Nifty closes above 5500 on oil & gas, banks, infra support

The benchmark Nifty rose nearly 1%, to close above the 5,500-mark for the first time in last nine days, supported mainly by oil & gas, banking and capital goods companies' shares. Fuel price hike on Friday after market hours and further fall in crude oil prices pushed the benchmarks higher on Monday.

The 30-share BSE Sensex added more than 850 points in three days, before closing at 18,412.41, up 171.73 points. The 50-share NSE Nifty gained 55.35 points, to settle at 5,526.60. According to Rahul Mohindar of viratechindia.com, one should watch out for 5610-5620. "Once we get passed 5600 there is going to be lot of stocks breaking out key levels and that will be a huge sigh of relief from a broad market perspective," he said. PSU oil & gas stocks were the top stars for the day, especially after hike in diesel prices and cut in custom duty. ONGC, BPCL and IOC gained 6-9%, before closing with 3-4.5% upside. Oil India and HPCL rallied nearly 6%. The Empowered Group of Ministers headed by Finance Minister Pranab Mukherjee has hiked diesel prices by Rs 3/litre on Friday evening. Government also increased kerosene prices by Rs 2/litre and cooking gas by Rs 50/cylinder. Government also removed customs duty on crude oil and cut customs duty on petroleum products by 5%. It reduced excise duty on diesel by Rs 2.6/litre. In the international market, crude oil prices slipped further today. Amit Rustagi, Oil & Gas Analyst, Antique Stock Broking said by taking measures like duty cuts, increasing the prices the government has been able to reduce the overall under-recoveries by roughly Rs 80,000 crore. Rustagi feels that BPCL, HPCL and IOC can see 25% upside, even from the current levels. He is also bullish on ONGC and MRPL. Heavyweights L&T, SBI, TCS, ICICI Bank, Bharti Airtel, HDFC Bank, BHEL and HDFC went up 1-2.5%. Power Grid Corporation was among top three gainers, with rising 4.5%. Four-wheeler stocks too were on buyers' radar. Tata Motors, M&M and Maruti Suzuki gained 1-3% while two-wheeler space took beating - Hero Honda was down 0.7% and Bajaj Auto down 0.3%. However, ITC, Wipro, DLF, HUL, Grasim, HCL Tech, Ambuja Cements and Cairn India were only losers on Nifty. Midcaps like Gujarat Flourochem, Jubilant Life, Videocon Industries, Polaris and Shree Global shot up 5-9% while Religare Enterprises, Bhushan, HDIL, GTL and KGN Industries lost 3-4%. Smallcaps like Bhagwati Banquet, Kewal Kiran, C & C Construction, Aegis Logistics and Kiri Industries jumped 10-16% whereas Unisys Soft, Newtime Infra, R M Mohite, Smartlink Network and Money Matters fell 4-10%. Brent crude was trading at USD 104 a barrel, down USD 1, which slipped nearly USD 2.5 a barrel during the day. NYMEX crude was close to USD 90 a barrel. _PAGEBREAK_ Sensex surges; banks, capital goods gain Indian benchmark indices continued to trade higher. Strong buying interest was seen in banks, capital goods, auto, oil & gas and metal stocks. However, realty and FMCG stocks were trading weak. The broader indices - midcap and smallcap were up nearly 1% each. Heavyweights like Infosys, ONGC, ICICI Bank, L&T and HDFC Bank were positive contributors to the bourses. At 14.57 hrs IST, the Sensex was up 158.65 points or 0.87% at 18399.33, and the Nifty was up 51.95 points or 0.95% at 5523.20. About 1625 shares advanced while 1158 shares declined. Vibhav Kapoor of IL&FS said that the Nifty is unlikely to breach 5200. He further added that oil price is unlikely to go up and July will be an important month due to cues like earnings and monsoon. However, he warned that global risks are more elevated than domestic risks. Top gainers on the Sensex were ONGC at Rs 284.75 up 4.38%, M&M at Rs 692.20 up 2.98%, L&T at Rs 1,777 up 2.19%, Maruti Suzuki at Rs 1,142 up 1.85% and HDFC Bank at Rs 2,423.50 up 1.77%. Refinery major HPCL was trading at Rs 415.45 up 5.85% from its previous close of Rs 392.50. Top losers on the Sensex were Reliance Infra at Rs 519 down 2.16%, ITC at Rs 193.10 down 1%, DLF at Rs 214.45 down 0.95%, Hero Honda at Rs 1,850.50 down 0.84% and HUL at Rs 322.80 down 0.4%. Cigarette major ITC was trading at Rs 193.10 down 1% from its previous close of Rs 195.05. Sensex gains over 150 pts; SBI, ONGC most active Indian equity benchmarks were consistently holding the upside