Mkts end higher, rally led by FMCG, banks, IT, metal stks

It was a strong rebound for the markets in late trade after choppy session for major part of the day since morning and broken losing streak of last three consecutive days. Recovery led by FMCG, technology, metal, banking, telecom and pharma stocks. The Sensex managed to end above 16500 and the Nifty above 4900. Midcap stocks also bounced back.

The Sensex closed at 16,525.37, up 1.53% or 249.78 points after hitting high of 16,563.30 and low of 16,217.78. The Nifty touched a high/low of 4926.90 and 4835.65, before ending the day at 4918.35, up 1.2% or 58.55 points. Market breadth was mixed, about 1421 shares have advanced, 1497 shares declined, and 191 shares remained unchanged.

Biggest gainers were Ambuja Cements (6.66%), ITC (6.19%), Hindalco (5.96%), TCS (4.46%) and Sun Pharma (5.99%) while losers - BHEL, L&T, ONGC, M&M, Cairn, Suzlon and Dr Reddy's Labs.

The BSE Midcap was up 1.12% at 6,753.53 led by National Fert, Chambal Fert, Nagarjuna Fert, Mphasis, GSFC, Spice Comm, GNFC, Emami, Balaji Telefilm and HT Media, which were up over 7.5%. The BSE Small Cap rose 0.33% at 8,237.09.

ITC was the star performer, gained over 6% as there is news that distributor says ITC hiked cigarette prices by 5-10%. FMCG Index jumped 4.19% to end at 2,443.68. Other gainers were United Spirits, Dabur India, Colgate, Nestle, GSK Cons, HUL, P & G and Godrej Consumer.

Cement stocks were also in focus on partial removal of export ban. Ambuja Cements, ACC and India Cements gained.

Banking stocks like Axis Bank, Kotak Mahindra, PNB, Union Bank, SBI, Yes Bank, Bank of Baroda, Canara Bank and HDFC Bank have gained smartly. Bankex shot up 2.31% or 178.86 points at 7,933.50.

BSE IT was up 2.61% or 116.02 points at 4,566.42 due to buying in Mphasis, TCS, Satyam, Wipro, HCL Tech, Infosys, Patni Computer and Tech Mahindra.

Metal stocks including Hindalco, Tata Steel, Ispat Industries, NALCO, Sesa Goa, JSW Steel and Sterlite Ind have surged. Metal Index closed at 16,649.65, up 378.88 points or 2.33%.

Telecom stocks like Spice Comm, Tata Comm, Bharti Airtel, Tata Teleservices, Idea Cellular and MTNL also surged higher.

Healthcare Index increased by 1.72% at 4,320.08 as rally seen in Sun Pharma, Apollo Hospital, Glenmark, Nicholas Piramal, Sterling Bio, Aventis Pharma, Dishman Pharma, Aurobindo Pharm and Biocon.

Auto stocks like Hero Honda, Maruti Suzuki, Escorts, TVS Motor, Ashok Leyland, Hind Motors and Tata Motors ended higher. Auto Index was up 0.58% at 4,562.03.

Oil & Gas Index gained marginally by 0.65% at 10,777.91. Buying seen in GAIL, BPCL, RNRL, Reliance, Petronet LNG, HPCL and IOC.

However, capital goods stocks remained weak through the day. Index lost 1.66% or 212.23 points at 12,571.91 due to selling in Jyoti Structures, Crompton Greaves, Alstom Projects, BHEL, Suzlon Energy, Bharat Bijlee, Bharat Elec, Areva T&D and L&T.

Most active counters on the bourses were Chambal Fert, Bajaj Finserv, Reliance and ICICI Bank.

Total turnover traded by markets stood at Rs 75109.24 crore including Rs 13367.22 crore from NSE Cash segment, Rs 56333.67 crore from NSE F&O and the balance Rs 5408.35 crore from BSE Cash segment.

