Mkts end in green: Oil, metal stks up; banks, pharma down

The markets closed the day with modest gain amid mild volatility, after showing strong recovery from day's low in second half of session, which is in line with Asian markets. Oil & gas, metal, capital goods and auto stocks were the movers while banking and pharma stocks draggers. Market breadth remained positive for major part of the day. The Sensex recovered nearly 200 points and the Nifty 70 points from day's low. The Sensex remained above 17000 and Nifty above 5000 mark.

Markets was opened on a weak note and traded in red for first half of session due to weakness in Asian and US markets. But strong buying in oil & gas and metal stocks and good European cues have helped the markets in latter part of the day to show recovery. 

The Sensex has touched an intraday high of 17,293.34 and low of 17,041.63 before ending the day at 17,243.16, up 12.98 points or 0.08%. The Nifty has hit a high/low of 5135.55 and 5048.70, which closed at 5117.65, up 12.7 points or 0.25%.

Market breadth was positive; about 1806 shares have advanced, 1111 shares declined, and 185 shares remained unchanged.

Top gainers on the bourses were Tata Steel, M&M, Reliance, BHEL, Nalco, Reliance Petro and Dr Reddy's Labs while losers - HDFC Bank, HDFC, Hindustan Unilever, NTPC, Suzlon Energy and Sun Pharma.

The BSE Midcap was up 0.59% at 7,148.05 as buying seen in Praj Industries, HMT, Orbit Corp, Firstsource Sol, Chambal Fert, Mercator Lines, Guj NRE Coke and GTL Infra, which gained 6-11%.

The BSE Small cap Index rose 1.51% at 8,788.98. Small cap stocks like Andhra Petro, Jayshree Tea, Supreme Petro, CCL Products, Gabriel India, BAG Films, Mcleod Rus, Navin Fluorine, Tamilnadu Petro, NELCO and Timex Group Ind gained over 10%.

HDIL, Cairn India and Reliance were most active counters on the bourses.

Oil & Gas stocks were the star performers of the day. BSE Oil & Gas Index surged 2.36% or 263.19 points to settle at 11,432.80 as buying seen in RNRL, Essar Oil, Petronet LNG, Reliance, BPCL and HPCL. The Nymex July Crude hit new high of USD 130.28 per barrel.

Metal stocks shined in late trade. BSE Metal Index shot up by 1.24% or 213.31 points at 17,390.28 as gain in Guj NRE Coke, NALCO, Tata Steel, Hind Zinc, Ispat Industries, Jindal Saw and Jindal Steel.

Capital Goods stocks like Kirloskar Bros, Praj Industries, Rel Ind Infra, Alstom Projects, Punj Lloyd, Areva T&D and BHEL looked strong. Capital Goods Index closed at 13,670.08, up 0.79% or 106.60 points.

Auto Index went up 0.40% at 4,782.90 as stocks like Escorts, MRF, M&M, Apollo Tyres, Tata Motors, Hind Motors and Amtek Auto climbed.

However, banking stocks underperformed the markets. BSE Bankex lost 1.41% or 123.95 points to settle at 8,639.90 due to selling in HDFC Bank, Union Bank, Kotak Mahindra, Bank of India, ICICI Bank, Centurion Bank and PNB.

Pharma stocks like Glenmark, Sterling Bio, Cipla, Nicholas Piramal, Sun Pharma, Aurobindo Pharm and Ranbaxy Labs also witnessed selling pressure. Healthcare Index finished at 4,245.69, down 0.57%.

IT Index lost 0.31% at 4,453.35 as technology stocks like Tech Mahindra, Infosys, Satyam and Wipro lost ground. The Indian Rupee was trading at 42.76 per dollar.

Total turnover witnessed by markets stood at Rs 61843.49 crore including Rs 15260.23 crore from NSE Cash segment, Rs 39481.17 crore from NSE F&O and Rs 7102.09 crore from BSE Cash segment.

On the global front, Asian markets ended mixed after showing some recovery; Shanghai was up 3%, Hang Seng up over 1% while Nikkei down 1.65% and Kospi slipped 1.4%. European markets opened mixed but recovered then and was trading higher at the time of writing market report.

Markets Snapshot

• Markets recover from days low in line with Asian markets
• Sensex ends up 13 pts at 17243; recovers nearly 200 pts from days low
• Nifty ends up 12.7 pts at 5118; recovers nearly 70 pts from days low
• Midcap and small cap continue to outperform major indices
• CNX Midcap Index up 0.78%; BSE Small-cap Index up 1.5%
• BSE Oil & Gas Index up 2.36%; Nymex July crude hits new high of $ 130.28/bbl
• Oil & Gas stocks; RIL up 2.5%, RPL up 3.8%, BPCL up 2.25%
• BSE Metal Index up 1.24%; Metal stocks; Nalco up 5.2%, Tata Steel up 3%
• BSE Bank Index down 1.4%; HDFC Bank down 3.5%, ICICI Bank down 1.7%, PNB down 1.5%
• Tea and petro stocks buzz in midcap and small cap space
• Tea stocks; Harrison Malayam, Duncans up 20%, Jay Shree Tea up 17%
• Petro stocks; Manali Petro up 20%, Andhra Petro up 17%, Supreme Petro up 16%
• Other buzzers; Videocon Appliances up 20% for 2nd day runinng
• Relisting: KGN Ind shares suspended during the day; ends at Rs 15000 Vs relisting price of Rs 72, volumes traded at 827 shares
• NSE Advance Decline at 2:1
• Total market turnover at Rs 61843 cr Vs Rs 52860 cr on Tuesday
• Total NSE F&O turnover at Rs  39481 cr Vs Rs 33290 cr on Tuesday

F&O Snapshot

• Nifty futures prem at 7 pts Vs 8 pts discount yesterday; add 19.3 lakh shares in OI
• Some p[rofit booking seen in the last half an hour of trade; Nifty OI addition came down to 19.3 from 29 lakh shares
• 5000 put add 1.85 lakh shares in OI; 4800 put shed 1.5 lakh shares in OI
• 5000 call add 1 lakh shares in OI
• Momentums stosk witness long additions like Chambal Fert, RPL, Nag fett, Ispat, Praj, RNRL, HOEC, Essar Oil
• Short covering seen in Rel Power, IDBI, lanco, India cement, BHEL, DRL
• Fresh shorts seen in NTPC, HUL, ICICI Bank

Buzzers in F&O

• Praj up 11%; add 10.3 lakh shares in OI
• Aptech up 9.3%; add 71 thousand shares in OI
• IFCI up 7.8%; add 64 lakh shares in OI
• HOEC up 7%; add 14 lakh shares in OI
• Chambal fert up 6%; add 29 lakh shares in OI

Asia Today

• Asian markets recover from day's low particularly China and Hong Kong
• Shanghai recovers nearly 5.5% led by refinery stocks like PetroChina (up 2.5%) & Sinopec (up 10%)
• Market speculation that the government will raise oil prices

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