Sensex ends 206 points up on easing inflation

Indian equity benchmarks gained strength in the second half of trade on Thursday - after witnessing consolidation since Tuesday - to close at three-week highs, especially triggered by easing food inflation in the month of February. Financial, capital goods, auto, select metal and technology companies' shares lent strong support to the markets. Heavyweight Reliance Industries too rallied.

India's food inflation eased to a two-month low in early February on moderating prices of onions and other vegetables, amid expectations that the government may announce fresh measures to boost productivity for key staples in the upcoming budget.

India's food price index rose 11.05%, the lowest reading since the first week of December, and the fuel price index climbed 11.92% in the year to February 5, government data on Thursday showed. Primary articles index increased 14.59% as against 16.24% on week-on-week basis.

Aditi Nayar, Economist of ICRA said the decline in food inflation was led by continued correction in vegetable prices. However, this was offset to an extent by an increase in the price of pulses, non-vegetarian protein items, fruits and condiments.

"While wholesale prices of vegetables may ease further in the coming weeks, prices of other food items are likely to remain sticky and average food inflation may remain in the low double-digits in February 2011," she said.

Finance Minister Pranab Mukherjee sees overall inflation going down over the next 1-2 months.

The benchmark Nifty continued the uptrend for the fifth consecutive session and settled a tad below the 5550 level. Abhijit Chakraborty, Fortune Financial said that pre-budget rally might take the Nifty to 5,600 and beyond.

He explained that people are still waiting for clarity before rushing to buy. However, Chakraborty does not see the budget to be a game-changer.

The 50-share NSE Nifty went up 65 points, to end at 5,547 and the 30-share BSE Sensex jumped 206 points, to close at 18,507.

Deven Choksey of KR Choksey believes that around 5500-5550 levels the Nifty is quoting at 16% growth rate and at 15 times forward PE that is giving a kind of a stability to the market. "We should be seeing some stability taking place at least prior to the budget then probably take a larger call and the movement of the market," he said.

Heavyweights HDFC Bank, HDFC and Bharti Airtel were the leading stars on Nifty with 3.5-4% gain. Other largecaps like Reliance Industries, SBI, BHEL, L&T, TCS and L&T gained 1-2.5%.

IDFC was the top gainer with 5% rally. SAIL and Tata Steel from metal space went up 2%. ICICI Bank and Tata Motors climbed 0.6-%.

However, ONGC, Wipro, NTPC, HUL, HCL Tech, GAIL and Reliance Power were down 0.4-1.4%.

In midcap space, ARSS Infra surged 20%. Manappuram, Sobha Developer, Techno Electric and Coromandel International gained 7-12% while Jubilant Life, KGN Industries, Gujarat NRE Coke, Prakash Industries and Prestige Estate fell 4-7%.

In smallcap space, Zee Learn, Madhucon Project, Everonn Education, Entegra and HBL Power jumped 12-20% whereas Parrys Sugar, Goodyear, Garware Poly, Balmer Invest and Asian Hotel (E) lost 5-8%.

About 1727 shares advanced as against 1151 shares declined on Bombay Stock Exchange.

(With inputs from Reuters)

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Nifty gains strength as food inflation eases

Equity benchmarks rallied further with one percent gain at 13:59 hours - the Nifty was inching up towards 5550 level, supported by financial, metal, auto, capital goods, select healthcare and technology companies' shares. Easing inflation was the trigger for markets today in afternoon trade.

Primary articles index rose 14.59% in the year to February 5 as compared to 16.24% in previous week. Food price index increased 11.05%, the lowest since the first week of December, versus 13.07% in previous week. However, fuel group inflation rose 11.92% as compared to 11.61% (WoW).

Aditi Nayar, Economist of ICRA said the decline in food inflation was led by a continued correction in vegetable prices. However, this was offset to an extent by an increase in the prices of pulses, non-vegetarian protein items, fruits and condiments.

"While wholesale prices of vegetables may ease further in the coming weeks, prices of other food items are likely to remain sticky and average food inflation may remain in the low double-digits in February 2011," she said.

The 30-share BSE Sensex was trading at 18,491, up 191 points and the 50-share NSE Nifty went up 59 points to 5,541. The broader indices too gained one percent.

Ambreesh Baliga of Karvy Stock Broking feels that it is good for the markets if they are consolidating before the next move. "I see Nifty in the 5,500-5,600 band, and over the next couple of days we could touch those levels of closer to 5,600." He quickly added that we cannot rule out the panic in the markets, however, assuming that there is no other adverse news on scam or other front; the markets should be in the range closer to 5,500-5,600, at least before budget.

HDFC Bank and HDFC were the leaders on Nifty with 3.5-4% gain. ICICI Bank and Axis Bank were up nearly 1.5%. PNB and SBI gained 0.6% each.

L&T and BHEL from capital goods space moved up 2% .SAIL and Tata Steel from metal segment climbed 1.8% each. Sterlite, Sesa Goa and JSPL were up 0.7-1.2%.

Among other largecaps - Bharti Airtel and TCS jumped 1-2%. Heavyweight Reliance Industries rose 0.4%.

