Sensex ends up 157 pts on global cues; tech outperforms

Indian equities continued their uptrend for the second consecutive session on Tuesday with the Sensex rising about 350 points in two days. Positive global cues led the rally in today's trade. However, the market was lacklustre in the morning trade amid volatility.

According to Devangshu Datta, Consulting Editor at Outlook, it is almost certainly a technical pull back in today's and yesterday's trade including a fair amount of FII short covering or hedge fund short covering.

The 30-share BSE Sensex gained 156.77 points, to close at 16,498.47 and the 50-share NSE Nifty rose 50.1 points, to settle at 4,948.9.

Experts, however, warn that there may be selling pressure going ahead in short term.

"If you are looking at a two years time frame, you are looking at the market going back to about 6300-6400 in two years time frame. But if you are looking at the next six months I think the market could fall at least another 400-500 points - that would be the next level of support if this breaks. You have got sentiment turned fairly bearish," Datta said.

However Anand Tandon, CEO, JRG Securities feels that from now on each one of these lower bottoms was actually an opportunity for buying.

Today's rally was lead by positive global cues. European markets like France's CAC, Germany's DAX and Britain's FTSE went up 1-1.5% at the time of closing of Indian equities. Even the Dow Jones futures were trading 135 points higher ahead of new home sales for July.

Asian markets closed strong. Kospi and Taiwan rallied 3-4%. Hang Seng jumped 2%. Shanghai, Nikkei and Straits Times were up 1-1.5%.

Back home, technology, the most beaten down sector in previous two weeks, witnessed huge buying interest with the respective index rising 4%. Shares of TCS, India's largest software exporter, was the biggest gainer with gaining 7%. Infosys rallied nearly 4% and HCL Tech went up 2.5%.

Capital goods, telecom, FMCG and select financial stocks too followed the same trend.

Bharti Airtel, BHEL, L&T, Bajaj Auto and Axis Bank surged 2-3%. Reliance Industries, HDFC Bank and HUL were up 1-1.5%.

However, the sell-off in ONGC in the last couple of hours of trade has capped the gains. The stock was down nearly 3% as government said PSU oil companies' FY12 revenues loss is seen at Rs 1.21 lakh crore.

NTPC, Power Grid, Cipla, Tata Motors, Ranbaxy Labs and Maruti fell 1-2.7%.

Market breadth was in favour of advances; about two shares gained for every one share declined. The BSE Midcap and Smallcap indices went up 1%.

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At 14:55 hours IST : Nifty surges to 4950; TCS, Bajaj Auto top gainers

With investors resorting to profit booking at higher levels, the BSE benchmark Sensex partly erased gains accumulated in the last two hours. The Sensex was trading 137 points higher at 16,478 after losing about 50 points from day's high. The 50-share NSE Nifty climbed 53 points to 4,950. 

European markets too fell prey to profit booking at higher levels. France's CAC, Germany's DAX and Britain's FTSE, which rallied 2-3% in the initial trade, were up only 1-1.5%. The Dow Jones futures went up over 118 points.

Back home, SBI and ICICI Bank slipped in to the red again. ONGC extended losses, losing nearly 3%. Even Reliance Industries slipped from the day's high.

But TCS and Bajaj Auto still maintained their uptrend, gaining 7% and 5%, respectively. Among others, Infosys, Bharti Airtel, BHEL and Axis Bank surged 2-4%. HDFC Bank, L&T, HDFC, HUL and Tata Steel were up over 1%.

At 14:51 hours IST - Sensex rises over 150 pts; IT, capital goods, telecom lead

The BSE benchmark Sensex added more than 150 points in afternoon trade. Rally in global markets was the main reason behind recovery from day's low. However, this may also be led by short covering or build up of fresh longs.

The 30-share BSE Sensex recovered more than 250 points from day's low to trade at 16,528, up 187 points. The 50-share NSE Nifty jumped 57 points to 4,956 levels.

However, trader Atul Suri is cautious and warns of a further downturn. Suri pointed out that the Nifty may slip to 4,200 levels. He sees support of Nifty at 4,050-4,100 and subsequently at around 4,650. However, Suri feels that 5,200 is a key level to watch out for.

