Nifty holds 6050; metals, realty, oil&gas up

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At 11:58 hours IST - the 50-share NSE Nifty was holding above 6050 level since beginnning of trade today. Oil & gas, metal, capital goods, power, realty, auto, cement and select financial companies' shares were supporting the markets. On the filp side, HDFC Bank, HUL, HDFC, HCL Tech and Suzlon Energy were the only losers on Nifty.

The Nifty September futures were trading at 17 points premium and the Nifty October futures already touched 6100 level, which were trading at 32 points premium.

Foreign institutional investors have been leading this rally as Indian markets witnessed highest-ever monthly FIIs inflow in September. They were net buyers to the tune of around Rs 22,000 crore, including September 24's provisional data, in the month of September.

Indian rupee has been appreciating on FIIs' funds; it was trading at 45.05/USD, up 0.44%.

Pratik Gupta Head at Deutsche Equities (India) maintains a bullish outlook on the back of global liquidity, bulk of which is coming from US and European funds. "This will continue as we may see further quantitative easing from the Federal Reserve. Also, many fund houses are still discovering India as an investment option," he said.

Some of this liquidity, Gupta says will be absorbed by initial public offers and quantitative institutional placements.

He further goes on to say, "Inflation here is coming under control. Also, these have been one of the best monsoons in the country," however India is not alone in this rally, "many markets are nearing peak".

The Sensex was trading at 20205, up 160 points and the Nifty was at 6063, up 45 points. Breadth was positive; about 885 shares advanced while 379 shares declined on NSE.

In the oil & gas space, RIL and ONGC were trading 1.6% & 1.3% higher, respectively. Cairn, GAIL and BPCL were up 0.7-1%. BHEL and L&T from capital goods space went up 0.7% each; ABB rose 3.3%.

The BSE Metal Index rallied 2%; Tata Steel, Sterlite and Hindalco jumped 2-3%; SAIL and Jindal Steel gained 1% each. ACC and Ambuja Cements were up 1% each.

DLF and Unitech from realty segment moved up 1.5-2%. In financial space, SBI, Kotak Mahindra Bank and PNB were up 1.5-2%; ICICI Bank, Axis Bank and IDFC gained 0.65-0.9% while HDFC Bank was down 0.9% and HDFC down 0.26%.

The BSE Midcap and Smallcap indices were up 0.8% each.

Top percentage gainers - KLG Capital, Manjeera Construction and Vulcan Engineer surged 20% each. Syncom Healthcare, XL Telecom, Savera Ind and Man Infra rallied 14.5-19%.