Mkts sceptical about Economic Survey promises, end flat

ALSO READ See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows See how Global Markets are trading Indian ADRs Nifty BSE | NSE 29/05/12 Are Mutual Funds betting on Nifty?

Nifty tests 4300 on Eco Survey, weak European cues

At 13:11 hours IST - the sell-off in capital goods, banking, technology, telecom, realty, auto and private power counters along with Reliance Industries, was putting pressure on the benchmark indices. Downtrend in European markets, which fell 1-1.8%, was also adding more pressure.

However, the volatility was not yet out, as on the other side, ONGC, GAIL, NTPC, HDFC, Tata Steel, Sterlite, Sun Pharma, Power Grid, Jindal Steel, Grasim, SAIL and Nalco were adding some choppiness.

The Sensex was down 108 points, to 14,537 and the Nifty lost 32 points, to 4,308. The broader indices were flat in trade. The Nifty July Futures were trading with 14 points discount.

The market breadth was a bit mixed; about 1416 shares advanced while 1313 shares declined on the BSE. Nearly 427 shares were unchanged.

Reliance Industries, Bharti Airtel, BHEL, SBI, Reliance Communication, Infosys, L&T, ICICI Bank and HDFC Bank were negative contributors to the bourses.

Economic Survey fails to cheer mkts; RIL, Bharti, SBI dip

At 12:22 hours IST, the Economic Survey did not cheer the markets. Both the indices were choppy in trade and continued to hover around their previous closing values.

Huge buying was seen in ONGC and GAIL, both shot up 9% and 14%, respectively. Shares of oil marketing, metal, select pharma and power companies along with HDFC, ICICI Bank, were witnessing buying interest. However, volatility continued due to selling in capital goods, auto, banking (barring ICICI Bank), FMCG and major telecom stocks along with Reliance Industries.

The Sensex fell 27 points, to 14,618 and the Nifty declined 5 points, to 4,335. The BSE Midcap Index gained 0.9% and the Smallcap Index rose 1.6%. About 1632 shares advanced while 1048 shares declined on the BSE. Nearly 476 shares were unchanged.

The Economic Survey for the financial year 2009 was presented by Finance Minister Pranab Mukherjee in Parliament today. The focus was on reforms. Here are some of the highlights:
- Allowed 100% FDI in health, weather insurance.
- Raised the FDI limit for defence production companies to 40%
- It has also decontrolled the sugar and fertiliser industry
- Loss making public service undertakings to be auctioned

Inflation for the week ended June 20 stood at -1.3% vs -1.14% on week-on-week basis.

Mkts rangebound; oil & gas, metals, PSU power rise

At 11:39 hours IST, the benchmark indices were hovering at their previous closing values. Buying in metal, oil & gas and PSU power stocks was helping the markets to stay on the higher side.

However, selling in shares of technology, banking, capital goods, FMCG, realty, auto and major telecom companies was putting pressure on the benchmark indices.

The Nifty was up just 1 point, to 4,342 and the Sensex rose 7 points, to 14,652. Among the broader indices, the BSE Midcap Index was up 0.7% and the Smallcap Index gained 1.5%. The market breadth was positive; about 1632 shares advanced while 1048 shares declined on the BSE. Nearly 476 shares were unchanged.

The government announced a hike in fuel prices on Wednesday evening. Petrol prices were hiked by Rs 4 per litre while diesel prices were up by Rs 2 a litre. Kerosene and LPG prices were left untouched.

Commenting on this move, SV Narasimhan, Director-Finance, Indian Oil Corporation said that under-recoveries were manageable after the fuel price hike. IOC's burden would come down by Rs 750 crore per month post fuel price hike, he said. "Oil marketing companies (OMCs) may have to bear some share of subsidy," he added. IOC, HPCL and BPCL gained 1-2%.

In an interview with CNBC-TV18, Oil Secretary, RS Pandey said that only government would bear under-recovery on kerosene/LPG. "Upstream companies would not bear subsidy on cooking fuels while would bear only auto fuel subsidy", he added. Post this comments, ONGC and GAIL shot up 7% each.

Corporate News from CNBC-TV18

HDIL was flat. The company would issue 2.6 crore warrants to promoters at Rs 240/share, reports CNBC-TV18 quoting sources.

Punj Lloyd bagged order worth Rs 1,873 crore; the stock rose 2.5%.

ITI shot up 15.5% post the management comments. In an interview with CNBC-TV18, the management said they were in process of identifying consultant for joint venture. "Government will write off losses of Rs 2,820 crore and we will look at selling over 50% stake in 3 units," they said.

S Kumars Nationwide gained 2%, as the company' board approved Rs 1,000 crore QIP issue.

Mkts witness volatility; tech, banks, capital goods decline

At 10:41 hours IST, the markets were trading with extreme volatility. Metal, oil & gas (barring Reliance Industries), pharma stocks along with HDFC, NTPC and Idea were seeing buying interest.

However, shares of capital goods, banking, FMCG, private power and technology companies were putting pressure on the markets.

Nilesh Shah, Envision Capital expected the consolidation to continue with the Nifty ranged between 4250-4600.

The Sensex was down 38 points, to 14,605 and the Nifty fell 13 points, to 4,328. Among the broader indices, the BSE Midcap Index was up 0.7% and the Smallcap Index gained 1.3%.

The market breadth was marginally positive; about 1424 shares advanced while 1213 shares declined. Nearly 519 shares were unchanged.

