Sensex ends up 524-pt; Bankex up 8%, O&G gains 4%

It was a spectacular session for markets, which ended second straight day on a stronger note. Stunning performance was seen from banking, realty, oil, capital goods, power and FMCG stocks. The Sensex gained over 1100 points and Nifty 300 points from weekly lows of 12,514 and 3,790, respectively. Reliance Industries, Bharti Airtel, ICICI Bank, ONGC, HDFC and L&T were top contributors in the gain of indices.

Sensex surged 572.42 points to hit an intraday high of 13,684.27. It closed at 13,635.40, a jump of 523.55 points or 3.99% over previous close.

Nifty clawed back above 4100 and touched a high of 4110.55 with a gain of 163.35 points. But it ended at 4092.25, gain of 145.05 points or 3.67%.

Fresh longs were seen in Nifty Futures, which added 51.7 lakh shares in Open Interest. Most of the action was seen in IT and banking stocks. Infra stocks like J P Associates and Punj Lloyd continued with long build up. Capital Goods stocks like L&T and BHEL have seen fresh longs. Aggressive Put writing was seen in Nifty 3900-4000 options.

Top Ten contributors to Sensex

On the weekly basis, Sensex jumped up around 1.3% and Nifty up around 1.2%. BSE IT Index plunged 8.3% due to weak guidance from tech giants like Satyam and Wipro. BSE Metal Index fell 7.5%. Top buzzers are BGR Energy, ORG Info and Essar Shipping, which rose 33%, 25% and 11%, respectively.

Amongst frontliners, ICICI Bank rose 12.05%, HDFC 9.47%, HDFC Bank 7.87%, Jaiprakash Associates 7.72%, DLF 7.16% and Bharti Airtel 7.10% while Satyam lost 7.51%, HCL Tech -5.36%, Wipro -3.75 %, Ranbaxy Labs -3.26%, Tata Steel -2.43% and Infosys -2.20%.

Top gainers on Sensex

Banking stocks were outperformers of the day, index shot up by 461.29 points or 8.05% to settle at 6,188.89. This includes ICICI Bank, Yes Bank, Axis Bank, HDFC Bank, PNB, Union Bank, SBI, Bank of India and IOB, which went up 5-12%.

Splendid performance was also seen from realty stocks like Ansal Properties, Indiabulls Real, DLF, Orbit Corporation, HDIL, Sobha Developers and Unitech, which surged 4.5-8%. Index ended with a gain of 242.22 points or 5.47% at 4,670.24.

Oil & Gas Index gained 379.96 points or 4.29% at 9,232.04 due to huge buying in GAIL, Reliance Ind, IOC, HPCL, ONGC and Essar Oil, which rose 4-5.4%. Crude was up by USD 2.09 at USD 131.38 per barrel on the NYMEX.

Capital Goods stocks like Alstom Projects, BEML, BHEL, Punj Lloyd and L&T moved up by 4-6%. Index was up 384.50 points or 3.57% to settle at 11,146.51.

Power stocks also completely charged up, gained 2.7%-6%. This includes Reliance Infra, Power Grid Corp, NTPC, Lanco Infratech, ABB and Neyveli Lignite. Power Index shot up 79.04 points or 3.43% at 2,381.81.

FMCG Index rose 2.79% to close at 1,996.04. Colgate, ITC, Marico, Nestle and P&G gained 2.8%-5.6%.

Auto stocks like Escorts, Maruti Suzuki, Hero Honda, Bharat Forge, Tata Motors, MRF and M&M ended with strong gain. Index jumped up by 1.84% at 3,600.93.

Healthcare Index rose 0.37% at 3,990.85 due to buying in Glenmark, Wyeth, Dr Reddy's Labs, Ipca Labs, Sterling Bio, Cadila Health and Cipla. However, Ranbaxy hammered a lot, down 17.5% in this week, on concerns that probe by USFDA may hit sales of the company. It closed at 437.45, down 3.26% for the day.

BSE Midcap ended with a gain of 84.05 points or 1.63% at 5,239.39 and Small cap Index up 1.08% at 6,455.89. Amongst midcap stocks, Patel Engg, Essar Shipping, Jet Airways, Guj NRE Coke, Yes Bank and Shriram City shot up by 9-12%

In the small cap space, Arihant Found, Banco Products, Numeric Power, Usher Agro, Selan Explore and Empire Ind gained 11-16%.

However, IT Index lost 94.55 points or 2.57% at 3,580.65 due to poor guidance from Satyam and Wipro. Satyam, Mphasis, HCL Tech, Wipro and Infosys crashed 2-7.5%.

Market breadth was positive; about 1748 shares have advanced while 1157 shares declined. Nearly 245 shares remained unchanged.

Most active counters on the bourses were Reliance Ind, ICICI Bank, L&T, Satyam and Bharti Airtel.