Technology, capital goods, financial and telecom were the leading sectors. TCS and Bajaj Auto were biggest gainers rising 7% and 5%, respectively.

Infosys, BHEL and Axis Bank shot up 2.5-4% while Reliance Industries, Bharti Airtel, HUL, L&T and Tata Steel were up 1-2%. However, ONGC, NTPC, Power Grid and Cipla were down 1.5-2.5%. ITC, Hero Motocorp, Sterlite and Maruti too were marginally in the red.

About two shares gained for every one share that slipped.

On the global front, European markets extended their rally. France's CAC, Germany's DAX and Britain's FTSE were trading 2-3% up. Asian markets like Shanghai, Hang Seng and Straits Times climbed 1.5-2%. Nikkei rose over 1%. Kospi and Taiwan gained 3-4%.

At 12:55 hours IST : Sensex extends gain on strong European cues

Indian equities strengthened further as European and Asian markets gained. The 30-share BSE Sensex rose 137 points to 16,478 and the 50-share NSE Nifty went up 47 points to 4,946.

European markets like France's CAC, Germany's DAX and Britain's FTSE were trading up 1.5% each. Asian markets moved up further; Shanghai, Hang Seng and Nikkei jumped 1-1.5% each. Kospi shot up 4% and Taiwan gained over 3%, which may be because of short covering. Straits Times went up 0.77%.

TCS was the biggest gainer rising over 6%. Infosys, Bharti Airtel, BHEL, Bajaj Auto and Axis Bank surged 2.5-4%.

Heavyweight Reliance Industries too gained over 1%. L&T, SBI, HUL, HDFC, HDFC Bank and Tata Steel were up 0.7-1.5%.

However, ONGC, NTPC, ITC, Cairn, Tata Motors, Power Grid, GAIL, Maruti, Wipro and Tata Power were down 0.5-1.5%. Cipla was the top loser falling nearly 3%.

At 12:10 hours IST : Sensex recovers 150 pts as TCS, Bharti, Infosys, BHEL rally

The BSE benchmark Sensex recovered over 150 points from the low of 16,213.18. It was supported by heavyweights like TCS, Bharti Airtel, Infosys, BHEL and L&T. The 30-share BSE Sensex was trading at 16,404, up 62 points and the 50-share NSE Nifty was trading 23 points up at 4,923.

TCS and Bajaj Auto were top gainers rising over 4%. Bharti Airtel, Infosys, L&T, DLF and BHEL rallied 1.5-2.5%. SBI and HDFC Bank rebounded with modest gain. Even Reliance Industries too showed some recovery from day's low.

However, selling in counters like ONGC, NTPC, ITC, ICICI Bank, Wipro, M&M, Cipla, Tata Motors, HDFC and Maruti Suzuki capped their upside.

Market breadth also improved; about 865 shares advanced as against 472 shares declined on National Stock Exchange.

Midcaps like Rashtriya Chemical, 3M India, Gujarat Mineral, Aurobindo Pharma and GTL shot up 5-6%.

In the smallcap space, Kiri Industries, Midvalley Entertainment, Reliance Industrial Infra, Infinite Computer and STC India jumped 7-12%.

At 11:02 hours IST : Sensex trades with modest loss; ONGC, NTPC, ITC decline

The market was extremely volatile even though the breadth was in favour of advances. The 30-share BSE Sensex was trading at 16,263, down 78 points and the 50-share NSE Nifty was pointing at 4,878, down 20 points.
 
Largecaps like ONGC, NTPC, ITC, Reliance Industries, ICICI Bank, Wipro, HDFC, SAIL and Sterlite Industries were down 0.7-1.5%.

Cairn India, Tata Motors, M&M and Cipla fell 2-2.5%.

However, TCS was the leading counter on the Nifty, rising nearly 3% on short covering. Technology stocks had beaten down quite sharply in previous two weeks due to fears of slowdown in US and Europe economy.

Bharti Airtel, Infosys, BHEL, L&T, Axis Bank, HUL, JSPL, DLF and Bajaj Auto gained 0.7-1.7%.

