January 24, 2011 / 16:43 IST
Equity benchmarks showed smart uptrend on Monday, especially led by financials ahead of RBI's quarterly monetary policy meet tomorrow. ONGC, BHEL, Infosys, NTPC, M&M, Maruti, DLF, L&T and Tata Steel also added more strength to the markets today; these gains could be because of short covering.
However, the rally was capped by sell-off in heavyweights Reliance Industries and Wipro. SAIL, Sesa Goa, Hindalco, Cipla and Dr Reddy's Labs along with telecom and Anil Dhirubhai Ambani Group companies' shares added more pressure.Banks led the major support today, especially ahead of RBI's policy meet on January 25. Experts were expecting 25 bps hike in key rates tomorrow by RBI to control rising inflation. But beyond that would be negative for markets.Sajiv Dhawan of JV Capital Services said 25 basis points would not be a problem. But if RBI goes for 50 basis points, he said that would obviously be a negative reaction from the markets initially. Taimur Baig, Chief Economist - India Global Markets Research, Deutsche Bank AG too said that RBI would do 25 basis points. "It would be a positive surprise as far as I am concerned if they do 50 bps because that would mean that they are not that worried about the growth outlook and if anything they are putting inflation as a first priority."The central bank has raised its key rates six times since March of last year in a bid to tame prices and is expected to tighten further tomorrow at its quarterly monetary review. Petrol prices have also risen sharply in the meantime with state-owned oil companies raising prices by Rs 2.50-2.54 per litre.The BSE Bankex outperformed others with 2.4% rise. Even SBI, country's largest lender, was another trigger for markets today post its strong operational performance in Q3FY11. Margins expanded in December quarter, supported by CASA & hike in lending rate. The stock rallied 3.78% followed by HDFC, HDFC Bank, Axis Bank and PNB with gain of 2.2-3%. India's second largest bank ICICI Bank too reported good earnings. Its Q3 net profit was up by 30.50% to Rs 1437 crore and net interest income up by 12.32% to Rs 2,311.7 crore on YoY basis. Provisions declined to Rs 464 crore in December quarter from Rs 1,002 crore. The stock rose 1.7%.The 30-share BSE Sensex closed at 19,151.28, up 143.75 points or 0.76% and the 50-share NSE Nifty rose 46.75 points or 0.82% to settle at 5,743.25. Anil Manghnani Of Modern Shares & Stock Brokers feels that maybe 5838 to 5900 would be the supply zone. Buying was also seen in PSU oil & gas companies' shares on hopes that Finance Ministry may approve Rs 10,000 crore oil subsidy soon, reports CNBC-TV18 quoting sources of NW18. Oil Ministry sources also said PSU companies would post Q3 results after fresh subsidy. ONGC shot up 3%; GAIL and BPCL were up 1.6%. Capital goods space was also supportive. BHEL went up 2.78% and L&T up 0.57%. In power space, NTPC was up 1.4%. There was a mixed trend in technology and auto segments. M&M and Maruti (raised product prices by upto Rs 8,000/unit) from auto space rallied 2.8-3.5% while Hero Honda and Bajaj Auto fell 0.5%. DLF from realty space went up 1.67%.In tech pack, Infosys and HCL Tech gained 1.3-1.7% whereas Wipro continued to bleed today as well with fall of 2.6%, especially after its Q3FY11 numbers and rejig at top management level on Friday. TCS was down 0.2%.Tata Steel from metal segment jumped 3% and Sterlite Industries was up 0.5% while SAIL, Sesa Goa and Hindalco slipped 1-2%. ACC and Ambuja Cements were up 0.4-0.67%.Heavyweight Reliance Industries capped major gains of markets today by falling 1.5%; could be because of results. Bharti Airtel also fell 0.88%. Anil Dhirubhai Ambani Group companies' shares like Reliance Communications, Reliance Power, Reliance Infrastructure and Reliance Capital were down 0.5-1.17%. In midcap space, Core Projects, Glodyne Tech, Prestige Estate, KSK Energy Ventures and Monnet Ispat rallied 8.76-10% while Sunteck Realty, KGN Industries, Jyothy Labs, Hathway Cable and Gujarat NRE Coke fell 3.4-5%.In smallcap space, TTK Prestige, Odyssey Finance, IFB Industries, TTK Healthcare and REI Six Ten shot up 15-20% whereas Kennametal, Premier, Madhucon Projects, Dalmia Bharat and Lloyds Steel lost 5-9.7%.About 1702 shares advanced as against 1174 shares declined