Mkts end near day's high ahead of trust vote decision

Markets ended on a stronger note on hopes that UPA government is likely to win vote of confidence today. This news will be indicative that early election won't be happening in India and nuclear deal will progress further. Main drivers for today's session were power, FMCG, metal, capital goods, banking and oil stocks. Markets shrugged off negative cues from European markets. This rally has helped broader indices, Sensex bounced back above 14000 mark and Nifty above 4200 level.

Sensex closed with a gain of 254.16 points or 1.84% at 14,104.20 after hitting an intraday high of 14,206.13 and low of 13,798.18. Nifty Fifty surged 80.6 points or 1.94% to settle at 4240.10. It has hit a high/low of 4262.45 and 4137.95, respectively.

CNBC-TV18 estimates on vote of confidence suggest that 272 seats will be in favour of UPA government and 265 seats against of them.

Top contributors in the gain of indices were BHEL, Reliance Comm, ITC, SAIL, SBI, Wipro, ICICI Bank, Tata Steel and ONGC.

Nifty Futures have seen fresh long build up; premium Inched up a bit. Covered call strategy was being adopted in Nifty. Fresh long build up has seen in ADAG stocks. Active Call options were 4300, 4400 and 4500.

FMCG Index outperformed other indices, gained 88.28 points or 4.35% at 2,117.94. This outperformance has been led by United Spirits, ITC, Marico, Tata Tea, Ruchi Soya and HUL.

Power stocks like Reliance Power, GVK Power, Reliance Infra, Tata Power, Power Grid Corp, Neyveli Lignite and Torrent Power also charged up fully. Index rose 103.44 points or 4.29% to close at 2,512.68.

Metal index shot up by 466.21 points or 3.96% at 12,232.45 due to huge buying in Sesa Goa, SAIL, Jindal Steel, NMDC, Tata Steel and Ispat Industries.

Banking stocks like Kotak Mahindra, Axis Bank, Bank of Baroda, SBI, Union Bank, Canara Bank, IOB, Bank of India and ICICI Bank have gained. Index rose 200.27 points or 3.12% at 6,628.98.

Capital Goods Index jumped 343.44 points or 3.10% to close at 11,406.30. Buying was seen in Jyoti Structures, Alstom Projects, Areva T&D, BHEL, Punj Lloyd, Thermax, Walchandnagar, Bharat Electronics and L&T.

IT Index was up by 67.51 points or 1.89% at 3,647.92 as buying was seen in Tech Mahindra, Wipro, Financial Tech, HCL Tech, Mphasis, TCS and Infosys.

Oil & Gas stocks like RNRL, Cairn India, BPCL, HPCL, Petronet LNG, Essar Oil, ONGC, IOC and Reliance Ind have gained. Index closed at 9,382.31, up 0.79% or 73.15 points. Reliance Petroleum shot up 3.5% after the company says that refinery is expected to be completed ahead of December 2008 and for that they utilised Rs 25,515 crore against projected Rs 24,125 crore.

Healthcare Index rose 0.71% to settle at 4,140.83. Pharma stocks like Cipla, Lupin, Sun Pharma, Biocon, Opto Circuits, Divis Labs and Ranbaxy Labs have gained.

Realty Index ended with a gain of 0.55% at 4,810.49 due to buying in Orbit Corporation, Akruti City, Mahindra Life, Unitech, Anant Raj Ind, Indiabulls Real and Phoenix Mills.

BSE Midcap was up by 89.04 points or 1.69% at 5,346.03 and Small Cap rose 98.44 points or 1.53% at 6,536.42. Amongst midcap stocks UB Holdings, Jyoti Structures, Sadbhav Engg, Shaw Wallace, STC India and Great Offshore shot up 10-18%.

In the small cap space, McDowell Holdg, Hind Nat Glass, Kirloskar Pneum, Standard Ind, Mukta Arts and Piramal Glass rose around 10-20%.

However, Auto Index lost 35.10 points or 0.96% at 3,628.06. Maruti Suzuki, Bharat Forge, Tata Motors, Escorts and Bajaj Auto witnessed selling pressure.

