Mkts end higher amidst extreme volatility; RIL up 5%

Markets ended with good gains amidst extreme volatility through the day on F&O expiry day for the month of June 2008. Buying interest has seen in late trade; the Nifty got back above 4300 mark. Biggest contributors were RIL, Infosys, HDFC, L&T, Wipro and ITC. IT, Oil & Gas, metal stocks gained while realty lost. June series in F&O were very bad for the markets. Markets did not react to weak European cues.

Reliance Industries was again top star amongst frontliners; stock went up nearly 4.87% at Rs 2,239.25 after the news that oil and natural gas production from RIL's KG D6 basin is expected to commence in Q3CY08, says Niko Resources, which holds 10% stake in RIL's KG D6 basin. Resources also says Gas operations from D6 are expected to increase to 2.8 Bcf/d and R1 exploration well in D6 added 2.2 Tcf to best case contingent reserve. D6 2P natural gas reserves went up by 15% to 13.0 Tcf.

The Sensex swung nearly 250 points and the Nifty 95 points in today's session. The Sensex closed at 14,421.82, up 201.75 points or 1.42% after hitting an intraday high of 14,449.81 and low of 14,196.68. The Nifty scaled back to 4300 mark and finished at 4315.85, up 1.49% or 63.2 points. It has touched a high and low of 4324.75 and 4230.00, respectively.

Nifty went down 11% for the June Series. Aggressive short rollover has seen in Nifty July series and discounts widened to 66 points. Fertilizers stock seen fresh long build-ups after new policy announcement. Market Wide rollover stood at 74.4 and Nifty rollover at 67%.

Reliance Ind, Wipro, Infosys, ITC, HDFC and L&T were biggest contributors to the gain of indices while Reliance Comm, Bharti Airtel, DLF, HUL, HDFC Bank and Ranbaxy Labs draggers.

Fertiliser stocks also shot up higher after the government announced new fertiliser policy. Fertiliser Minister said that the government has finalised new Potash, Phosphate Price Policy. New Fertiliser Policy will be for long term now versus yearly. Chambal Fert, Coromandel Fert, Deepak Fert, GNFC, GSFC, Nagarjuna Fert and National Fert surged around 5-12%.

India's largest bank, SBI has hiked Benchmark PLR by 50 bps to 12.75%, which will be effective from June 27. The stock went up 1.09% at Rs 1,216.25.

Amongst frontliners, Tata Comm went up by 9.29%, Ambuja Cements 6.91%, Wipro 6.32%, Power Grid Corp 5.67%, Reliance Ind 4.87% and Cipla 4.36% while Reliance Comm lost -2.61%, Maruti Suzuki -2.44%, Hindalco -2.12% and Ranbaxy Labs -2.03%.

Oil & Gas Index underperformed other indices, shot up 2.82% or 265.82 points to settle at 9,677.38 on the back of buying in Reliance Ind, Petronet LNG, GAIL, Cairn India and ONGC. However, Essar Oil, RNRL, IOC, HPCL and BPCL lost ground.

Technology stocks have remained on buyers' radar in today's session, which includes Wipro, HCL Tech, Satyam, Financial Tech and Infosys. Index was up by 2.12% or 86.91 points at 4,181.86.

Metal Index rose by 158.27 points or 1.15% at 13,923.41 due to buying JSW Steel, SAIL, Sterlite Ind, NALCO, Tata Steel and Sesa Goa.

Capital goods stocks like Rel Ind Infra, L&T, ABB, Siemens, Greaves Cotton and Crompton Greaves have gained. Index went up 0.79% at 10,887.23.

Auto Index shot up 0.88% at 3,894.75, led by buying in Bharat Forge, Tata Motors, M&M, Ashok Leyland, MRF, Hind Motors and Hero Honda.

FMCG stocks like ITC, United Breweries, Tata Tea and P&G were up. Index gained 0.58% to close at 2,142.62.

Healthcare Index was up 0.46% at 4,209.15 as buying seen in Dishman Pharma, Cipla, Sterling Bio, Sun Pharma, Sun Pharma Adv and Pfizer.

Power stocks like Neyveli Lignite, Power Grid Corp, Tata Power, Reliance Infra and Torrent Power charged up. Index rose 0.43% at 2,454.81.

However, Realty index plunged 2.02% or 105.42 points at 5,102.43 as selling pressure seen in Phoenix Mills, Ansal Properties, Mahindra Life, HDIL, Omaxe, Parsvnath, Peninsula Land, Sobha Developer, Indiabulls Real and DLF.

Bankex end flat with negative bias, down 0.07% at 6,471.59. Selling pressure seen in IOB, Axis Bank, HDFC Bank, Kotak Mahindra and Union Bank. However, Federal Bank, Bank of India, Allahabad Bank, Canara Bank, Oriental Bank and SBI have gained.