On the global front, Asian markets ended mixed; Nikkei, Taiwan plunged over 1% while Shanghai shot up nearly 2.5%. European markets were trading strong at the time of writing market report.

Markets Snapshot

• Market end at day's high; recover in last hour of trade on back of short covering
• Sensex ends up 250 pts at 16525; Nifty ends up 58.5 pts at 4918
• Profit booking seen in midcap and smallcap stocks
• CNX Midcap Index up 0.85%, BSE Small-cap Index up 0.33%
• FMCG Index up 4.2%; ITC up 6.15% on report of cigarrate price hike by 5-10%
• Cement stocks in focus after partial removal of export ban; Ambuja Cement up 6.5%, ACC up 2%, India Cement up 3.5%
• Bank Index up 3%, PNB up 3.75%, SBI up 2.9%, HDFC Bank, ICICI Bank up 1.25% each
• IT Index continous to gain; up 2.6%; TCS up 4.2%, Wipro up 3.4%, Satyam up 2.9%
• BSE Cap Goods Index down 1.5%; BHEL down 2.8%, L&T down 1.3%
  Cairn India down 3.65% as crude cools off in internatinal market
• Suzlon down 2.5%; CLSA & Citi had downgraded stock post result
• Ferliser gainers; NFL up 20%, Chambal Fert up 16.2%, Nag Fert 10.5%, Madras Fert up 9.8%
• NSE Advance Decline at 1:1
• Total market turnover at Rs 75109 cr; FNO turnover at Rs 56334 cr

Buzzers

• Bajaj Finserve up 15.5%;  ((Listing day action: Bajaj Finserve ends at Rs 509 Vs listing price at Rs 545))
• Apar Ind up 12%; looking to hike stake in Uniflex Cables, may result in an open offer
• MphasiS up 10%; Axis Bank up 9.5%, Aptech up 6%, Kotak Mah Bank up 6%
• Sita Shree Food down 7.3%, Crompton Greaves down 6.3%, Jyoti Structures down 6.2%

F&O Snapshot

• Nifty rollover at 51% Vs 45.3% & Market wide rollover at 55% Vs 46% yesterday's trading session
• Short covering seen in last hour of trade
• Nifty May disocunt ends at premium; Nifty June discount ends at premium Vs discount of 15 pts
• Momentum stocks see long rollover in second half of day: IFCI, TTML, RPL, Idea
• Large Caps NTPC , SAIL see rollovers pick up : around 60% for each  with short bias.
• Cement, Banking stongest rolls
• Fertilizer, Sugar see rollovers pick up after unwinding in the beginning of the day
• RIL (43%), Punj Lloyd (44%), RNRL (47%) see low rollover

Options Data

• JP Associates June 230 call add 10.86 lakh shares in OI
• Chambal Fertt May 80 put add 6.4 lakh shares, 90 call add 5 lakh shares in OI
• Nifty June 4600 put add 4 lakh shares in OI; June 4800 put add 3 lakh shares in OI
• NIfty May 5000 call shed 8.6 lakh shares in OI

Strong Roll Over

• IOB   84%
• Ultratech Cem 80%
• India cement  80%
• Hindalco  78%
• Union Bank  77%
• Syndicate bank 74%
• Ambuja Cement 72%
• Century Textile  72%
• PNB   71%
• SBI   70%

Low Rollover

• Hind Zinc  35%
• Indian Bank 38%
• MphasiS 40%
• RIL  43%
• Punj Lloyd 44%
• RNRL  47% 

Asia Today

• Most of the Asian markets end in the red barring China
• Resource led stocks (BHP Billiton and Woodside Petroleum) lose; interest rate sensitive gain
• Thailand down 2.5%, Nikkei, Taiwan down 1.3%, Kospi down 1%
• Shanghai up 2.5% on rumors that authorities might announce the long-delayed launch of stock index futures
• LG Electronics stock down 3.5% on reports that it may bid for GE's appliance unit
• Raffles Education gain 5.5% to 3-mth high after the firm formed JV with Educomp Solutions in India and China

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