However, the sell-off continued in ONGC, Wipro, HUL, Reliance Power, NTPC, Cipla, HCL Tech and Reliance Capital.

About 1737 shares advanced as against 1011 shares declined on Bombay Stock Exchange.

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Nifty above 5500; financials, metals, infra up

The benchmark Nifty strengthened in afternoon trade today after a consolidation seen since Tuesday and started trading above the 5500-mark amid a choppy trade. Financial, metal, capital goods, healthcare, telecom, realty, select auto and technology companies' shares were quite supportive for the markets.

Abhijit Chakraborty, Fortune Financial said that pre-budget rally might take the Nifty to 5,600 and beyond.

He explained that people are still waiting for clarity before rushing to buy. However, Chakraborty does not see the budget to be a game changer.

However, there was a bit of selling pressure at higher levels due to downtrend in ONGC, Wipro, NTPC, ITC, Tata Power and Reliance Power.

The 30-share BSE Sensex was trading at 18,423, up 123 points and the 50-share NSE Nifty jumped 42 points to 5,422. Even the broader indices jumped one percent as about 900 shares advanced as against 375 shares declined on National Stock Exchange.

India's food inflation eased to a two-month low in early February on moderating prices of onions and other vegetables, amid expectations the government may announce fresh measures to boost productivity for key staples in the upcoming budget.

India's food price index rose 11.05%, the lowest reading since the first week of December, and the fuel price index climbed 11.92% in the year to February 5, government data on Thursday showed. Primary articles index increased 14.59% as against 16.24% on week-on-week basis.

"I expect by the end of March the food inflation could come down to around 8% due to arrival of foodgrains in some pockets and cooling of the speculation component in the commodity markets," said NR Bhanumurthy, an economist at the National Institute of Public Finance and Policy, a Delhi-based think-tank.

Among frontliners, HDFC Bank, HDFC, Bharti Airtel, Bajaj Auto, Sterlite Industries, IDFC, Ambuja Cements and Sun Pharma rallied 1.5-4%.

In midcap space, Manappuram, Techno Electric, Sobha Developer, Cox & Kings and Patel Engg jumped 6.5-17% while Jubilant Life, KGN Industries, Tecpro Systems, Bajaj Corp and Pidilite Inds lost 2-8%.

In smallcap space, Zee Learn, HBL Power, Nitesh Estates, Entegra and Everonn Education gained 9-14%. However, Sahara One, R M Mohite, India Securities, Garware Poly and Ontrack Systems fell 5-7%.

(With inputs from Reuters)

Nifty hits 5500 amid volatility; HDFC leads

The benchmark Nifty touched the 5500-mark amid a choppy trade at 11:47 hours, supported by metal, financial (barring ICICI Bank), telecom, healthcare and select technology companies' shares. Bharti Airtel was too on buyers' radar, with gain of 1.5%.

Experts feel that the market may slightly pickup  in the run up to the budget. Abhijit Chakraborty, Fortune Financial said that pre-budget rally might take the Nifty to 5,600 and beyond.

He explained that people are still waiting for clarity before rushing to buy. However, Chakraborty does not see the budget to be a game changer.

Even the market breadth improved - about 833 shares advanced as against 420 shares declined on National Stock Exchange. However, the sell-off in ONGC, NTPC, ICICI Bank, ITC, Wipro, Reliance Industries, HUL, Tata Motors, Tata Power, M&M and Maruti has limited the gains to major extent.

The 30-share BSE Sensex was trading at 18,342, up 42 points and the 50-share NSE Nifty went up 18 points to 5,499. The BSE Midcap and Smallcap indices gained close to one percent each.

HDFC, HDFC Bank and IDFC from financial space rallied 2-3%. SBI, Kotak Mahindra Bank and Axis Bank gained more than half a percent while ICICI Bank was marginally in red.

SAIL, Sterlite and Tata Steel from metal segment jumped 1-2%. Hindalco and Sesa Goa were up 0.6% each. Sun Pharma from healthcare space surged 3%; Dr Reddy's Labs, Ranbaxy and Cipla gained 0.2-0.7%.

In midcap space, Manappuram, Sobha Developer, Techno Elect, ARSS Infra and SpiceJet shot up 5-11%.

However, Jubilant Life, KGN Industries, Tecpro Systems, Simplex Infra and AstraZeneca declined 2-8%.

In smallcap space, HBL Power, Zee Learn, Entegra, Everonn Education and Rohit Ferro Tech jumped 8-12%.

However, Sahara One, R M Mohite, India Securities, Asian Hotel (E) and Ontrack Systems slipped 5-7%.

Sensex consolidates; ONGC, Wipro, ITC dip

Indian equity benchmarks were quiet in trade and were completely directionless, which could be ahead of budget and expiry for the month of February. Oil & gas, infrastructure, FMCG, auto and Anil Dhirubhai Ambani Group companies' shares were witnessing selling pressure. Wipro and ICICI Bank too were down.

