.05% and 8,531.36, up 2.16%, respectively.

Turnover for the day reported at Rs 64280.63 crore including Rs 15118.92 crore from NSE cash segment, Rs 6700.43 from BSE cash segment and the balance Rs 42461.28 from NSE F&O segment.

Realty Index outperformed all indices, up by 3.99% or 292.77 points at 7,638.73 due to buying in HDIL, Indiabulls Real, Ansal Properties, DLF, Phoenix Mills and Parsvnath.

Metal stocks also contributed to today's rally. The BSE Metal Index gained 3.73% or 526.81 points at 14,661.13 as metal stocks like Ispat Industries, Hind Zinc, SAIL, Hindalco, Shree Precoated and JSW Steel ended in green.

Technology stocks have been buzzing since Monday, BSE IT Index rose nearly 491.52 points or 13.43% in this week. Today it closed at 4,150.90, up 3.6%. I-Flex Solution, Patni Computer, Infosys, Mphasis, HCL Tech and Satyam have supported the index.

Amongst banking stocks HDFC Bank, Oriental Bank, Bank of India, Centurion Bank, Allahabad Bank and Axis Bank have gained. The BSE Bankex was up 3.13% or 252 points to close at 8,295.84.

Power stocks also fully charged today due to buying seen in CESC, Power Grid Corp, Suzlon Energy and Tata Power. The BSE Power Index rose 1.14% at 3,244.22.

Auto stocks like Escorts, TVS Motor, Mah and Mah, Punj Tractors, Tube Investment and Amtek Auto seen some buying interest. The BSE Auto Index surged 0.98% to end at 4,509.81.

Pharma stocks ended with sweet gains. Opto Circuits, Sterling Bio, GSK Pharma, Lupin, Wyeth and Wockhardt have gained. The BSE Healthcare Index was up 0.52% at 4,084.94.

Some capital goods stocks also under bull grip. The BSE Capital Goods Index rose 0.30% to settle at 13,392.48 as buying seen in Kirloskar Bros, Carborundum, Reliance Infra, Lakshmi Machine, Triveni Engg and BEML.

However, FMCG stocks have witnessed some selling pressure in late trade. HUL, Colgate and Britannia have lost ground. The BSE FMCG Index fell 0.21% at 2,367.66.

Oil stocks like GAIL, IOC, Essar Oil, Reliance, ONGC and BPCL have lost the shine. The BSE Oil & Gas Index was down 0.10% at 11,411.03.

Market Today

• Markets gain as inflation witness 1st weekly decline after 8 weeks of rise
• Nifty faces another resistance at 5000 level
• Sensex ends up 237 pts at 16481; down 90 pts from day's high
• Nifty ends up 71 pts at 4958; down 27 pts from day's high
• Tech stocks continues to gain for 3rd consecutive day after Infosys result
• BSE IT Index up 3.6%; Infosys up 3.7%, HCL Tech up 3.5%, Satyam up 3.4%
• BSE Realty Index up 4%; DLF up 4%, Unitech up 2.2%
• BSE Metal Index up 3.7%; Hindalco up 5.7%, SAIL up 5.3%, Tata Steel up 3.8%
• BSE Bank Index up 3.1%; HDFC Bank up 7%, ICICI Bank up 2.5%
• FMCG & Oil & Gas end marginally in the red
• Fertlizer, bankings, tea stocks buzz in mid-cap space
• Fertlizer stocks: Chambal Fert up 23%, Nag Fert up 13%, Oswal Chem up 8.4%
• Private banking; DCB up 18.7%, Vijaya Bank up 8.3%, Indus IndBk up 8%
• Tea stocks: McLeod Russel up 20%, Harrisons Mal up 16%, Jay Shree Tea up 12.8%
• NSE Advance Decline at 4:1
• Total market turnover at Rs 64280 cr Vs Rs 61251 cr yesterday
• Nifty futures turnover at Rs 42461 cr Vs Rs 39647 cr yesterday

Markets this week

• Sensex up 4.25%, Nifty up 3.7%
• CNX Midcap Index up 4.7%, BSE Small Cap up 5.6%
• BSE IT Index up 13.3%; Infosys up 16%, Wipro up 13%, TCS up 10%
• Index Gainers - HCL Tech up 17%, DLF, Ranbaxy, Satyam up over 8%
• Midcap Buzzers - Chambal Fert, Bombay Dyeing up 40%, Nagarjuna Fert, Lanco Infra up 25%, DCB up 23%, Polaris, Aptech, SRF up 19%, Orchid Chem up 14%.

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