Nifty holds morning gains; Reliance Infra tops buy list

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The market continues to trade higher despite volatility. Much of it can be attributed to positive Asian markets, which are expecting a positive outcome from Greece today.

Technology, metals, capital goods and banks (barring ICICI Bank) helped the market stay higher. The Sensex was up 113 points at 17,735.87 and the Nifty rose 40 points to 5,374.95.

Robert Prior-Wandesforde, head of India & South East Asia economics at Credit Suisse feels that right now India is in a sweet spot. "Nonetheless, most of the bad news should be in the price as far the economy is concerned," he says.

Shares of Jindal Steel, Hindalco, DLF, Coal India, GAIL, Reliance Infrastructure, Sesa Goa, Reliance Power and IDFC were biggest gainers among largecaps, rising 2-4%.

Reliance Industries, Infosys, HDFC, TCS, HDFC Bank, SBI, HUL and L&T advanced 0.7-1.5%.

However, Bharti Airtel crashed 5.65% after its bottomline was hit by higher interest and tax cost. ICICI Bank, ONGC and ITC were down 1-1.5%.

In the midcap space, Manappuram Finance bounced back today, rising 7% (stock had locked at 20% lower circuit yesterday). HMT, HDIL, IFCI and Indiabulls Real rose 7%. However, Responsive Industries, KSK Energy Ventures, Muthoot Finance, M&M Financial and Jet Airways fell 2.5-9%.

Smallcap stocks like Gati, Nilkamal, Jagatjit Industries, Ruby Mills and Sabero Organics shot up 10-20% while KGN Enterprises, Commercial Engg, ARSS Infra, Sahara One and Midvalley Entertainment slipped 5%.

Advancing shares outnumbered declining by 1693 to 936 on the BSE.

At 11:43 hours IST : Sensex maintains uptrend; Asian cues positive

The Nifty was inching up towards the 5400 mark, led by all major largecaps barring ONGC, Bharti and ICICI Bank. Asian markets too extended gains - Shanghai, Hang Seng, Nikkei, Kospi and Taiwan rose 1-2%. Back home, the BSE benchmark was up 135 points at 17,757.19 and the NSE benchmark rose 44 points to 5,379.20.

Michael Kurtz of Nomura feels India continues to outperform the region, with volumes showing a strong recovery. "With liquidity risks in Europe and hard-landing risks in China continuing to recede, fundamentals are boosting Asia-Pacific equity multiples," he says.

Major largecaps like Reliance Industries, Infosys, HDFC, HDFC Bank, SBI, L&T, BHEL and Wipro gained 1-2%.

Shares of biggest software services exporter TCS too rose 2% after the company with Mitsubishi set up IT services joint venture.

Metal stocks moved up further - Jindal Steel and Hindalco shot up over 3%. Tata Steel, Sterlite Industries and Coal India rose 1.6-2%.

However, Bharti Airtel retained its top position in the selling list, falling 5.4% post dismal performance in its bottomline. ONGC and ICICI Bank were down over 1%.

The broader markets outperformed benchmarks - the BSE Midcap and Smallcap indices were up 1.3%.

In the second line shares, HMT, HDIL, Bank of Maharashtra, Indiabulls Real and Chambal Fertiliser gained 6-7.5%.