Mkts still lack momentum

Today we did not start very well but ended pretty okay; early in the morning within minutes of opening, we had reasonably good cues from the Asian markets, the Sensex all of a sudden went down a couple of 100 points. It looked a bit worrying but then it’s stabilised. The Nifty never went below the 5,050 mark and then a process of reconstruction started. At the end of it, we clawed back to 5,200 for the Nifty which is not a bad place to close with about 100 points up just under and then Sensex was nearly 500 points of the lows of the day closing about 300 points up.

Reliance Industries after a long time made a Rs 100 move and that sparked off interest in many other largecaps. So by the end of the session, we saw some buying in the largecap universe today like ACC, Ranbaxy,Gail, Maruti, Nalco, Unitech, and Infosys just to mention few.

Reliance Power of course was expected to do well but it started off on a fairly flattish kind of note, picked up in the second half of the session and made it back to Rs 450. The issue price is here again on Reliance Power, it closed the day around Rs 450 mark of course with some help from the 3:5 bonuses.

The other stock in the news were HDFC Bank and Centurion Bank of Punjab and both ended down; HDFC Bank down about 4% amidst concerns that the bank might actually have paid quite a bit for the acquisition. Centurion Bank of course got hit by the merger ratio 1:29 which is why the stock tanked about 14% today sub-Rs 50 is where it closed.

IRB Infra started sluggish and went back to about Rs 190 on its issue price of Rs 185. The other one Tulsi Extrusion saw many times its equity changing hands today typically what happens with these smaller issues and the Rs 85 issue price closed around Rs 140.

Lots of other midcap winners like JP Associates is showing signs of stability after the fall, KS Oils went up on spectacular volumes today, there was buying in Gujarat NRE Coke, TVS Motors, India Cements to mention a few.

Sugar was the one sector, which looked weak today almost across the board with the exception of Triveni, which had a fairly bad day.