Ambreesh Baliga of Karvy Stock Broking feels that it is good for the markets if they are consolidating before the next move. "I see Nifty in the 5,500-5,600 band, and over the next couple of days we could touch those levels of closer to 5,600." He quickly added that we cannot rule out the panic in the markets, however, assuming that there is no other adverse news on scam or other front; the markets should be in the range closer to 5,500-5,600, at least before budget.

On the positive side, metal, realty, healthcare and financial (barring ICICI Bank) companies' shares were quite supportive to the markets. Bharti Airtel and Infosys too were up.

The 30-share BSE Sensex was trading at 18,301, with just one point gain and the 50-share NSE Nifty roset 3 points to 5,484 amid a tight range.

Among frontliners, Bharti Airtel, HDFC Bank, HDFC, Bajaj Auto, Tata Steel, SAIL, IDFC, Suzlon Energy and Ambuja Cements gained 1-2%.

SAIL climbed 2% as the fluctuating markets may further delay the launch of state-run SAIL's follow-on public offer. The issue, which was scheduled to release this March, may now be launched only in the first week of April, reports CNBC TV18 quoting sources.

However, ICICI Bank, Wipro, M&M, ONGC, Jaiprakash Associates, Cairn India, GAIL, Kotak Mahindra Bank and ITC fell 0.6-1.6%.

BF Utilities, Everonn Education, Tata Steel, SBI, A2Z Maintenance, ICICI Bank and Unitech were the most active shares on exchanges.

Everonn Education is going to partner with Microsoft for first academy service in India. The stock rallied 9%.

In midcap space, Sobha Developer, Manappuram, BF Utilities, ARSS Infra (Bags order worth Rs 104 crore from Assam Govt) and Money Matters rallied 5-9% while Jubilant Life, KGN Industries, Bajaj Corp, Mahindra Life and AstraZeneca lost 2.5-8%.

In smallcap space, HBL Power, Graviss Hosp, Zee Learn and Piramal Glass went up 8-12%. However, Sahara One, R M Mohite, India Securities, Rossell Tea and Ontrack Systems slipped 5-8%.

About 1448 shares advanced as against 871 shares declined on the Bombay Stock Exchange.

Nifty remains flat; Bharti, SAIL, HDFC gain

The benchmark Nifty was quiet for the second consecutive session today and was gyrating around previous closing value. Oil & gas, infrastructure, ADAG and FMCG companies' shares were down while metal, select financial and technology shares were trading higher.

Anil Ambani met CBI yesterday to clarify on 2G issue. Reliance Communications, Reliance Capital, Reliance Power and Reliance Infrastructure were down 1-2%.

Among other frontliners, Jaiprakash Associates, Tata Motors, ICICI Bank, BHEL, ONGC, ITC and L&T were witnessing selling pressure.

However, Axis Bank, IDFC, Tata Steel, Infosys and TCS were on buyers' radar.

At 9:17 hours IST, the 30-share BSE Sensex was trading at 18,290, down 10 points and the 50-share NSE Nifty fell just 3 points to 5,478.

However, breadth was positive - about 460 shares advanced as against 310 shares declined on National Stock Exchange.

Mahindra Satyam rallied 4% as the company settled class action law suit for USD 125 million.

Ackruti City, Zee Learn, WWIL and Thomas Cook (ahead of numbers) were up 4-6%.

UCO Bank gained 2% as GOI will infuse Rs 940 crore via preferential allotment in tier 1 capital.

3i Infotech, Delta Corp, Praj Industries, Triveni Engg and Shree Renuka were up 1-2%.

Koutons surged 5% on corporate debt restructuring news.

However, Unitech, HDIL and IRB Infra were down 0.5-1%.

Asian markets were trading lower. Shanghai, Hang Seng, Straits Times, Kospi and Taiwan were marginally down.

The US markets gained marginally higher amid FOMC minutes and economic news on Wednesday.

Federal Reserve raised its economic forecast and noted that risks to GDP growth have diminished and lowered outlook for core inflation to 1.25% for 2012.

F&O cues:

Total Nifty futures up Rs 1,282 crore, Options up Rs 1,988 crore

Stock futures net add 2.85 crore shares in Open Int

Nifty Fut Open Int net add 3.3 lakh shares in Open Int; Nifty futures prem at 3 pts versus disc at 5 pts

Nifty Open Int PCR up at 1.22 versus 1.17

Nifty Put add 37.2 lakh shares, Call shed 5.4 lakh shares in Open Int

Highest Open Int outstanding at 5400 Put, 5300 Put (from 5600 call), 5600 call

Nifty 5300 Put adds 17.3 lakh shares (21%) in Open Int; prem down from 20.7 to 16.1

Nifty 5400 Put add 7 lakh shares (7%) in Open Int, prem down from 40.3 to 32

Nifty 5500 Put add 6.8 lakh shares (10%) in Open Int, prem down from 72 to 65

Nifty Mar 5400 Put add 2.6 lakh shares (7%) in Open Int, prem down from 126 to 120

Nifty Mar 5500 Put add 2.3 lakh shares (15%) in Open Int

Nifty 5200 Call shed 2.7 lakh shares (12%) in Open Int

Nifty 5300 Call shed 2.7 lakh shares (8%) in Open Int