Amongst frontliners, SAIL rose 7.40%, Reliance Infra 6.94%, Tata Power 6.80%, BHEL 6.05%, ITC 5.94%, Wipro 5.93% and Cipla 4.99% while Maruti Suzuki lost 9.29%, Dr Reddys Labs -7.47%, Jaiprakash Associates -4.26%, GAIL -2.59%, DLF -2.16%, Bharti Airtel -2.47%, DLF -2% and Tata Motors -1.94%.

UB group stocks were star of the day after United Spirits numbers for Q1FY09, which reported net profit of Rs 117 crore versus Rs 87.6 crore and total income of Rs 1,021 crore versus Rs 770.6 crore YoY. Shaw Wallace rose 14.73% to settle at Rs 259.40, United Spirits up 16.52% at Rs 1,221.35, United Breweries Holdings gained 18.06% at Rs 265.10 and United Breweries up 2.86% at Rs 138.55.

Reliance Infra, Reliance Industries, ICICI Bank and L&T were most active counters on the bourses.

Market breadth was strong; about 1994 shares have advanced while 918 shares declined. Nearly 238 shares remained unchanged.

Turnover traded by markets has improved a bit, which stood at Rs 72,687 crore . This includes Rs 13,076.42 crore from NSE Cash segment, Rs 54,100.84 crore from NSE F&O and the balance Rs 5,509.74 crore from BSE Cash segment.

On the global front, Asian markets ended mixed. Nikkei rose 2.98% and Jakarta Composite up 0.81%. However, Shanghai fell 0.53%, Hang Seng -0.02%, Straits Times -0.98%, Kospi -0.11% and Taiwan Weighted -0.28%.

European markets were trading sharply lower, at the time of writing market report. FTSE 100 was down 1.4%, CAC fell nearly 1% and DAX down 0.64%.

Market Snapshot

• Markets end near days high ahead of Confidence Vote results today
• Sensex ends up 254 pts at 14104.2; Nifty ends up 81 pts at 4240.1  
• CNX Midcap up 2%; BSE Small Cap Index up 1.5%
• BSE Metals Index up 4%; SAIL up 7.4%, Tata Steel up 4.4%, Hindalco up 3.5%
• BSE Bank Index up 3.6%; SBI up 3.8%; HDFC Bank 1.6%; ICICI Bank up 2.9%
• Non-index bank gainers; Kotak Mah Bk up 6.7%, Axis Bank up 5.5%
• BSE Cap Goods Index up 3.5%;BHEL up 6%; Siemens up 3.2%; L&T up 2.4%; Punj Llyod up 5.2%
• BSE IT Sector Index up 2%; Wipro up 5.8%; HCL Tech up 4.3%; TCS up 2.3%
• Results Imapct: Maruti down 9.2%, Dr. Reddy down 7.5%;Tata Elxsi down 7.3%;Cipla up 5%;
• United Spirit family stocks outperform on back of stellar nos from United Breweries
• United Spirits, McDowell Holindgs, United Brerweries, Shaw Wallace
• Index Gainers: ITC up 6%; R Comm up 4.7%; Cipla up 4.7%, Cairn India up 4.6%
• NSE Advance Decline at 8 : 3
• Total F&O turnover at Rs 54,100.8 cr Vs Rs 43,942 cr
• Total Market Turnover at Rs 72,687 cr Vs Rs 58,967 cr 
• Other Gainers
  First Winner
  Vakrangee Softwares
  Great Offshore
  Punjab Chemicals
  Tech Mahindra
• Top losers
  IVRCL Infra
  JP Ass
  Aban Offshore
  HOEC
  Indiabulls Sec 

F&O Snapshot

• Nifty Fut sees fresh long build up; premium Inches up
• Covered call strategy being adopted in nifty; IV’s high for options
• Mix of fresh long & short covering seen in Stock futures
• Fresh long build up seen in AGAG stocks
• Illiquid F&o stocks up on back of cash based buying
• Active Call options: 4300, 4400 & 4500 
• Option Activity:
  Nifty 4300 call adds 9.9 lakh shares
  Nifty 4500 call adds 8.7 lakh shares
  Nifty 4400 call adds 7.9 lakh shares
• Fresh Longs:
  ADAG: R Power, Rcom , Rnrl, Rcap
  Misc : Icici Bank, Bhel , Kotak Bank, LT
• Short Covering:
  Misc: SAIL, Idea, Power Grid, Hcc , Jp hydro , Nevyeli lig; Chambal Fert
  Fresh Shorts: Maruti , Voltas,  JP associates

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