Nifty extends gain on positive European cues; sugar rallies

ALSO READ See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows See how Global Markets are trading Indian ADRs Nifty BSE | NSE 31/05/12 Are Mutual Funds betting on Nifty?

At 13:30 hours IST - the Nifty continued to trade higher and was holding an important psychological level of 5,100. Shares of oil & gas, metal, banking, auto, FMCG, cement and technology companies' shares were witnessing buying interest. However, selling continued in DLF, ICICI Bank, Cairn, Sun Pharma and Suzlon.

On the global front, Shanghai bounced back with smart gains, up 2%. Among other Asian markets, Hang Seng, Nikkei, Straits Times, Kospi and Taiwan Weighted gained 0.3-0.7%. More than 0.5% gain in European markets was also supportive.

The Sensex rallied 146 points to 17,277 and the Nifty rose 42 points to 5,132. The BSE Midcap Index was up 0.5% and Smallcap up 0.65%.

All sugar stocks rallied post UP Sugar Association reached pact with farmers. UP Farmers will get Rs 190-195/quintal for sugarcane. Currently UP SAP (state advisory price) is at Rs 160-165/quintal. US mills will pay Rs 25 over SAP. This is positive for UP sugar mills. Karnataka and Maharashtra are paying Rs 230/quintal for cane.

Bajaj Hindusthan, Balrampur Chini, Dhampur Sugar, Triveni Engg and Oudh Sugar Mill gained 2.5-4%. Among others, Andhra Sugar, Bannariamman, Dwarikesh Sugar, EID Parry, Mawana Sugars, Ponni Sugars (E), Shree Renuka, Simbhaoli Sugar, Upper Ganges and Uttam Sugar were up 1-4%.

Bajaj Hindusthan shot up 4%, as it finalised power capacity expansion to 830 MW. The company is going to set up 5 power plants costing Rs 1,600 crore within 20 months.

Technology stocks were also seeing buying interest. TCS was up 1.4%. Infosys gained 0.6% and Wipro up 0.4%. Infosys said India job scenario getting better. "FY11 hiring target at around 20,000 seems reasonable. See Indian IT industry hiring at 2.5-3 lakh in FY11."

Gold has hit a new high of $1180.10/ounce in the international markets. Ahmedabad 999 gold made an all-time high at Rs 18000/10gms and Mumbai pure gold was at Rs 17800/10 grams.

Top gainers on the BSE Midcap: M&M Financial, KGN Industries, Gujarat Gas, Sintex India and Prism Cement were up 4-6%.

Top losers on the BSE Midcap: Motherson Sumi, Indiabulls Real Estate, Motilal Oswal, Nagarjuna Fertilisers and OnMobile Global slipped 2-4%.

Top gainers on the BSE Smallcap: Honda Siel, KPIT Cummins, Avaya Global, NESCO and Nahar Spinning were up 9-17%.

Top losers on the BSE Smallcap: Grindwell Norton, Jindal Worldwide, Hikal, Shristi Infra and Hind Nat Glass were down 3-7%.

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