Nifty closes above 5000 on better-than-expected Q2 GDP data

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Sensex above 17000 as Asia extends rally, Bharti up 4%

At 13.06 hrs IST, further buying in heavyweights helped the Sensex to come back above the 17,000 mark and the Nifty above 5,050 level. Better-than-expected Q2 GDP (gross domestice product) numbers strengthened the markets. On the global front, Asian markets also extended rally; Shanghai, Nikkei and Hang Seng shot up 3-3.5%. Kospi, Jakarta and Taiwan Weighted went up 1-2%. However, Straits Times fell 1.7%.

India's GDP grew at 7.9% in the second quarter as compared to 6.1% quarter-on-quarter and 7.7% year-on-year. For the first-half of the year, GDP growth stood at 7% as against 7.8% YoY.

The Sensex was up 385.18 points or 2.32% at 17017.19, and the Nifty was up 120.90 points or 2.45% at 5062.65. About 2134 shares have advanced, 739 shares declined, and 560 shares were unchanged.

According to sources, Indiabulls Power's 1320 MW Amravati Project achieved financial closure. The stock was up 0.8% and its holding company Indiabulls Real gained 4%.

Glenmark Pharma expects to list Glenmark Generics by FY10-end. The company is in talks with 2 companies for potential R&D deal and expects 1 R&D deal to materialise by year-end. However, the stock was down nearly 3%, as MSCI removed the stock from India Index.

Top gainers on the BSE Midcap: Thomas Cook, GMDC, AIA Engineering, IBN18 Broadcast and Mcleod Russel were up 6-12%.

Top losers on the BSE Midcap: Shriram City, Glenmark, Emami, Apollo Hospital and Carborundum were down 1-4%.

Top gainers on the BSE Smallcap: Cambridge Solution, Resurgere Mines, Mahindra Forging, VIP Industries and Shrenuj and Co were up 10-18%.

Top losers on the BSE Smallcap: PVP Ventures, Advani Hotels, Jindal Worldwide, Orissa Sponge and EIH Associated Hotel were down 2-3%.

Q2 GDP pushes mkts higher; all sectoral indices in green

At 12:18 hours IST, buying across all the sectors and better-than-expected growth in Q2 GDP (gross domestic product) numbers pushed the Nifty over 100 points higher and the Sensex over 300 points. Metal, technology, auto, capital goods and oil & gas were the leading sectors.

India's GDP came in at 7.9% in the second quarter as compared to 6.1% quarter-on-quarter and 7.7% year-on-year. For the first-half of the year, GDP growth stood at 7% as against 7.8% YoY.

Farm sector growth came in at 0.9% versus 2.7% YoY. Manufacturing grew 9.2% as against 5.1% YoY. The mining space posted the highest growth at 9.5% as compared to 3.7% YoY, while construction saw degrowth at 6.5% versus 9.6% YoY.

Keki Mistry, MD, HDFC Bank, and MD Mallya, CMD, Bank of Baroda, see full year GDP at over 6.5%. Adi Godrej, CMD, Godrej Group, sees it crossing 7% for the entire year.

Rajeev Malik of Macquarie Capital Securities expects 8% GDP growth in FY11. Godrej is more optimistic. He expects it to cross the 9% mark.

The 30-share BSE Sensex was trading at 16,958, up 326 points and the Nifty was at 5,044, up 102 points. The broader indices were up around 2%, as about 2,096 shares advanced while 760 shares declined on the BSE. Nearly 577 shares were unchanged.

Larsen and Toubro is all set to ink a joint venture agreement with the Nuclear Power Corporation of India for setting up a Rs 2,000-crore project to make forgings for nuclear power plants. The stock was up 2%.

VS Gadhvi, Managing Director of Gujarat Mineral Development Corporation (GMDC) sees growth doubling by the end of next financial year. He believes there are no caveats to the mining policy, and says, "The Gujarat government has put the entire mining policy on fast track." The stock was up nearly 10%.

In the largecaps, Suzlon Energy, Hindalco, Tata Motors, Tata Steel, Sterlite Industries and Bharti Airtel rallied 4-5%. However, only Power Grid Corporation lost 2% as MSCI removed the stock from India Index. Heavyweight SBI was flat.

In the midcap space, Thomas Cook was up 11.67%. GMDC, IBN18 Broadcast, HDIL and Wockhardt gained 5.5-9% while Shriram City fell 4%. Glenmark was down 2.85% and Nagarjuna Construction down 1.46%. Emami and ING Vysya Bank slipped 0.8-1%.

In the smallcap space, Cambridge Solutions shot up nearly 20%. Resurgere Mines, Ganesh Housing, Infotech Enterprises and Atlanta were up 7-13%. However, PVP Ventures, Jindal Worldwide, Zodiac Clothing, Advani Hotels and EIH Associated Hotel declined 2-4.5%.

Tata Steel, SBI, HDIL, Suzlon Energy, Thinksoft and ICICI Bank were most active shares on the bourses.

Q2 GDP nos lift Sensex over 300 pts; metals, realty gain

At 11:11 hours IST, the Nifty rallied further post better-than-expected Q2 GDP (gross domestic product) numbers. The benchmark indices jumped nearly 1.9% each as GDP for the second quarter came in at 7.9% as against 6.1% in previous quarter and 7.7% in same quarter of last year. Earlier, CNBC-TV18 was expecting at 6.3%.

April-September GDP growth was at 7% as against 7.8% YoY (on year-on-year basis). Mining sector growth increased at 9.5% versus 3.7% and manufacturing sector growth was at 9.2% versus 5.1% while construction growth slipped to 6.5% versus 9.6% and Farm sector growth was at 0.9% versus 2.7% (YoY).

