Moneycontrol
Sep 13, 2012 11:58 AM IST | Source: Moneycontrol.com

Sensex near 7-month high; ONGC, Hero Motocorp, GAIL up 2%

The BSE Sensex was trading near seven-month high, supported by banks, oil & gas, capital goods, technology and two-wheeler stocks. The index rose 55.41 points to 18,055.44, a highest leve since February 24. Meanwhile, the NSE Nifty was inching closer to 5450 level, which moved up 13 points to 5,444.20.

Sensex near 7-month high; ONGC, Hero Motocorp, GAIL up 2%

The BSE Sensex was trading near seven-month high, supported by banks, oil & gas, capital goods, technology and two-wheeler stocks. The index rose 55.41 points to 18,055.44, a highest leve since February 24. Meanwhile, the NSE Nifty was inching closer to 5450 level, which moved up 13 points to 5,444.20.


Huge inflow of foreign money too continued to support the Indian equities as foreign institutional investors have been bought more than Rs 22,000 crore worth of equity shares since July while the benchmarks rallied 3% during the same period.


Traders have been adding long positions on hopes of another economic stimulus by the Federal Reserve today in its policy meeting. Tobias Levkovich, chief US equity strategist, Citi says he is expecting two things. "One, our economists are suggesting that the language will be extended from 2014 to the end of 2015 in terms of keeping interest rates low. Two, there will be some programme, given the weak jobs numbers last week," he elaborates.


The hopes of fuel price hike also led the support. Oil retailers BPCL, HPCL and IOC were up 1-2% ahead of a meeting of cabinet committee on political affairs today in the evening, say sources.


State-owned oil & gas producer ONGC, gas transportation services provider GAIL and two-wheeler major Hero Motocorp rallied 2% each.


Index heavyweight Reliance Industries, private sector lender ICICI Bank, engineering and construction major Larsen & Toubro, public sector lender State Bank of India and two-wheeler maker Bajaj Auto gained over 1%.


Drug producer Cipla topped the selling list with 2.6% losses. Housing finance company HDFC and telecom operator Bharti Airtel dropped over 1%. Shares of Sterlite Industries and Jindal Steel declined over 1% too.


Utility vehicle major Mahindra & Mahindra and commercial vehicle maker Tata Motors were down 0.6% each.


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At 10:26 hours IST: Sensex hovers around 18000; Reliance, ICICI, L&T gain 1%


The 30-share BSE Sensex was trying to hold the 18,000 level amid choppy trade. The upmove in Reliance Industries, ICICI Bank, L&T and SBI counterbalanced the weakness in HDFC pack, metals stocks, HDFC, Tata Motors and ITC.


The BSE benchmark moved up 31 points to 18,030.99 and the NSE benchmark went up 3.65 points to 5,434.65.


Index heavyweight Reliance Industries and state-run oil & gas producer ONGC gained 1% and 1.4%, respectively.


Country's largest private sector lender ICICI Bank rose over 1% while its rival State Bank of India was up 0.4%.


Engineering conglomerate Larsen & Toubro climbed over 1%; state-owned power equipment manufacturer BHEL rebounded with 1.75% gains after falling in previous sessions on concerns over order book.


Software services exporters TCS and Wipro were up 0.6-1% while their rival Infosys was flat.


Two-wheeler major Hero Motocorp rallied 2% and its rival Bajaj Auto was up 1.4%. Commercial vehicle maker Tata Motors and utility vehicle major M&M fell 0.4% each.


Telecom operator Bharti Airtel topped the selling list with 1.8% losses. Housing finance company HDFC was down over 1%.


Cigarette major ITC and private sector lender HDFC Bank declined over 0.3%. Drug producer Cipla lost more than 1%.


Asian markets remained mixed ahead of Federal Reserve's policy meeting that will be come out with conclusion at 11:45 hours IST.


At 9:20 hours IST: Sensex, Nifty volatile on lacklustre global markets


The BSE Sensex and NSE Nifty were volatile in early trade as the global markets moved into consolidation mode ahead of decision by the Federal Reserve in its policy meeting today.


The BSE benchmark rose 17.40 points to 18,014.73 and the NSE benchmark was up 0.45 point at 5,431.45.


The market had priced in the favourable outcome of German’s Constitutional Court ruling on ESM and Dutch polls yesterday; now all eyes are on Federal Reserve's policy meeting that will be at 11:45 hours IST today. Economists feel the Fed in all likelihood should extend its forward rate guidance atleast to mid 2015.


Michael Gapen of Barclays expects the Fed to extend its rate guidance into 2015 and launch an open-ended asset purchase program. "We believe that the treasury market is not yet adequately pricing in the Fed's resolve to ease monetary policy," he added.


Back home, ICICI Bank, Wipro, Larsen & Toubro, ONGC, NTPC, ACC, Sun Pharma, Maruti Suzuki and Bajaj Auto were supporting the market.


Oil retailer BPCL gained 1% ahead of meeting of cabinet committee on political affairs today to decide on fuel price hike.


Sesa Goa tanked another 2% after the news that the Union Ministry of Environment and Forest (MoEF) has suspended environmental clearance of 93 Goa mines.


The weakness in JSPL, Sterlite Industries, IDFC, Bharti Airtel, Kotak Mahindra Bank, Reliance Industries and Infosys capped the upside.


The CNX Midcap Index rose 16 points to 7,312 as the positive market breadth.


In the second line shares, Godrej Properties was up 3% as the company sold its entire Phase 1 of its Gurgaon project on opening day.


Divestment candidates: Hindustan Copper and Oil India were up 1%. NALCO surged 3.5% and Neyveli Lignite gained 1.5%.


NIIT rose 2.5%. Panacea Biotec rallied 4%, continuing the run-up that added 66% gains in five sessions. 


Government says the cabinet may consider FDI cap hike to 74% in cable TV services. Dish TV, Hathway Cable and Den Network moved up 1.5-3%.


Jet Airways, Kingfisher Airlines and SpiceJet went up 0.5-1.5%, rising for the second consecutive session.

Deccan Chronicle Holdings (DCHL) plunged 6% as The Economic Times reported that most bankers feel the company may not qualify for corporate debt restructuring (CDR). The Times of India said the Bombay HC has put a temporary halt on any sale of properties in Andhra Pradesh, TamilNadu by DCHL.

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