Mkts rebound sharply led by CG, banks, realty, power stocks

Markets have rebounded smartly on the back of strong global cues and some cool off in crude oil prices. It has broken five days losing streak and recovered majority of losses. Rally has been led by infrastructure, rate sensitive, oil and technology stocks. However, metal stocks remained under selling pressure. Midcap and small cap stocks were also on buyers radar. Sensex closed above 13000 and Nifty above 3900 levels.

The Sensex surged 574.55 points to hit an intraday high of 13,150.35 as against its previous close of 12,575.80. It closed at 13,111.85, up 536.05 points or 4.26%. Nifty Fifty Index went up 152.05 points to touch a high of 3968.75 before closing the day at 3947.20, up 3.42% or 130.5 points.

Reliance Industries, ONGC, DLF, SBI, L&T, TCS, HDFC, ICICI Bank and Infosys Tech were top contributors in the gain of both indices.

Top Ten contributors to Sensex

Most of the action seen in stock futures space with a long bias. Nifty July Futures ended with a discount of 15 points. More than 30% OI build up was seen in stocks like Colgate, LIC Housing, Mphasis and Polaris. Large cap IT stocks saw short covering. Fresh long has seen in Infrastructure stocks like Punj Lloyd, Nagarjuna Construction and JP Associates. Hugh unwinding was seen in Nifty Call Options.

BSE Bankex was star of the day, shot up by 327.36 points or 6.06% to settle at 5,727.60. Axis Bank, Union Bank, SBI, Bank of India, ICICI Bank, HDFC Bank and Kotak Mahindra have gained 5-9%.

Capital goods stocks like Siemens, Punj Lloyd, Crompton Greaves, L&T, Astra Microwave, Areva T&D and BHEL were up 5-9%. Index rose by 601.48 points or 5.92% at 10,762.01.

Realty stocks also bounced back sharply, index went up 208.90 points or 4.95% at 4,428.02. DLF, Ansal Properties, Parsvnath, HDIL, Unitech, Peninsula Land and Omaxe surged 3-8.4%.

Amongst frontliners, HDFC shot up by 9.78%, Maruti Suzuki 9.46%, Jaiprakash Associates 9.19%, BPCL 9.27%, Siemens 8.81%, DLF 8.44% and SBI 7.75% while Sterlite Ind lost 5.88%, SAIL -5.51%, NALCO -4.43%, Ranbaxy Labs -3.87%, Cairn India -2.85% and Tata Steel -2.92%.

Power stocks completely charged, like Lanco Infratech, Reliance Infra, Tata Power, Power Grid Corp, GMR Infra, Suzlon Energy and Reliance Power. Index was up 4.2% to settle at 2,302.77.

Auto Index advanced 141.29 points or 4.16% to close at 3,535.78 due to buying in Maruti Suzuki, Exide Industrie, Bharat Forge, M&M, Tata Motors and Hero Honda, which gained 3-9.5%.

Oil stocks like BPCL, GAIL, IOC, HPCL, ONGC, RNRL and Reliance Ind also shot up by 3.6-9%. Index rose 263.69 points or 3.07% at 8,852.08.

Crude slipped by USD 1.42 to USD 133.18 per barrel on the NYMEX. Peter McGuire, MD of Commodity Warrants Australia, said crude prices will stay high given the dollar weakness and gold strength.

He said if crude breaks below USD 130 per barrel, it could go down to USD 123-124 per barrel.

IT Index went up by 108.22 points or 3.03% at 3,675.20 as buying was seen in TCS, I-Flex Solution, Satyam, Mphasis, Wipro, Infosys and Tech Mahindra, which rose 2-7%.

Amongst telecom stocks, Reliance Comm, Tata Comm, Bharti Airtel, MTNL, TataTeleservices and Idea Cellular surged.

FMCG Index was up 2.34% at 1,941.94 due to gain in Marico, ITC, Tata Tea, HUL and Nestle.

BSE Midcap gained 67.06 points or 1.32% at 5,155.34 and Small Cap Index 62.67 points or 0.99% at 6,387.12. Amongst midcap stocks, BGR Energy, IVRCL Infras, UB Holdings, Essar Shipping, Balaji Telefilm, Gateway Distri and Bombay Rayon went up by 8-20%.

In the small cap space, Polaris, Eimco Elecon, Unichem Labs, Hitachi Home, Maha Scooters and Timken rose by 11-15.5%.

Healthcare Index ended flat at 3,976.28. Buying was seen in Glenmark, GlaxoSmithKline, Cadila Health, Pfizer, Wyeth, Divis Lab, Dr Reddys Labs while selling in Biocon, Ranbaxy Labs, Orchid Chemical and Dishman Pharma.