Total turnover traded by markets stood at Rs 70,983.73 crore. This includes Rs 12,870.69 crore from NSE Cash segment, Rs 52,794.98 crore from NSE F&O and the balance Rs 5,318.06 crore from BSE Cash segment.

On the global front, Asian markets ended mixed. Nikkei fell 0.65%, Straits Times -0.57%, Kospi -1.02%, Taiwan Weighted -2.28% and Jakarta -1.23% while Shanghai gained 3.49% and Hang Seng 0.64%.

European markets were trading marginally in green, at the time of writing market report.

Market Snapshot 

• Markets surge in later part of the day led by financials for 2nd day running
• Sensex ends up 524 pts at 13635.4; Nifty up 145  pts at 4092.3
• CNX Midcap Index up 2%, BSE Small-Cap Index up 1.1%
• BSE-Bank Index up 8%; ICICI Bank up 12%, HDFC Bank 8%, PNB up 7.1%, SBI up 5.5%
• BSE Realty Index up 5.5%; DLF up 7.2%; Unitech up 5%; Indiabulls Real up 7.7%
• BSE Oil and Gas Index up 4.3%; Reliance up 4.7%, ONGC up 4.6%, HPCL up 4.2%, IOC up 7.5%
• BSE Cap-Goods Index up 3.6%; BHEL up 5.5%;Punj Llyod up 5.3%, L&T up 4.3% ABB up 3.7%
• BSE IT Sector Index down 2.6%; Satyam ends down 7.5% post results; HCL Tech down 5.4%, Wipro down 3.7%, TCS up 1.4%
• Index Gainers: HDFC up 9.4%, Bharti Airtel up 7.2%, Reliance Infra up 6%, Nalco up 6%, Power Grid up 5.6%, ITC up 5.4%
• Index Losers: Ranbaxy down 3.5%, Infosys down 2.2%, Sterlite down 1.9%
• Results Impact: Tata Steel, Wipro, Satyam, Sasken, GE Shipping, IDFC, Allahabad Bank, Ultratech, Guj NRE, Chennai Petro
• Buzzers: IDFC up 15%, Indian Bank up 11%, Selan up 10.5%, Yes Bank, Guj Nre Coke up 9%, Axis Bank up 7.8%, JP Ass up 7.5%
• NSE Advance Decline at 2 : 1
• Total F&O turnover at Rs 52795 cr Vs Rs 46,300 cr; 
• Total market turnover at Rs 70983.7 cr Vs Rs 62,852 cr on Thursday

F&O Snapshot

• Fresh longs seen in Nifty Fut; adds 51.7 lakh shares in OI
• Most of the Action in IT & Banking Stocks
• Mix of Short covering and Aggressive long build up in banking & financials
• Fresh Short positions in IT stocks after yesterdays short covering
• Infra stocks like J P Associates & Punj Lloyd continues with long build up
• Cap Goods stocks like L&T & Bhel sees fresh longs
• Aggressive Put writing in Nifty 3900-4000 options
• Option Activity:
  Nifty 3900 put adds 12.9 lakh shares
  Nifty 4000 put adds 6.8 lakh shares
  Nifty 4000 call sheds 2.2 lakh shares
• Fresh Longs :
  Banks & Financials: IDFC, HDFC, Dena Bank, Canara Bank, SBI, Rel Cap
  Infra : JP Associates, Punj Lloyd
  Cap Goods : L&T & BHEL
  Misc : RNRL, IFCI
• Fresh Shorts:
  IT : Satyam , Wipro ,Mphasis , HCL Tech
  Misc : Ranbaxy , Bajaj Hind , Sterlite
• Short Covering :
  Banks : ICICI Bank & Indian Bank
  Misc: Idea , Power Grid

Markets This Week

• Sensex up 1.3%; recovers nearly 1,121.4 pts from week's low of 12,514
• Nifty up 1.2%; recovers nearly 302.25 pts from week's low of 3,790
• CNX Midcap Index down 1.5%, BSE Smallcap down 3.6%
• BSE IT Index down 8.3%; Satyam down 13.5%, Wipro down 10.5%, Infy down 7.5%
• BSE Metal Index down 7.5%; Tata Steel down 10%, SAIL, Sterlite down 9%
• BSE Oil & Gas Index up 4.3%; ONGC up 11.5%, RIL up 5.3%, Cairn down 9%
• BSE Cap Goods Index up 3.7%; L&T up 8%, ABB up 6%
• BSE Bank Index up 2.6%; PNB up 11.5%, SBI up 7%, ICICI Bk up 4.5%
• Ranbaxy down 17.5% on concerns that probe by USFDA may hit sales
• Buzzers: BGR Energy up 33%, ORG Info up 25%, Essar Shipping up 11% 
• Buzzers: SpiceJet down 18%, Moser-Baer down 17%, Mundra Port down 15%

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