Sensex sees profit booking; ONGC, L&T, ITC drag

Indian equity benchmarks shaved off almost all gains due to profit booking and fears of interest rate hike post GDP data. The 30-share BSE Sensex was trading at 16,457, up 41 points and the 50-share NSE Nifty rose 13 points to 4,933.

Laurence Balanco, Asian technical research at CLSA feels that the Nifty looks oversold, which has led to the relief rally. "The rebound is likely to be short-lived," he pointed out.

Historically, August and September are the worst months for the index. "Thus, we believe the 50-share Nifty will head back to 4,400 levels," he added.

L&T extended losses, which lost 2.5%. SBI, ITC, NTPC, Wipro, BHEL, Tata Motors, Maruti and Reliance Infrastructure slipped into red.

ONGC continued to trade with 4% loss as company is likely to launch follow-on public offer on September 20. Even other stocks came off their day's high.

However, Reliance Industries, Bharti Airtel, TCS and HDFC gained 1-2%. Tata Steel, Sun Pharma, Sesa Goa, Axis Bank and DLF surged 2-4%.

ICICI Bank, HDFC Bank and Infosys were up 0.4-0.9%.

The Indian economy grew a meagre 7.7% in the first (April-June) quarter of fiscal year 2012 as against 9.3% recorded in the same quarter last year.

At 11:28 hours IST : Nifty holds on early gains, profit booking at higher levels

The BSE benchmark Sensex held on to early gains post announcement of gross domestic product (GDP) data, which was on expected lines. But the market has seen some profit booking at higher levels; it seemed that investors may be using the strategy of 'sell on rallies'.

The 50-share NSE Nifty jumped 39 points to 4,958 and the 30-share BSE Sensex was trading at 16,554, up 129 points amid volatility.

GDP for the quarter ended June 2011 came in at 7.7% as against 9.3% in the year ago period. CNBC-TV18 poll saw GDP at 7.6%. Manufacturing, construction and mining sectors growth declined in the Q1FY11 while there was some improvement in the farm sector.

Largecaps like Reliance Industries, TCS, Bharti Airtel, HDFC, HDFC Bank and ICICI Bank gained 1.5-2.7%. Tata Steel, Axis Bank and DLF surged 3-4.7%.

Reliance Communications was the biggest gainer; the stock gained nearly 5%.

However, ONGC remained under pressure, which lost 4%. L&T extended losses after GDP data; the stock fell 1.5%.

SAIL, GAIL, Bajaj Auto, ITC, BPCL, NTPC and Kotak Mahindra Bank too were down.

About 2.5 share gained for every share falling.

At 10:49 hours IST : Nifty strengthens again amid choppy trade; RIL leads

Equity benchmarks strengthened again amid a choppy trade. Heavyweight Reliance Industries surged 3% on the back of fresh longs build up. The 30-share BSE Sensex was trading at 16,605, up 189 points and the 50-share NSE Nifty jumped 58 points to 4,977.

The market awaits GDP data for Q1FY11, which, according to a CNBC-TV18 poll is seen at 7.6% as against 9.3% in a year ago period.

Financial, telecom, realty, technology and ADAG stocks were on buyers' radar.

Among largecaps, Tata Steel, DLF, Jaiprakash Associates, Reliance Industries, Bharti Airtel, Reliance Communications and Reliance Capital were top gainers; these stocks gained 2-4%.

However, ONGC plunged 4% as company is likely to hit market on September 20.

GAIL, Bajaj Auto, BPCL, BHEL and NTPC were other losers.

India Securities, Bajaj Finserv, SBI, Tata Steel, Reliance Capital, Reliance Industries, ONGC and ICICI Bank were most active shares on exchanges.

About 1580 shares advanced as against 661 shares declined on BSE.
Stocks in news

Maruti bounced back with 0.5% gain as company may partly resume operations at Manesar Unit today.

Torrent Power gained 3% as it received carbon credits worth Rs 297 crore.

Religare Enterprises moved up 2% as company formed advisory panel for group's banking foray. Kiran Karnik & Suman Bery will be part of advisory panel.