Buying was seen across all the sectors; the BSE Metal, Realty, Auto, Capital Goods and Bank indices gained 1.5-3%. Other sectoral indices went up over 1%. However, only Power Grid Corporation was down nearly 2%, as MSCI removed the stock from MSCI India Index.

The Sensex was up 303 points at 16,935 and the Nifty gained 92 points at 5,033. About 1085 shares advanced while 135 shares declined on the NSE.

Cairn India, ONGC, Reliance Industries and GAIL were up 1-2% in the oil & gas space. BPCL and HPCL were marginally up.

Banking stocks like Kotak Mahindra, ICICI Bank and Union Bank gained 2-3.7%. PNB was up 1.31% and HDFC Bank up 0.66%. SBI and Bank of Baroda increased 0.35% each.

In the metal space, NMDC, Hindustan Zinc, JSW Steel, Hindalco, Sterlite Industries, Tata Steel and Jindal Saw were up 3-5%. Gujarat NRE Coke, Sesa Goa, NALCO, SAIL and Jindal Steel moved up 1-2.5%.

In the capital goods segment, Suzlon Energy shot up 3.58% as MSCI added the stock in its MSCI India Index. Siemens, L&T, ABB, BHEL and Punj Lloyd were up 1-2%.

HDIL surged 4.82% as MSCI included the stock in the MSCI India Index. Indiabulls Real, DLF and Unitech went up 2.2-3.8% in the realty space.

In the midcap space, GMDC, Thomas Cook, Wockhardt, Shriram City and Spice Communications gained 5-9.4% while Glenmark lost 2.8% as MSCI removed the stock from its India Index. Nagarjuna Construction, Omaxe, Emami and ING Vysya Bank went down 0.9-1.4%.

In the smallcap space, Resurgere Mines, Cambridge Solutions, Atlanta, Ganesh Housing and Goodricke Group were up 7-12% while Zodiac Clothing, Ushdev International, Advani Hotels, Lloyds Metals and Orissa Sponge lost 2-4.6%.

Nifty bounces back above 5000 on positive Asian cues

The Sensex bounced back smartly on the back of positive Asian cues.  Investors believe that Dubai is an isolated event and exposure of Indian companies to Dubai is limited. All markets recovered from their day's low post Abu Dhabi comments, which said that it would help Dubai on case to case basis.

The Nifty got back above the 5,000 mark and the Sensex too is seen inching towards 17,000. At 9:56 am, the former one was trading at 5,019, up 77 points while the later one was trading at 16,888, up 256 points. The CNX Midcap was up 106 points at 7,143. About 671 shares advanced while 61 shares declined on the NSE.

Suzlon Energy was up 4%, as the company's arm REpower received order for up to 954 MW. It also included in the MSCI India Index.

Tata Motros gained 3% post second quarter numbers.

Among the frontliners, Jaiprakash Associates, Reliance Industries, HDFC, ICICI Bank, L&T, Sterlite, DLF, Unitech, Ranbaxy Labs, Cairn, Jindal Steel and Tata Steel were biggest gainers in early trade.

However, defensive stocks like ITC and HUL were in the red.

Midcap space:

Wockhardt gained 9% as according to sources, Wockhardt-DBS reached out of court settlement in CDR (corporate debt restructuring) case.

In the realty space, HDIL, Orbit Corporation and Indiabulls Real were up 2-4%.

Midcap technology companies like KPIT Cummins, Rolta and Mahindra Satyam gained 1-3%.

Gujarat NRE Coke and Sesa Goa were also up 2-3%.

However, Power Grid was down over 1.5% as MSCI removed from MSCI India Index.

Global cues:

Asian markets bounced back. Shanghai, Nikkei, Hang Seng and Kospi gained 2.5-3.2%. Taiwan Weighted was up 1.5% and Jakarta up 0.6%. SGX Nifty rose 1%. However, Straits Times fell 2%.

The US markets fell on the back of credit troubles in Dubai during shortened session of trade. The Dow Jones Industrial Average ended down 155 points or 1.5% at 10,310. The Nasdaq Composite fell 37.6 points at 2,138. The S&P 500 Index lost 19 points at 1,091.5.

Commodities

CRB Commodity Index ended down 2% on Friday. It was trading down 4% in early trade.

Crude ended down 2.8% at $76/bbl. It was trading down 6% in early trade.

Gold fell more than $12 at $1,174/ounce.

Baltic Dry Index was down 3.5%.

Market cues:

-FIIs net buy USD 66.1 million in cash on November 26
-MFs net sell Rs 257 crore in cash on November 26
-Total F&O Open Int up by Rs 4,687 crore to Rs 84,297 crore
-FIIs net sell Rs 1057 crore in cash on November 27 (prov)
-DIIs net buy Rs 700 crore in cash on November 27 (prov)
-FIIs net sell Rs 158 crore in F&O on November 27

F&O cues:

-Nifty down 1.3%, Futures Open Int up 5%
-Total Futures Open Int up by Rs 866 crore, Total Options Open Int up by Rs 3820 crore
-Nifty IVs at at 26-30% levels
-Nifty Open Int PCR up from 1.26 to 1.33
-Nifty Dec futures trading at 5 pt premium versus 13 pt discount
-Nifty Calls add 19.7 lakh shares in Open Int, Nifty Puts adds 50.3 lakh shares in Open Int
-Nifty Dec 4800 Put Adds 10.3 lakh shares in Open Int
-Nifty Dec 4700 Put Adds 9.6 lakh shares in Open Int
-Nifty Dec 5000 Call Adds 8 lakh shares in Open Int
-Nifty Dec 4900 Call Adds 6.1 lakh shares in Open Int
-Stock futures add 1.84 crore shares in Open Int