momentum, led by oil & gas, PSU, banking, metal and capital goods companies' shares - especially after fall in crude oil prices as well as hike in petroleum products prices. The 50-share NSE Nifty was trading at 5,525, up 54 points and the 30-share BSE Sensex jumped 163 points to 18,403. IV Subramanium, Director of Qauntum AMC, feels that this rally might not sustain in the sense that the macro headwinds seen over the past few months that continue to exist, although we have been finding signs of oil prices easing up. "In terms of inflation, global slowdown and its impact on FII flows, those concerns still remain." He also believes that the Sensex will be range bound with marginal bias towards the downside. PSU oil & gas stocks were witnessing huge buying interest and traded volume in these stocks was quite high compared to five-day average. ONGC, BPCL, IOC, HPCL and Oil India rallied 3-6%. GAIL rose 1.5%. However, all these stocks saw profit booking at higher levels. Largecaps like SBI, L&T, ICICI Bank, HDFC Bank, TCS, Infosys, Bharti Airtel and HDFC were up 1-2%. However, ITC, Wipro, Hero Honda, HUL, Reliance Infrastructure, Grasim and Reliance Communications were only losers. SBI, ONGC, Timbor Home, Lovable Lingerie, Lanco Infratech, ICICI Bank, Infosys and L&T were most active shares on exchanges. Midcaps like Gujarat Flourochem, Videocon Industries, Jubilant Life, India Infoline and SpiceJet gained 5-9% while Godfrey Phillip, Bhushan, AIA Engineering, Kirloskar Oil and Sunteck Realty lost 3-5%. In the smallcap space, Bhagwati Banquet was locked at 20% upper circuit. Kewal Kiran, Parekh Aluminex, Aegis Logistics and Kiri Industries rallied 10-15%. However, Sahara One, R M Mohite, Shristi Infra, Binny and Surana Corp slipped 4-6%. Nifty holds 5500 on oil & gas, PSU support; crude slips The benchmark Nifty continued to hold the 5500-mark today, supported by oil & gas, metal, capital goods, financial and select technology companies' shares. However, the selling in ITC, Wipro, HUL, Hero Honda, Reliance Infrastructure and Reliance Communications has capped the upside at 12:27 hours. Fuel reforms and falling crude price are positive for India equities, says Nandan Chakraborty of ENAM. Government has hiked diesel prices by Rs 3/litre, cooking gas by Rs 50/cylinder and kerosene by Rs 2/litre on Friday. Government also removed customs duty on crude oil and customs duty on petroleum products by 5%. It cut down excise duty on diesel by Rs 2.6/litre. ONGC and BPCL rallied nearly 5% each. However, crude oil prices were seeing correction since last week. NYMEX crude was trading at USD 90.02 a barrel, down over a percent. Brent crude fell USD 2.39 to USD 102.73 a barrel. "We have revised our model portfolio, adding PSU banks and OMCs post the recent developments. We feel interest rates in India will peak out earlier than expected," Chakraborty said. The 30-share BSE Sensex was trading at 18,381, up 141 points and the 50-share NSE Nifty rose 48 points to 5,519. Heavyweights like HDFC, Bharti Airtel, L&T,  HDFC Bank and ICICI Bank gained 1-2%. Reliance Industries, Infosys, TCS, SBI and BHEL went up about 0.5%. GAIL, Power Grid Corp and SAIL were up 2-3%. Market breadth was in favour of advances - about two shares advanced for every one share falling on National Stock Exchange. The broader indices too were following the same trend - the BSE Midcap and Smallcap indices moved up 0.7% each. Midcaps like Gujarat Flourochem shot up 12%. Videocon Industries, Bajaj Finserv, India Cements and Jubilant Life were up 4-8%. However, KGN Industries, Kirloskar Oil, AIA Engineering, Bhushan and Kwality Dairy slipped 2-4%. Sensex rallies further; ONGC, BPCL, SAIL, M&M top gainers Buying in oil & gas, banking, metal and capital goods companies' shares supported equity benchmarks to rally further in today's morning trade. The benchmark Sensex added more than 150 points while the Nifty got back above the 5500 level for the first time in last nine sessions. Vibhav Kapoor of IL&FS is also optimistic that the market is not poised for a sharp decline. Kapoor said that the Nifty is unlikely to breach 5200. Applying balm to nervous nerves, he further added that oil price is unlikely to go up. Kapoor explained that July is an important month due to cues like earnings and monsoon. However, he warned that global risks are