Nifty approaches 5600 again; ONGC, SBI, Tata Steel lead

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Notwithstanding volatility, Indian market continued to trade higher with support from oil & gas, capital goods, FMCG, banks and metals stocks. However, the upside was somewhat capped by a fall in technology stocks. 

The Nifty was trading 30.20 points higher at 5,594.50, after hitting the 5600 mark in opening trade. Meanwhile, the Sensex rose 96 points to 18,385.54.

Punita Kumar Sinha, managing partner of Pacific Paradigm Advisors expects equities to inch higher from these levels. "While there maybe some sort of short-term consolidation because the markets have run-up a lot, but the trend generally seems to be still positive for equities," she asserted in an interview to CNBC-TV18.

Shares of ONGC and BHEL topped the buying list, rising 4% each. Among majors, SBI rose 1.7% and Tata Steel gained 3%. ITC, ICICI Bank, L&T and NTPC were up over 0.5%.

Hindalco, Jindal Steel, Tata Power, Hero Motocorp, Sterlite and DLF moved up 1-2%.

However, shares of TCS underperformed other largecaps, falling 1.5%. Infosys, Tata Motors, HDFC Bank, Wipro, GAIL and Maruti were down 0.4-0.9%.

The broader markets outperformed benchmarks - the BSE Midcap Index was up 0.7% and Smallcap up 1%. Nearly two shares gained for every share falling on the BSE.

Euro zone finance ministers sealed a second bailout for debt-laden Greece. Punita Kumar Sinha says, the bailout clearance is already discounted by the markets. Asian markets as well as European markets ended higher yesterday. Indian and US markets were shut yesterday, so the effect of the deal on Indian markets is reflecting today while Asian markets were down half a percent.

At 9:19 hours IST : Sensex gains on Greek bailout plan, BHEL rises 3%

The Sensex opened flat on Tuesday to make a swift upward move as news of a Greek bailout package renewed hopes among investors. The Sensex was trading 87 points up at 18,375.94 and the Nifty was gaining grounds with a 26 point upmove to 5,590.25.

Among frontliners, Hindalco, Tata Steel, SAIL, Cairn India, SBI, ITC, and ONGC.  BHEL rose 3% on The Hindu Business Line reports that 19% import duty is likely on power equipment for mega projects.

However, TCS, Infosys, Bharti Airtel, BPCL (brent cure) and Jaiprakash Associates were under pressure.

The CNX Midcap went up 36 points to 7,961. About three shares advanced for every share falling on the National Stock Exchange.

In the second line shares, Kingfisher Airlines tanked 18% as company's bank accounts have been frozen suddenly.

Essar Oil was down 4.5% as company reported net loss of Rs 3,986 crore in Q3FY12 versus profit of Rs 273 crore YoY. There was an exceptional loss of Rs 4,015 crore on sales tax benefit reversal in the quarter.

However, power equipment manufacturers' stocks gained on likely import duty. BGR Energy Systems and Gammon Infra were up 2.5%. Bharat Forge rose 0.5%. Lanco Infratech shot up 6%.

Firstsource surged 13%. Jet Airways gained 2.5% on cut in aviation turbine fuel prices.

IVRCL and Petronet LNG were up 2%.