Sensex ends 226 pts up on global cues; ONGC, GAIL spike

The BSE Sensex scaled higher for the third consecutive session on Tuesday, adding more than 650 points in three days. After looking at sharp spike in metals and oil & gas stocks, it seemed that investors made some serious buying into these stocks. Experts feel it is more of a liquidity driven rally rather than pre-Budget.

The BSE benchmark rose 225.95 points or 1.28%, to close at 17,813.62, supported by 25 components. Meanwhile, the NSE benchmark retained its 5400 level quite nicely; it climbed 69.95 points or 1.31% to 5,429.50.

Vineet Bhatnagar, MD, MF Global is expecting the Nifty to retest 5550-5600 soon as short positions have been covered and long additions is going to add once it crosses 5440.

The market is eyeing major events - Railway Budget on Wednesday, RBI's monetary policy review on Thursday and Union Budget on Friday.

Global markets were firm ahead of Federal Open Market Committee' meet today. Markets are eyeing indications of QE3 as well as comments on strength in US economic data. European markets like France's CAC, Germany's DAX and Britain's FTSE went up 1% each while Dow Jones futures gained 72 points. Asian markets too closed higher.

Back home, the BSE Metal and Oil & Gas indices were up 3% & 2.6%, respectively. Realty, Power and Capital Goods indices rose 1.5-2%.

Public sector undertakings gained after Finance Minister Pranab Mukherjee cut its divestment target to Rs 30,000 crore for FY13 and Rs 25,000 crore for FY14.

State-run Coal India rose 1.8% and BHEL moved up 2%. Oil & gas major ONGC 3.4% and gas supplier GAIL shot up 4.5%.

Index heavyweight and oil & gas producer Reliance Industries climbed 2.7%. Infosys, India's No. 2 software services exporter and HDFC, housing finance company went up 1.5% each.

Metals stocks hogged the limelight today. Sterlite Industries, SAIL, Sesa Goa and Jindal Steel were up 4-5% while Tata Steel and Hindalco moved up 2.5%.

Banks saw some selling pressure after S&P comments. "While the overall rating of Indian banks remains stable, the standalone credit profile of some banks could come under pressure," Geeta Chugh of S&P's says. According to her, credit growth may decline to 16-17% in FY13 and asset quality may remain weak. "We expect a sharp rise in restructured loans in FY12 and FY13," she says. SBI, which rallied nearly 2% in early trade, closed with 0.75% gains. ICICI Bank closed flat.

However, shares of Wipro fell 1.3% ahead of promoters selling stake in the company via offer for sale tomorrow. Azim Premji trust will sell 3.5 crore equity shares on March 14 and auction will be opened during 9 am to 1:30 pm.

M&M, Bajaj Auto and Tata Motors too were under pressure.

In the second line shares, Bombay Dyeing and Manappuram Finance shot up 14%. Godrej Industries, Lanco Infratech and Jet Airways were up 7.6-10%. However, Kingfisher Airlines lost 3% amid huge volumes after flights disruption problems.

Shares of Biocon tumbled 6% amid heavy volumes after the Pfizer-Biocon alliance called off due to individual priorities.

The broader markets closed 1% higher. Advancing shares outnumbered declining by 1710 to 1203 on the BSE.

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At 15:12 hours IST: Sensex near day's high; Manappuram, Bombay Dyeing up 15%

The BSE Sensex was trading near day's high due to consistent buying in major sectors like oil & gas, metals, banks and capital goods. Even global markets were up ahead of Federal Reserve meet today; European markets gained 0.5-0.8%.

State-run and index heavyweight ONGC rose 3.5% while rival Reliance Industries gained 2.7%.

Shares of Jindal Steel, Sterlite Industries and GAIL were top gainers among largecaps, shooting up 4-5%.

The BSE benchmark was up 228 points at 17,815.77. The NSE benchmark continued to hold 5400 level, which rose 70 points to 5,429.15.

In the second line shares, Manappuram Finance shot up 15% and SKS Microfinance was up 10%. IRB Infra and PTC India surged 5% each. Crompton Greaves, Cox & Kings and Aban offshore were up 7% each.

Jet Airways gained 7% after company clarified on payment schedule. Company said payment schedule mutually worked out with tax department. "We will pay balance Rs 35 crore to Tax department on March 15." it added.

Bombay Dyeing continued its upmove since yesterday; it jumped 15% today.

About 1704 shares advanced while 1148 shares declined on the BSE.

At 14:36 hours IST: Sensex climbs further; Reliance, ONGC lead

The BSE Sensex climbed further in afternoon trade, helped majorly by index heavyweights Reliance Industries and ONGC, which gained 2.8% each. Metals stocks too extended uptrend. On the global front, European markets like France's CAC, Germany's DAX and Britain's FTSE rose 0.5-0.8%.

Back home, the NSE benchmark was trading at 5,435.85, up 76.30 or 1.42% with 44 components gaining. Meanwhile, the BSE benchmark was up 247.39 points at 17,835.06.

Shares of Jindal Steel and Sterlite Industries topped the buying list, rising 5.5%. Tata Steel gained 2.7% and Hindalco went up 3.4%.

Country's largest software services exporters TCS and Infosys were up 1-1.5%. Cigarette major ITC rose 1%.

Among banks and financials stocks, HDFC and HDFC Bank moved up 1-1.5% while SBI and ICICI Bank were up 0.5-0.8%.

Capital goods major Larsen & Toubro climbed 1% and state-run BHEL was up 2.8%. However, M&M and Wipro remained under pressure, falling about a percent.

