Moneycontrol
Apr 02, 2012 10:49 AM IST | Source: Moneycontrol.com

Sensex choppy; PTC India, PFC, REC on buyers' radar

The BSE Sensex continued to trade higher amid volatility, rising over 50 points due to consistent buying in capital goods, banks, metals and power stocks. Non-banking finance companies, which provide finance to power projects, were on buyers' radar today; PTC India shot up 6.5%.


The BSE Sensex continued to trade higher amid volatility, rising over 50 points due to consistent buying in capital goods, banks, metals and power stocks.


Non-banking finance companies, which provide finance to power projects, were on buyers' radar today; PTC India shot up 6.5% while Power Finance Corporation and Rural Electrification Corporation gained 4% each. The Tamil Nadu Electricity Regulatory Commission has approved 37% tariff hike which will generate additional Rs 78,700 crore for the state utility in FY13. CLSA said this is a big relief for private players.


The BSE benchmark gained 55 points at 17,459 and the NSE benchmark was up 12 points at 5,307.40 while the broader markets outperformed benchmarks. The BSE Midcap and Smallcap indices rose 1% each.


Engineering and construction major Larsen & Toubro jumped 1.7% and state-owned Bharat Heavy Electricals was up 1.5%.


Country's largest lender State Bank of India moved up 1% while rivals HDFC Bank gained 0.6% and ICICI Bank was flat.


TCS, top software services exporter and Bharti Airtel, India's largest telecom operator were up nearly 1%. However, India's most valued stock Reliance Industries fell 0.7%. FMCG majors ITC and HUL were down 0.4% and 1%, respectively.


Bajaj Auto, second largest two-wheeler maker, dropped 1.6% ahead of auto sales numbers for March.


The market breadth was strong; about 4 shares advanced for every share falling on the BSE.


Stocks In News


Tata Motors rose 1% after company's total sales for March jumped 20.4% to 1 lakh units year-on-year.


Mahindra and Mahindra gained 1.4% as the company posted 25% growth year-on-year in vehicle sales for March at 47,001 units.


Eicher rallied 2.6% as it sold 6,051 units (trucks and buses) in March as against 5,065 in same month of previous year.


Coal India fell 1.65% after the TCI decided to launch legal action against the company.


IVRCL management was supposed to meet over the weekend to discuss Essel group buying 10%. The stock rose 2%.


Varun Shipping surged 8.6% after the company decided to demerge shipping management business and investment business.


HCC gained 2.5% after the company sold its 7% stake in Jyoti Ltd.


Zee Entertainment surged close to 3% ahead of board meeting on April 4 to again consider a buy-back. In the last buy back, the company has managed to buy back shares worth only Rs 232 crore versus Rs 700 crore. The Business Standard reported that Subhash Chandra promoted Zee Group is close to buying out Dainik Bhaskar.


Yes Bank was up 1.55% amid heavy volume after the Economic Times reported that the company raised Rs 380 crore from IFC and will raise USD 400 million via GDR. Even it was the most active stock today.


_PAGEBREAK_


At 9:19 hours IST: Sensex opens with moderate gains; banks, auto support


The BSE Sensex gained more than 50 points in early trade amid volatility after opening flat on first day of April. Banks and auto stocks were on buyers' radar while index heavyweight Reliance Industries was under pressure. It will be truncated week for the market due to holiday on Thursday and Friday.


The BSE benchmark was up 75 points at 17,479.14 and the NSE benchmark rose 16 points to 5,311.50. 


Coal India was down 2% after TCI said it would launch legal action against the company and instructed its lawyers Luthra & Luthra to begin legal process against CIL.


BPCL fell 1.3% as hopes of fuel price hike eased for the time being.


Sterlite Industries, Axis Bank, ICICI Bank, HUL, Reliance Industries, L&T, Ranbaxy Labs, Infosys, Sesa Goa, ONGC, ACC, DLF and Ambuja Cements gained 0.5-1%.


However, Tata Motors and M&M gained more than 1% after better than expected sales numbers in March 2012. Tata Motors' sales went up 20.4% to 1 lakh units YoY and M&M's sales rose 25% to 47,001 units.


Kotak Mahindra Bank, TCS, Bajaj Auto, Reliance Power, Bharti Airtel, SBI and ITC too were supporting the market.


The CNX Midcap Index rose 17 points to 7,728.


In the second line shares, Aurobindo Pharma tanked 6% amid heavy volume.


Dhanlaxmi Bank lost 1.5%. Kingfisher Airlines was down 2%.


Power financing companies (non banking finance companies) PTC India, PFC and REC shot up 3-4%.


Titan Industries was up 4% as The Financial Express reported that the company was allowed by DGFT to import gold directly, which will save around 1% cost.


IVRCL gained 1.5%. TVS Motor jumped 2.5% ahead of auto sales numbers for March. 


Manappuram Finance rebounded with 1.6% gains after losing more than 15% in last week.


JHS Svendgaard shot up for third consecutive session today, gaining 11% after the company said it would allott 5 lakh shares on preferential basis to promoter Nikhil Nanda at Rs.97.75/share.

Zee Entertainment surged nearly 3% as Business Standard reported that Subhash Chandra promoted Zee Group is close to buying out Dainik Bhaskar. The company will have board meet on April 4 to consider a buy-back again.

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