However, Metal Index lost 238.62 points or 2% at 11,697.30 on fears that there is likely cap on steel-price hike, which hit sentiment. Selling seen in SAIL, Sterlite Ind, NALCO, NMDC, Jindal Steel and Tata Steel, which plunged 3-6%.

Market breadth was positive; about 1643 shares have advanced while 1268 shares declined. Nearly 239 shares remained unchanged.

Most active counters were Ranbaxy Labs, Reliance Ind, L&T, Reliance Infra, ICICI Bank and Reliance Petroleum.

BGR Energy was up 20% for second straight session as it had received Rs 4900 crore worth of order yesterday.

Polaris went up 16% on strong Q1 performance and announcement of Real Estate foray.

Total turnover traded by markets stood at Rs 62,852.9 crore. This includes Rs 11,697.25 crore from NSE Cash segment, Rs 46,300.96 crore from NSE F&O and balance Rs 4,854.69 crore from BSE Cash segment.

On the global front, Asian markets ended higher barring Shanghai and Jakarta. Hang Seng rose 2.4%, Nikkei 1%, Straits Times 1.02%, Kospi 1.2% and Taiwan Weighted 3.93%. However, Shanghai fell 0.78% and Jakarta Composite 2.27%.

European markets were trading strong on account of buying banking stocks, at the time of writing market report. FTSE was up 1.16%, CAC 1.73% and DAX 1.35%.

Markets Snapshot

• Markets witness a strong pull-back after losing for 5 straight sessions; close at day's high
• Interest rate sensitives lead the rally
• Sensex ends up 536 pts at 13112; Nifty up 130 pts at 3947
• CNX Midcap Index up 1.9%, BSE Small-cap Index up 1%
• All sectoral indices except metals end in the green
• BSE-Bank Index up 6.3%; HDFC up 10%; SBI up 8.4%, ICICI Bank up 6.2%, HDFC Bank 6.1%
• BSE Cap-Goods Index up 6.3%; Siemens up 8.8%, L&T up 8%, BHEL up 5.3%; ABB up 4.4%
• BSE Realty Index up 5.4%; DLF up 9.3%; Unitech up 3.8%
• BSE Auto Index up 4%; Maruti up 9.3% ahead of results on Monday, M&M up 4.3%
• BSE Oil and Gas Index up 3.5%; BPCL up 9.3%; IOC up 7.5%; HPCL up 5.6%; ONGC up 4.5%, Reliance up 3.9%
• BSE Metals Index down 2%; Likely cap on steel-price hike hits sentiment
• SAIL down 5.5%, Tata Steel down 2.9%, Sterlite down 5.9%
• Star Performers: Polaris up 16% on strong Q1 performance and announcement of Real Estate foray 
• Results Impact: TCS, Mindtree, Polaris, Biocon, Chambal Fert, Unichem Labs,United Breweries     
• NSE Advance Decline at 2 : 1
  Total F&O turnover at Rs 46,300 cr Vs Rs 45,738.2 cr; 
• Total market turnover at Rs 62,852 cr Vs Rs 61,636.2 cr on Wednesday
• Buzzers
  BGR Energy up 20% for second straight session
  First Winner up 16%
  IVRCL Infra up 15%
  Essar Shipping up 10%
  JP Associates up 9%

F&O Snapshot

• Most of the action seen in Stock Futures space with a long bias
• Nifty fut ends with a discount of 15 points
• More than 30% OI build up sees in stocks like Colgate, LIC Housing, Mphasis & Polaris
• Metal stocks see short build up in today’s trade
• Mid Cap IT stocks like Polaris & Mphasis see fresh long build up
• Large Cap IT stocks see Short covering
• Fresh Longs seen in Infra Stocks like Punj Lloyd ,Nagar Const & JP Associates
• Short Covering seen in Cap Goods
• Hugh unwinding seen in Nifty Call Options
• Options Activity:
  Nifty 4000 call sheds 6.7 lakh shares
  Nifty 4100 call sheds 4.3 lakh shares
  Nifty 4200 call sheds 3 lakh shares
• Fresh Longs:
  Infra :Punj Lloyd, Nagar Const & JP Associates
  IT: Polaris, Mphasis
  Misc: RNRL, Renuka,GMR,IFCI,ICICI Bank
• Fresh Shorts:
  Metals: SAIL,Sterlite,Nalco,Tata Steel
  Misc: Cairn, RPL
• Short Covering :
  IT : Satyam , Infosys, TCS

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