The rupee rose on Tuesday supported by gains in local stocks and an improved outlook on foreign inflows, though reluctance to take big positions before Federal Reserve's policy statement later in the day, is seen limiting its rise. Rupee appreciated by 0.26% to 49.84 a dollar.

(With inputs from Reuters)

At 12:58 hours IST: Sensex rises 1%; Wipro, M&M underperform

The BSE Sensex maintained its 200 points gains since early trade. Investors continued their buying since Friday, especially ahead of major events - RBI's monetary policy review and Budget.

The BSE benchmark rose 199 points to 17,786.4, supported by 25 stocks. Meanwhile, the NSE benchmark moved up 62.45 points to 5,422, helped by oil & gas, metals, financials, technology (except Wipro, HCL Tech) and capital goods stocks.

Vineet Bhatnagar, MD, MF Global is bullish on the market and feels that it has enough strength left for a much stronger rally.

The market seems to look optimistic after the Reserve Bank of India slashed cash reserve ratio by 75 basis points to 4.75% on Friday to inject liquidity. However, some experts believe that RBI may refrain from cutting rates further on March 15.

Top gainers among largecaps

Sterlite Industries surged 5%. SAIL, Sesa Goa, Jindal Steel and Ambuja Cements climbed 3.5-4.5%. GAIL, BHEL and Hindalco rallied 2.5-3%.

However, shares of Wipro, country's third largest software services exporter fell 1.5% ahead of promoters selling 3.5 crore shares via offer for sale tomorrow.

M&M, Bajaj Auto, Bharti Airtel, Tata Motors and HCL Tech were down 0.3-1%.

In the second line shares, Manappuram Finance surged 13%. Cox & Kings, Glodyne Tech, PTC India and Gillette India gained 5-7.5%. However, Biocon lost 5% after breaking of deal with Pfizer. Rajesh Exports, Jubilant Foodworks, South Indian Bank and Maharashtra Seamless were down 1.7-2.3%.

Advancing shares outnumbered declining by 1631 to 1035 on the BSE.

At 12:05 hours IST: Sensex holds on to early gains; JSPL, Sterlite top gainers

The BSE Sensex retained its morning gains due to rally in oil & gas and metals, even after somewhat profit booking. Buying continued too in banks, capital goods and technology (barring Wipro) stocks.

The NSE benchmark was up 64.5 points at 5,424.05 and the BSE benchmark climbed 202.44 points to 17,790.11.

Reliance Industries, India's most valued stock, gained 1.5% while rival state-run ONGC rose 2.2%.

Listen to accompanying audio for an analysis of the day's action so far

Metals stocks hogged the limelight today with the BSE Metal Index rising nearly 3%. Shares of Jindal Steel and Sterlite Industries were top gainers, shooting up 4.5%. Tata Steel, Hindalco and Coal India were up 1.5-2%.

Infosys, India's No. 2 software services exporter moved up 1.4% and housing finance company HDFC too gained 1.4%.

Stocks in news

Subex gained over 1% to Rs 28.25. Trading volumes increased 94% to 881,611 shares as compared to 5-day average of 454,254 shares.

Goldman Sachs maintained buy rating on HDIL with a target price of Rs 150/sh as against Rs 113/share. The stock rose 2.75% to Rs 112.15.

SKS Microfinance shot up over 6% amid huge volumes, ahead of Budget. The company says it is looking at raising Rs 350-500 crore via QIP. It sees high probability of MFI bill getting passed. "MFI Bill, once passed, will override the AP MFI Act," the company says.

At 11:21 hours IST: Nifty holds 5400; MCX, United Breweries, Biocon most active

The BSE Sensex stayed strongly higher, supported by 26 out of 30 stocks while the NSE Nifty continued to hold 5400 level quite nicely. Heavyweights Reliance Industries, Infosys, L&T, ONGC and ICICI Bank were quite supportive.

Shares of Sterlite Industries, Jindal Steel, BHEL, Maruti Suzuki, GAIL, Sesa Goa, SAIL and Ambuja Cements surged 2.7-4.5% among largecaps.

The BSE benchmark rose 222 points to 17,809.57 and the NSE benchmark gained 70.6 points or 1.3% at 5,430.15. The Nifty March future was trading with 30 points premium at 5,462. The broader markets too moved up 1%.

However, Wipro remained under pressure as company's promoter Azim Premji's Trust will sell 3.5 crore equity shares via offer for sale route tomorrow. Morgan Stanley, CSFB, Citigroup and UBS are bankers to the issue, which will open between 9 am & 1:30 pm. The stock was dwn 1.38% to Rs 431.70.

M&M, Bajaj Auto and Bharti Airtel were other losers.

Most active shares

MCX India, which listed on Friday, gained 3.86%

Liquor baron Vijay Mallya's United Breweries shot up 13%.

Biocon lost 4.5% after end of company's alliance with Pfizer. MD Kiran Mazumdar said break up with Pfizer would reflect in Q4 financials.

Zodiac Clothing jumped 4% amid extremely high volumes.

SBI, Tata Motors, Reliance Industries and ICICI Bank too were most active shares.

More than three shares advanced for every share falling on the National Stock Exchange.

At 10:09 hours IST: Sensex extends rally; banks, cap goods, oil & gas lead

The BSE Sensex extended rally led by upmove in banks, capital goods, oil & gas, metals and technology stocks. Asian markets too are higher with more than 1% gains barring Shanghai, ahead of the FOMC meet.

The BSE benchmark moved up 215 points to 17,802.70 and the NSE benchmark gained 69.5 points at 5,429.05.

According to PN Vijay, portfolio manager at pnvijay.com, 5600 is possible on the Nifty, if this Budget is decent, if it doesn