About 716 shares advanced while 591 shares declined on National Stock Exchange.

Among midcaps, Rashtriya Chemical, Gujarat Mineral, GTL, Gujarat Gas and Sujana Towers jumped 4-5%. Howerver, Shree Global, KGN Industries, NCC, Phoenix Mills and Federal Bank lost 3-5%.

At 10:18 hours IST : 4900 dodge Nifty; Coal India, M&M top losers

India equity benchmarks were trading lower amid volatility. The 50-share NSE Nifty was struggling to get back above 4900-mark due to sell-off in major sectors like oil & gas, banking and select metal stocks. The index was trading at 4,869, down 29 points and the 30-share BSE Sensex was quoting 16,221, down 120 points despite positive Asian cues. 

Rakesh Arora of Macquarie said, "While markets are looking oversold, confidence levels remain extremely low. This may be a sign of a near bottoming but investors seem to be in a dilemma on whether to buy costly defensives or bottomless beta."

Among largecaps, M&M, Coal India, Tata Motors, Cipla, NTPC and SAIL were top losers falling 1-2.5%. ONGC, Reliance Industries, ITC, Wipro and ICICI Bank were down 1%.

However, TCS, BHEL, Jindal Steel, Sun Pharma, DLF, Axis Bank and Reliance Communications were top gainers rising 1-2%.

Jubilant Foodworks, SBI, Lovable Lingerie, VIP Industries, Indiabulls Real, Infosys, ICICI Bank and Tata Motors were most active shares on exchanges.

About 1160 shares advanced as against 765 shares declined on the BSE.

Asian markets like Kospi and Taiwan gained 2-3%. Shanghai, Hang Seng, Nikkei and Straits Times were up 0.5%.

At 9:18 hours IST : Sensex turns volatile after initial spike; banks tumble

The BSE benchmark Sensex climbed higher on positive Asian cues in the opening trade but fell soon after as IT, oil & gas, financial, select metal, auto and FMCG stocks came under pressure. At 9:19 hours IST, the 30-share BSE Sensex was trading at 16,324, down 17 points and the 50-share NSE Nifty was trading 5 points lower at 4,893.

Among the stocks, Wipro, HCL Tech, M&M, Tata Motors, ICICI Bank, SBI, Tata Steel and GAIL were witnessing selling pressure.

However, Sesa Goa, SAIL, L&T, Reliance Power, Reliance Infrastructure, Reliance Communications, Siemens, DLF, Axis Bank, JSPL, ACC, Bajaj Auto, HUL, TCS and Infosys were supporting the market.

The CNX Midcap rose 31 points to 7,270. About 489 shares advanced while 429 shares declined on NSE.

GVK Power rallied 4% after its arm bought Siemens` 14% in Bangalore Airport SPV.

IVRCL and Punj Lloyd gained 0.5-1%.

Aurobindo Pharma, Thomas Cook, Lovable Lingerie and Tata Global went up 2% each.

However, Mahindra Satyam lost 3% as company slapped with Rs 2114 crore I-T notice for assessment years 2002-03 & 2007-08.

GTL was up 2% and GTL Infra shot up 6%.

Global cues

The US equity markets slipped from day's high after profit booking seen in banking sectors. Gold topped USD 1,900 an ounce for the first time.

The Dow Jones Industrial Average ended up 37 points at 10,855, after slipping 166 points from day's high of 11,020.

NASDAQ Composite was up 3.5 points at 2,345, after slipping 52 points from day's high of 2,397.

S&P 500 Index ended flat at 1,124 after slipping 21 points from day's high of 1,145.

Commodities

CRB Commodity Index was up 0.7%

Gold gained 2.1% at USD 1891.9/ounce after seeing jumping above USD 1900 an ounce for a fresh record high.

Crude oil was up 2.3% at USD 84.12/barrel in the backdrop of Libyan unrest.

Silver went up 2.5% at USD 43.47/ounce

Natural gas fell 1.3% at USD 3.89 per MMBtu

Baltic Dry Index was up 3.6%.