Mkts end flat: Metal, cement, aviation stks gain, auto down

It was an extremely volatile session throughout the day. Markets ended flat after showing recovery from day's low. Selective buying and selling has seen across the board. It was witnessing some selling pressure in afternoon trade due to heavy sell off in European markets but again turned volatile as it looked like tussle between bulls and bears. Markets did not give major reaction to huge fall in US markets on Wednesday.

Nalco, SAIL, DLF, Power Grid, Tata Steel, Hindalco, HDFC, L&T and Reliance Infra were top contributors to both indices while Reliance Ind, ITC, Infosys, Bharti Airtel, TCS and ICICI Bank draggers.

The Sensex has recovered 162.3 points and Nifty 51.8 points from day's low of 13,763.94 and 4110.40, respectively. Sensex finished the day with loss of 38.02 points or 0.27% at 13,926.24 while Nifty with a gain of 5.1 points or 0.12% at 4162.20.

Amongst frontliners, NALCO shot up 8.68%, Hindalco 5.49%, Power Grid Corp 4.38%, Tata Comm 4.12%, ACC 3.12%, Tata Steel 3.11% and Ambuja Cements 2.46% while Hero Honda fell 3.73%, Maruti Suzuki -3.4%, ITC -2.56%, Reliance Ind -1.72%, Jaiprakash Associates -1.33% and ABB -2.5%. 

DLF was in positive terrain through the day, up 1.8% as the company has announced buyback of Rs 1,100 crore at maxium price of Rs 600 per share. It will buyback upto 2.2 crore shares, which is 1.1-1.29% of total equity. Promoters' stake will go up from 88.2% to 89.3% if buyback is completed.

Metal Index outperformed other indices, up 2.5% or 316.55 points at 12,959.17 due to buying in NALCO, Ispat Industries, Hind Zinc, Hindalco, Jai Corp, NMDC, SAIL, Tata Steel, Sterlite Ind, Guj NRE Coke, Sesa Goa and Jindal Steel. LME Aluminium has hit all time high of USD 3,350 per tonne after the news that China would cut output.

However, Auto Index lost 1.12% or 40.35 points at 3,565.67 as selling seen in Maruti Suzuki, Hero Honda, Ashok Leyland, Tata Motors and Bosch.

IT Index also ended with a loss of 0.73% at 4,189.40 on back of weakness in Mphasis, Financial Tech, Infosys, TCS, Satyam and Wipro.

FMCG stocks like Marico, ITC, P&G, Ruchi Soya and Nestle have plunged. Index slipped 0.62% at 2,029.76.

Oil & Gas Index fell 0.59% at 9,079.59 due to selling in Reliance Ind, RNRL and Petronet LNG. However, BPCL, HPCL, Cairn India, Essar Oil, ONGC and IOC witnessed buying interest. Crude was trading at USD 136.25 per barrel on the NYMEX, at the time of writing market report.

Realty stocks like Indiabulls Real, Phoenix Mills, Ansal Properties, HDIL, Peninsula Land, Mahindra Life and Akruti City have tumbled. Index slid 0.51% at 4,876.02. Bajaj Auto surged 9.6% after management guided better future growth.

BSE Bankex lost 0.3% at 6,165.25. Power Index fell 0.29% at 2,448.78 and Capital Goods ended down by 0.22% at 11,340.05.

Jet Airways jumped up 2.6%, Spicejet 6.3% and Deccan Aviation up nearly 9% on account of news of mergers and acquisition in aviation space.

Allied Digital Services went up around 7% as company has bought 80.5% stake in US-based EnPointe Global for USD 30 million.

Market breadth was positive; about 1575 shares have advanced while 1329 shares declined. Nearly 241 shares remained unchanged.

Most active counters on the bourses were Reliance Ind, Reliance Infra, DLF, ICICI Bank and Reliance Capital.

Turnover traded by markets stood at Rs 51,884.57 crore. This includes Rs 11,412.88 crore from NSE Cash segment, Rs 35,645.89 crore from NSE F&O and Rs 4,825.8 crore from BSE Cash segment.

On the global front, Asian markets ended mixed. Shanghai Composite was down 1.54%, Jakarta Composite -0.43% and Straits Times -0.55% while Kospi gained 1.19%, Taiwan Weighted 0.39%, Nikkei 0.12% and Hang Seng 0.07%.

European markets were trading sharply lower on the back of heavy sell off in US markets as worries over financial space are not over yet. At the time of writing market report, FTSE 100 plunged 1.4%, CAC -1.7% and DAX -0.9%.

Market Snapshot

• Markets recovers from days low to end flat amid volatile day of trade
• Sensex ends down 38 pts at 13926; recovers nearly 150 pts from days low
• Nifty ends flat at 4162; recovers 50 pts from the low
• CNX Midcap Index ends flat; BSE Small Cap up 0.3%
• BSE Metals Index up 2.5%; Aluminium prices hits life-time-high at LME
• Nalco up 8.7%; Hindalco up 5.2%; SAIL up 3.1%; Tata Steel up 3.1%
• Bajaj Auto up 10.3% after management guided better future growth
• Other Auto stocks: Hero Honda down 3.7%; Maruti Suzuki down 3.4%; Tata Motors down 1.9%
• DLF up 2% at Rs 460; Board announces buyback upto Rs 600/sh
• Oil and Gas Movements : RIL down 1.6%, BPCL up 2.7%; HPCL up 1.7%
• Index Gainers; Power Grid up 4.4.%; Tata Comm up 4.1%; Ambuja Cement up 3.4%; Zee Entertainment up 3.3%
• Index Losers; ITC down 3.6%; ABB down 2.5%; Tata Power down 1.7%
• NSE Advance Decline at  1 : 1
• Total F&O turnover at Rs 35645 cr Vs Rs 47908 cr
• Total Market Turnover at Rs 51884 cr Vs Rs 64923cr on Wednesday
• Buzzers
  Stocks up 20% : Kaushlya Infra, BSEL, Sita Shree Foods, Asian Electronics
  Indus Ind Bank up 9.5%
  Deccan Aviation up 8.4%
  Hexaware up 8%
  GMDC up 7.4%

F&O Snapshot

• Nifty fut sees short covering in latter half of the session
• Discount narrows down to 15 points from around 30 points in the morning trade
• Put writing seen in Nifty 4000 & 4100 put options
• NSE F&O turnover lower at Rs 35645.89 cr vs Rs 47907.81 c in yesterday’s trade
• Aluminium stocks like Hind Zinc, Nalco & Hindalco sees fresh long build ups
• Illiquid F&O stocks like Omaxe & Dabur up because of Cash buying
• Options Activity:
  Nifty 4000 put adds 3.2 lakh shares
  Nifty 4100 put adds 3.2 lakh shares
  Nifty 4100 call sheds 1.7 lakh shares
• Short Build up :
  Lanco Infra dn 6.6%; adds 3.3 lakh shares
  Lanco Infra dn 3.2%; adds 19.9 lakh shares
• Long Build up :
  Indus Ind Bank up 8.2%; adds 2.7 lakh shares
  Hindalco up 4.6%; adds 11.6 lakh shares
  Tata Steel up 2.9%; adds 3.9 lakh shares
  IFCI up 3.4%; adds 25.3 lakh shares

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