Mkts end higher amid volatility; IT, FMCG, oil stks up

The markets have shown smart recovery in the last half an hour of trade amid huge volatility since morning. Technology, FMCG, oil, power and pharma stocks have supported the markets. However, realty, auto, midcap and small cap stocks remained in the negative terrain. Market breadth remained weak as well though some recovery happened. On the global front, Asian markets ended mixed. European markets were trading strong at the time of writing market report.

In the first half session, market recovered its morning losses but due to weak IIP nos, it got hammered, touched a day's low. March Industrial Growth declined at 3% from 8.6% in February while market expected at 5.7%. FY08 Industrial Growth also fell at 8.1% versus 11.6% (YoY). March Manufacturing growth was down at 2.9% from 16% (YoY).

But the Indian Rupee has helped the market to recover in late trade as technology stocks witnessed buying interest. The Rupee touched a low of 42.04 during the day and was trading at 41:98 per dollar at the time of writing market report.

The Sensex has recovered nearly 320 points from the day's low to close at 16,860.90, up 0.74% or 123.83 points. The Nifty recoverd nearly 100 points to finished the day at 5012.65, up 0.60% or 30.05 points.

Market breadth was negative, about 1023 shares have advanced, 1897 shares declined, and 167 shares remained unchanged.

Top gainers on the bourses were Ranbaxy Labs, Satyam, ITC, HDFC, Cairn India and Suzlon Energy while losers - Grasim, JP Associates, M&M, BPCL, Unitech, ACC and Sun Pharma.

Midcap and Small cap indices fell 0.67% and 1.2% to settle at 6,945.91 and 8,403.56. Midcap stocks like Bharat Bijlee, United Breweries, IVR Prime, Core Projects, Motilal Oswal and Voltamp Trans were down over 5%.

Technology stocks became the star performers of the day, BSE IT Index was up 1.48% to settle at 4,297.84 as buying interest seen in Mphasis, Satyam, Tech Mahindra, Wipro, Infosys, TCS and HCL Tech.

FMCG stocks ended with sweet gains, BSE FMCG rose 1.11% at 2,486.04. ITC, Tata Tea, Nestle, GlaxoSmith Con, Colgate, Dabur India and Britannia have given support.
 
Oil and gas stocks gained smartly after witnessed selling pressure in the morning trade. The BSE Oil & Gas Index was up 1.02% at 11,193.69 as Cairn India, Essar Oil, GAIL, Reliance and RNRL gained.

Power stocks also charged up like Suzlon Energy, Reliance Infra, BHEL, GVK Power, CESC and Reliance Power. The BSE Power Index settled at 3,219.05, up 0.62%.

Banking stocks like Axis Bank, PNB, Union Bank, HDFC Bank and ICICI Bank gained as well. The BSE Bankex surged 0.63% to close at 8,565.13.

The BSE Healthcare Index ended at 4,177.31, up 0.59% as buying seen in Ranbaxy Labs, Matrix Labs, Wockhardt, Cipla and Dr Reddys Labs.

Metal stocks like JSW Steel, NALCO, SAIL, Hindalco and Jindal Steel also gained the shine. The BSE Metal Index rose marginally by 0.23 points at 15,647.31.

However, realty stocks have collapsed due to selling in Puravankara, Indiabulls Real, Sobha Developer, Unitech, Parsvnath, DLF. The BSE Realty Index fell 1.95% at 7,736.91.

Auto stocks like Bharat Forge, Punj Tractors, Hind Motors, MRF, Hero Honda, Apollo Tyres and M&M slid. The BSE Auto Index lost 0.75% at 4,688.31.

Aishwarya Telecom, Reliance Petro, Cairn India and Reliance Industries were most active counters on the bourses.

Market witnessed total turnover of Rs 60102.71 crore including Rs 13117.24 from NSE cash segment, Rs 41000.80 crore from NSE F&O segment and the balance, Rs 5984.67 crore from BSE cash side.

Markets Snapshot

• Markets witness smart recovery in later part of the day amind huge volatility
• Mar Industrial growth at 3% Vs 8.6% in Feb; CNBC-TV18 poll at 5.7%
• Sensex ends up 124 pts at 16861; recovers nearly 315 pts from day's low
• Nifty ends up 30 pts at 5013; recovers nearly 100 pts from day's low
• CNX Midcap Index down 0.66%, BSE Small-cap Index down 1.2%
• Cairn India up 10%; best play in oil & gas space on crude rise
• Ranbaxy up 5.3%; may get $100 m as milestone payment from Merck
• Index losers; BPCL down 4.7%, Unitech down 2.6%, DLF down 1.4%
• Fertiliser stocks: Nag Fert up 8.6%, Chambal Fert up 7.5%, NFL up 4.8%
• Buzzers: Aishwarya Telecom gains nearly 25% from days low; Assam Co up 10%, BASF up 12.3%
• Wall Street Fin up 1%; 33% equity changes hand on BSE via inter-se transfer beyween promoters
• Losers; Guj NRE Coke, IDFC, UCO Bank down 4% each
• NSE Advance Decline at 1:3
• Total market turnover at Rs  60102 cr Vs Rs 55403 cr on Friday
• Total NSE F&O turnover at Rs 41000 cr Vs Rs 34951 on Friday

F&O Snapshot

• F&O turnover picks in last hour of trade
• Nifty futures end at 15 pts premium; add 16.7 lakh shares in OI'
• Nifty futures witness short covering as OI cut seen from day;s high of 28 lakh shares to 16.7 lakh shares
• SAIL, Arvins Mills witness recovery from day's low
• IDFC, Unitech, DCB, PFC witness addition of short positins
• Short covering seen in GMR Infra, Ranbaxy, Satyam

Asia Today

• Asian markets recover from day's low
• Markets in South Korea & Hong Kong are closed for a holiday
• Dollar trading at 2-mth high Vs major currencies; Crude hit yet another all time high
• Nikkei up as yen depreciates against dollar and that helped exporters gain

Chinese Market

• Shanghai ends up 2.5% from day's low
• China's inflation rose to 8.5% in April from 8.3% in March; 12-year high was 8.7%
• Food prices up 22.1% due to rising global grain prices
• China's central bank increase bank reserve ratio by 0.5% to 16.5% for the 4th time this year

Continued on Page 2..........