Small Cap Index shot up 1.01% at 7,129.08. Amongst small cap stocks, Rayban Sun, Mahindra Forg, Nilkamal, Zenith Infotech, Deepak Fert, Pennar Inds, Hind Nat Glass, MarathonNextgen, Radico Khaitan, Cheviot Company, Allied Digital, Sharyans Res, Prajay Engineer and MSP Steel were up over 7%.

Market breadth was positive; about 1563 shares have advanced while 1292 shares declined. Nearly 273 shares remained unchanged.

Most active counters on the bourses were Reliance Ind, Reliance Comm, Tata Steel, L&T, Reliance Petro, HDFC and Infosys Tech.

Turnover traded by the markets stood at Rs 1,00,071.8 crore. This includes Rs 15,779.81 crore from NSE Cash segment, Rs 79,103.71 crore from NSE F&O segment and the balance Rs 5,188.28 crore from BSE Cash segment.

On the global front, Asian markets ended flat with negative bias. Hang Seng was down -0.8%, Shanghai -0.11%, Nikkei -0.05%, Straits Times -0.25%, Kospi -0.01% and Taiwan Weighted -0.55%. However Jakarta Composite went up 0.41%. European markets were trading sharply lower on the back of selling in banking stocks, at the time of writing market report. FTSE 100, CAC 40 and DAX went down around 1% each.

Markets Snapshot

• Markets end near days high on tripple witching day
• Strenghth seen in Nifty, Sensex; Midcap Index end in the red
• Market held on back of Reliance Ind
• Sensex ends up 201.7 pts at 14422; Nifty ends up 63.2 pts at 4316
• CNX Midcap Index ends down 0.62%; BSE Smallcap Index up 1%
• BSE Oil & Gas Index up 2.8%; RIL up 4.85%, RPL up 2.2%
• BSE IT Index up 2%; Wipro up 6.3%, Satyam up 3%, Infy up 2.2%
• Index Gainers; Tata Comm up 9.3%, Ambuja Cem up 7%, Power Grid up 5.7%, Cipla up 4.2%, HDFC up 3.2%'
• Index Losers; Hindalco, R Comm, Maruti down nearly 2.5%, Ranbaxy down 2.1%
• NSE Advance Decline at 7:5
• Total market turnover at Rs 1 lakh cr Vs Rs 98568 cr on Friday
• F&O turnover at Rs 79103 cr Vs Rs 81000 cr on Tuesday

Small-cap Buzzers

• Ray Ban - Ray Ban India may delist, receives proposal from minority shareholders. At present, Ray Ban Indian Holdings Inc.holds 70.54% of the fully paid-up capital of the Company
• Atlas Copco
  Stock down 10%
  Defers buy back decision
• Kaveri Telecom
  Stock down 20%
  Q4 Net profit at Rs 3.1 cr Vs Rs 6.1 (QoQ)
  Q4 Net Sales at Rs 38.6 cr Vs Rs 43 cr
• LG Bros
  Renold to acquire Industrial Chain Biz of LG Balakrishnan For 5.7 m Pounds
• Rane Engines: recent re-listing
  Re-listing price at Rs 275 on June 24
• Madras Fert
  Submits Financial Restructuring package to govt
• Spice
  Market believes that Spice group will pump more money in Spice Mobile

F&O Snapshot

• NIfty July futures end at 65.85 pts discount; add 1 cr shares in OI
  Nifty Rollover at 72% Vs 66% in May series
• Marketwide rollover at 80% Vs 82% in May series
• Aggressive short rollover seen in Nifty futures; cost of rollover expanded in the last half an hour
• Low rollover seen in stock futures as some investors not ready to pay rollover cost to next series
• Fertilizers stock sees fresh long build-ups after new policy announcement
• Momentum Stocks
  Ispat down 2.3%; add 1.5 cr shares in July series
  IFCI down 4.3%; add 1.38 cr shares in July series
  TTML down 3%; add 1.2 cr shares in July series
  RNRL down 3.4%; add 88 lakh shares in July series
• Options :
  Nifty July 4300 call adds 25.5 lakh shares
  Nifty July 4400 call adds 22.5 lakh shares
  Nifty July 4000 put adds 25.3 lakh shares
  Nifty July 4100 put adds 24.5 lakh shares
• Rollover Analysis
  -Cement, Metal & Banking stocks continue to witness strong rollovers -Auto and Oil & Gas have seen a good spurt in rollover
  -Rollovers in Chemical and Pharma remain weak
  -Lowest rollover seen in IVR Prime (55%), Crompton Greaves (55%), Matrix (57%), Divi's (59%), United Phosphorus (60%)
  -Highest rollover seen in Ultratcech (95%), Syndicate Bank (90%), OBC (89%), Sobha (84%), Hindalco, Tata Comm (82%), L&T, SAIL (80%)

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