Nifty hovers around 5100; auto, telecom, realty, SBI up

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At 11:01 hours IST, the Nifty was consolidating at its previous closing value as traders looked cautious post two-day rally. Shares of telecom, realty, auto and oil marketing companies were seeing buying interest, which capped the losses to some extent. SBI, Cipla and Wipro were the other gainers.

However, oil & gas exploration, private banking, FMCG, power, capital goods and select metal stocks were witnessing selling pressure.

The Sensex was up just 2 points at 17,182 while the Nifty fell 1 point to 5,102. The Nifty November future was trading with 4-5 points discount.

In the telecom space, Tata Communications and Bharti Airtel gained 2-2.5%. MTNL and Reliance Communications were up 1.4-1.8%. Idea Cellular was up 0.61% and Tata Teleservices up 0.38%.

Maruti Suzuki rose 3.5%. M&M, Hero Honda, Tata Motors and Bajaj Auto went up 1.5-2.8% in the auto space. Ashok Leyland was up 0.76%.

In the realty pack, Peninsula Land, Parsvnath and Omaxe were up 2-4.6%. Unitech, DLF, HDIL, Orbit Corporation, Mahindra Life, Ansal Properties and Indiabulls Real moved up 0.8-1.5%. The Department of Industrial Policy and Promotion (DIPP) has proposed the removal of the three-year lock-in for foreign direct investment (FDI) in realty, sources told CNBC-TV18.

Sandeep Bhatia, ED and Head of Sales of Kotak Institutional Equities expected consolidation in telecom space by 2010-end. He said ITC could outperform in short-term while the stock could see some headwinds around budget time. He also expected banks to report good growth in H2.

The market breadth was positive; about 1,653 shares advanced while 1,137 shares declined on the BSE. Nearly 643 shares were unchanged.

In the midcap space, Gujarat Flourochem, Videocon Industries, Piramal Health, Peninsula Land and Carborundum gained 4.5-6.5% while KGN Industries, Asian Star, GMDC, SKF India and Exide Industries slipped 2-5%.

In the smallcap space, Grindwell Norton shot up 20%. Tata Coffee, Hikal, Geodesic and Voltamp Transformers were up 7-13%. However, Lloyds Metals, Cambridge Solutions, MVL and Tata Sponge Iron declined 3.6-4%.

On the global front, Asian markets were mixed in trade. Shanghai and Taiwan Weighted were marginally in the green. However, Nikkei and Kospi declined 0.9% each. Hang Seng, Jakarta and Straits Times were modestly in the red.

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