on Bombay Stock Exchange._PAGEBREAK_Sensex up over 100 pts; ONGC, SBI, BHEL, HDFC leadAt 15 hours IST - the benchmark Sensex was still holding 100 points gains amid a bit of volatility, led by support from financials ahead of RBI's quarterly policy meet. Heavyweights like ONGC, BHEL, NTPC and Infosys were other leading gainers followed by metal, realty, cement and select metal companies' shares.However, Anil Dhirubhai Ambani Group, private sector power and telecom companies' shares along with Reliance Industries, Wipro, TCS, SAIL, Hindalco, Sesa Goa, Cipla and Bajaj Auto were witnessing selling pressure.The 30-share BSE Sensex was trading at 19,138, up 131 points and the 50-share NSE Nifty rose 44 points to 5,740.Among largecaps, SBI, ONGC, Tata Steel, BHEL, HDFC and Axis Bank surged 2.5-4%. However, Wipro, Reliance Industries, Reliance Communications, Cipla, Reliance Infrastructure and Sesa Goa slipped 1.5-2.5%.SBI, ICICI Bank, KSK Energy Ventures, LIC Housing Finance, Reliance Industries, Axis Bank and Tata Steel were most active shares on exchanges.In midcap space, Monnet Ispat, Core Projects, Prestige Estate, National Fertiliser and KSK Energy Ventures rallied 7.5-10% while Sunteck Realty, KGN Industries, Jyothy Labs, Gujarat NRE Coke and Radico Khaitan fell 2.7-5.5%.In smallcap space, TTK Prestige, Odyssey Finance, TTK Healthcare, Hawkins Cooker and Cambridge Solutions jumped 11-20% whereas Kennametal, Modern India, Premier, Madhucon Projects and Rossell Tea lost 5-9.5%.About 1657 shares advanced as against 1132 shares declined on Bombay Stock Exchange._PAGEBREAK_Sensex northbound; RIL, Wipro, RCom, Rel Infra dipAt 13:31 hours IST - equity benchmarks came off their day's high on the back of downtrend in heavyweight Reliance Industries (slipped 1.8%). Telecom, Anil Dhirubhai Ambani Group and private sector power companies' shares along with Wipro, TCS, SAIL, ITC and Dr Reddy's Labs.However, financial, metal, realty, cement and capital goods companies' shares along with ONGC, Infosys and NTPC were quite strongly supportive to the markets. Even ICICI Bank gained one percent after better-than-expected quarterly numbers. ICICI Bank reported Q3 net interest income of Rs 2,311.70 crore as against Rs 2,301.70 crore and net profit of Rs 1,437 crore versus Rs 1,374.20 crore. Even European markets were also supportive, which opened with gap up today. The 30-share BSE Sensex was trading at 19,124, up 117 points and the 50-share NSE Nifty rose 38 points to 5,734. The broader indices too gained 0.6% each.The BSE Bankex led the major support today with 2.2% gains, which could be short covering ahead of RBI's quarterly policy meet. Experts believe that there could be 25 bps hike in key rates but beyond that would be trigger sell-off. Country's largest lender SBI showed good performance in Q3FY11 and its margins expanded, supported by CASA & hike in lending rate. The stock rallied 3.7%. HDFC was up 2.8% and Axis Bank jumped 4%. HDFC Bank rose 2%. PNB and Kotak Mahindra Bank were up 0.8-1%.Heavyweight ONGC shot up 3% while Reliance Industries tanked 1.8%. Among others BHEL rose 3%. Infosys and NTPC were up 1.3% each.However, Wipro, Reliance Communications, Reliance Infrastructure and Cipla were down 1-2.2%.SBI, ICICI Bank, KSK Energy Ventures, LIC Housing Finance, Reliance Industries, Axis Bank and Tata Steel were most active shares on exchanges.In midcap space, Monnet Ispat, Apollo Hospital, Core Projects, KSK Energy Ventures and Sanwaria Agro gained 5-10% while Sunteck Realty, Parsvnath, Gujarat NRE Coke, Peninsula Land and Jyothy Labs lost 2-5%.In smallcap space, Odyssey Finance, Indiabulls Securities, Jai Balaji Inds, Prraneta Inds and Shristi Infra rallied 10-18%. However, Kennametal, Premier, Surana Inds, Madhucon Projects and Rossell Tea slipped 5-9.5%.Nifty hits 5750; financials, metals, capital goods gainAt 11:53 hours IST - consistent buying in financial, capital goods, FMCG, metal and auto companies' shares along with heavyweights ONGC & NTPC pushed the benchmark Nifty above 5,750 level. Short covering could be a reason behind this uptrend, ahead of RBI's quarterly policy meet tomorrow.Ambareesh Baliga of Karvy Stock Broking says though he sees chances of a pullback rally, but that wouldn
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