Top gainers - ONGC was at Rs 1,088, up 3.36%; Sun Pharma was at Rs 1,150.30, up 2.86%; Jaiprakash Associates was at Rs 212.70, up 2.01%; Tata Steel was at Rs 402.70, up 1.95%; Sterlite was at Rs 622.30, up 1.82%; GAIL was at Rs 296.95, up 3.16% and Ranbaxy Labs was at Rs 253.05, up 2.80%.

Top losers - Infosys was at Rs 1,773, down 1.32%; Maruti Suzuki was at Rs 1,057, down 1.23%; BHEL was at Rs 2,191, down 1.18%; TCS was at Rs 387.80, down 1.16%; Reliance Communication was at Rs 295.25, down 1.11%; ABB was at Rs 763.90, down 2.08%; Tata Motors was at Rs 294.35, down 1.77% and HCL Tech was at Rs 187.10, down 1.53%.

In the midcap space, MRF, Anant Raj Industries, IRB Infra, Jai Corp and Havells India gained 5-7.6% while Rei Agro, Jagran Prakashan, Motilal Oswal, Advanta and Godrej Industries fell 2.6-7%.

In the smallcap space, English India, ITI, Swan Mills, Ahluwalia and Prism Cement were up 8.5-13.7% while Suashish Diamon, Karma Ispat, Money Matters, Sundaram-Clayton and Religare Techn lost 5-17.5%.

Educomp Solutions, Jagran Prakashan, NIIT, Reliance Capital, Reliance Industries, ONGC, Unitech and Tata Steel were the most active shares on the bourses.

Mkts choppy in early trade; ONGC, oil mkting cos surge

The benchmark indices started the day on a positive note led by ONGC and shares of oil marketing companies. But they immediately turned volatile. Education stocks continued to gain.

At 9:56 am, the Nifty was down just 2 points, to 4,338 while the Sensex was up 8 points, to 14,654. The CNX Midcap went up 24 points, to 5,498. About 376 shares advanced while 278 shares declined on the NSE.

Among the frontliners, ONGC (gained 5%), BPCL, HPCL, IOC, Power Grid, GAIL, Tata Steel, Tata Communication, Jindal Steel, Sterlite, Ranbaxy and Sun Pharma were the gainers.

However, TCS, Tata Motors, DLF, Tata Power, Siemens India, Reliance Power, Unitech, Suzlon and Maruti lost ground.

The government hiked petrol prices by Rs 4/litre and diesel by Rs 2/litre on Wednesday. ONGC, HPCL, IOC, BPCL and GAIL gained 2.5-5%.

Midcap space

Education stocks like NIIT, Aptech, Navneet Publications and Educomp Solutions were up over 2%. Educomp Solutions July futures were trading with 138 points discount.

Bajaj Hindusthan was flat; the company raised Rs 723 crore via QIP (qualified institutional placement).

Mahindra Satyam was up 1%. However, Bajaj Holdings was down over 2%. Jagran Prakashan fell 2.6%.

Global cues:

Asian markets were mixed in trade. Shanghai, Hang Seng, Jakarta and Taiwan Weighted gained 0.6-1%. However, Straits Times and Kospi fell 0.4% each. Nikkei was flat.

The US markets gained on the back of reassuring manufacturing data from China, Europe and the US.

The Dow Jones Industrial Average rose 57 points at 8,504. The S&P 500 Index was up 4 points at 923.3 and the Nasdaq went up 10.7 points to 1,845.7.

Commodities:

The CRB (Commodity Research Bureau) Index gained 0.8%. Gauge of six metals in London jumped 3% yesterday.

Crude was up 0.8% at $69.31 a barrel. Gold went up 1.5% to $941.3/ounce.

Base metals gained on strong China auto sales, manufacturing data.

Copper was up 2.4%. Lead and Zinc gained 3%, and Aluminium was up 2%.

Nickel went up 7.3% at $1645 a tonne, at 9-month highs.

Nickel has gained 65% in Q2, outperforming other base metals.

Raw sugar made fresh 3-year high at 18.01 cents a pound.

Market cues:

-FIIs net buy USD 47.8 million on June 30
-MFs net sell Rs 280 crore on June 30
-Total F&O Open Interest up by Rs 2773 crore to Rs 60658 crore
-FIIs net buy Rs 185 crore in cash on July 1 (prov)
-DIIs net sell Rs 76 crore in cash on July 1 (prov)
-FIIs net buy Rs 52 crore in F&O

F&O cues:

-Total Futures Open Interest up by Rs 1100 crore, total Options Open Interest up by Rs 1672 crore
-Nifty up 1.2%, Nifty Futures Open Interest up 2%
-Nifty IVs at 41-44% levels
-Nifty Put Call Ratio constant at 0.92 from 0.91
-Nifty July Futures trading at 3-pt discount
-Nifty Calls Add 14.9 lakh shares in Open Interest, Nifty Puts Add 17.6 lakh shares in Open Interest
-Nifty 3900 Put adds 4.6 lakh shares in Open Interest
-Nifty 4700 Call adds 2.5 lakh shares in Open Interest
-Nifty 3800 Put adds 2.3 lakh shares in Open Interest
-Nifty 4300 Put adds 2.2 lakh shares in Open Interest
-Nifty 4400 Call adds  2.2 lakh shares in Open Interest
-Stock Futures add 1.5 cr shares in Open Interest