At 10:11 hours IST : Mkt erases some gains ahead of GDP announcement; ONGC dives

The BSE benchmark Sensex erased some gains ahead of the announcement of gross domestic product (GDP) data. Profit booking could be another reason behind fall from day's high. The 30-share BSE Sensex was trading at 16,527, up 111 and the 50-share NSE Nifty went up 32 points to 4,952 amid volatility.

GDP, which shows the health of a country's economy, for the first quarter of FY11 may come lower at 7.6% as against 9.3% in a year ago period, according to CNBC-TV18 poll.

Financial, realty, technology, telecom and Anil Dhirubhai Ambani Group's stocks were still on buyers' radar. Even Reliance Industries was quite supportive, gaining 2%.

However, shares of state-run ONGC collapsed as the company is likely to launch its follow-on public offer on September 20. The stock fell nearly 5%.

ITC, SAIL, Maruti, NTPC, Kotak Mahindra Bank, Bajaj Auto, Hindalco and ACC were other losers, which slipped on profit booking.

Capital goods stocks like BHEL and L&T were marginally in the red ahead of GDP.

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At 9:18 hours IST : Global cues lift Sensex 200 pts higher; RIL, TCS lead

Indian equity benchmarks continued to trend higher on Tuesday morning led by positive global cues. The indices reacted to the 15% jump in Athex (Greek market) Composite on consolidation in the banking industry. There was also a sigh of relief as the damage from Hurricane Irene was less than feared.

Technology, financial, metal, realty and capital goods stocks were seeing buying interest. But investors looked a bit cautious ahead of GDP data today.

The 30-share BSE Sensex was trading at 16,621, up 205 points and the 50-share NSE Nifty rose 62 points to 4,982 led by gains in 45 stocks.

Anil Dhirubhai Ambani Group's stocks like Reliance Capital, Reliance Communications and Reliance Power maintained uptrend; stocks rallied 2-4%.

DLF, HCL Tech and Infosys were up 2-3%. In the financial space, ICICI Bank, Axis Bank, Kotak Mahindra Bank and SBI moved up 1.5-3%.

Among other largecaps, Tata Steel, JSPL, SAIL, Reliance Industries (up 2%), Bharti Airtel, L&T and Tata Motors too were on buyers' radar.

However, ONGC fell 1.5% as company's FPO is likely to hit market on September 20.

Maruti declined 1% as its Manesar plant hit by labour unrest.

The CNX Midcap rose 91 points to 7,292. About six shares gained for every share falling.

Non-banking finance companies like Bajaj Finserv shot up 6% and L&T Finance Holdings up 3%. PFC rose 3% and REC went up 2%.

Infrastructure stocks like Lanco Infratech and NCC gained 2%.

Dhanalaxmi Bank and Karur Vysya Bank were up 2-3%.

However, Gujarat NRE Coke fell 2%.

Global cues

Global markets continued to gain on Monday post Greek markets surged 15% on back of consolidation in the banking industry and damage from Hurricane Irene was less than feared. Financials led the rally.

Asian markets were trading 1-2% higher.

Athex stock market surged 15% after the country's second- and third-largest lenders agreed to combine (Eurobank & Alpha Bank each surged nearly 30%, National Bank of Greece (largest bank) surged 29%).

The Dow Jones Industrial Average ended up 255 points at 11,539. NASDAQ Composite surged 82 points at 2,562 and S&P 500 Index went up 33 points at 1,210.

Commodities

Gold prices fell 0.3% at USD 1791.6/ounce on Monday. It was trading up 1% in opening trade today.

October crude oil contract went up 2.2% at USD 87.27/barrel.

September natural gas was down 2.9% at USD 3.83 per MMBtu after Hurricane Irene's impact was far less destructive than originally thought

September silver contract shed 0.9% at USD 40.55/ounce

Sugar was down 1%

F&O cues:

Total stock futures OI add 1.4 cr shares in OI 

Nifty futures OI shed 10.2 lakh shares in OI, prem at 13 pts vs 1 pt prem

Nifty Open Int PCR at 1.28 vs 1.27

Total Put adds 33 lakh shares, call adds 22 lakh shares

Highest OI outstanding at 4700 put, 4600 put and 4800 put

Nifty 5200 call adds 10.14 lakh (26%) shares in Open Int