more elevated than domestic risks. Global markets were down on European debt worries. The 30-share BSE Sensex was trading 18,390, up 150 points and the 50-share NSE Nifty went up 50 points to 5,521. Hike in diesel prices by Rs 3/litre, LPG by Rs 50/cylinder (excluding VAT) and Kerosene by Rs 2/litre helped the oil & gas stocks to continue their Friday's rally further. ONGC, Oil India BPCL, HPCL and IOC were up 4-6%. GAIL rose 2%. Reliance Industries too gained 0.8%. Government also scrapped customs duty on crude oil and customs duty on petroleum products by 5%. It reduced excise duty on diesel by Rs 2.6/litre while additional excise duty has not been cut. SP Tulsian, sptulsian.com said, "Overall this is quite positive for the oil sector and especially for the oil marketing companies (OMCs). Going by the analysis, ONGC should be the largest beneficiary. Apart from that the oil marketing companies will stand to gain but amongst all three HPCL should be the larger beneficiary." SAIL, Power Grid, M&M, L&T, HDFC Bank, HDFC, Tata Steel and DLF were up 1-3%. Bharti Airtel, BHEL, ICICI Bank, NTPC and Wipro were marginally in the green. However, HCL Tech, Hero Honda, Maruti and Reliance Infrastructure were only losers on Nifty. Midcaps like Monsanto India, Videocon Industries, Simplex Infra, KGN Industries and UTV Software gained 3.5-4.5% while AIA Engineering, Info Edge, Jet Airways, Godfrey Phillip and Havells India lost 1.5-3%. About 2 shares advanced for every one share declining on National Stock Exchange. Oil & gas pushes Nifty above 5500 post diesel hike The benchmark Sensex started a trade with negative bias on Monday morning but those losses were completely offset by rally in oil & gas companies' shares after hike in diesel and LPG prices on Friday. Capital goods, healthcare and select technology companies' shares too were supporting the Nifty to touch the 5500 level in early trade. ONGC rallied 7.5%. Oil marketing companies like BPCL, HPCL and IOC shot up 6%. GAIL gained 3% and Oil India was up 5%. MRPL too went up 1.5%. The Empowered Group of Ministers on fuel headed by Finance Minister Pranab Mukherjee increased diesel prices by Rs 3 per litre. Kerosene prices hiked by Rs 2 per litre while LPG rates have been raised by Rs 50 per cylinder. The price hike is excluding value added tax (VAT). SK Joshi, Director of Finance, BPCL said the immediate impact of the measures taken by government on Friday would reduce our liquidity strain. HDFC Bank and Kotak Mahindra Bank were other gainers. However, ICICI Bank, HCL Tech, Infosys, Tata Motors, SBI, Hero Honda, SAIL, Sterlite Industries and Reliance Industries were down. At 9:34 hours IST, the 50-share NSE Nifty was trading at 5,508, up 37 points and the 30-share BSE Sensex gained 118 points to 18,358. Midcap & Smallcap space Lanco Infratech tumbled 5% after falling 10% on Friday. Company faced A$ 3.5 billion lawsuit in Australia. Unitech, GTL and GTL Infrastructure were down 1.5%. Lenders asked SBI Caps to do due diligence on GTL and submit report in 30 days, reports CNBC-TV18 quoting sources. Jet Airways lost 2% on profit booking. Recently listed Timbor Home tumbled another 6%. However, Adani Enterprises and Essar Oil gained 2% Global cues Asian markets were trading lower. Hang Seng, Nikkei, Straits Times, Kospi and Taiwan fell 0.9-1%. However, Shanghai was up 0.3%. Global markets were weak on European debt concerns. The Dow Jones Industrial Average ended down 115 points at 11,934. NASDAQ Composite was down 34 points at 2,653 and S&P 500 index fell 15 points at 1,268. Europe Update Lawmakers in Greece will debate on approving the new austerity package today.  Commodities WTI crude was trading around USD 90/barrel Brent crude was around USD 104/barrel Gold slipped further to close at USD 1500 mark F&O cues: Futures Open Int up Rs 1073 cr and Options Open Interest up Rs 1837 cr Stock future add 0.5 cr shares in Open Int Nifty June future shed 24 lk shrs in Open Int Premium at 13-point versus 4-point discount Nifty July futures add 18 lakh shares in Open Interest Nifty Open Interest Put Call Ratio at 1.28 vs 1.07 Nifty Puts add 91 lk shrs in Open Int Nifty Calls shed 54 lk shrs in Open Interest Nifty 5400 Put adds 41lakh shares in Open Int Nifty 5500 Put adds 28 lakh shares in Open Int Nifty 5400 Call sheds 20 lakh shares in Open Int Nifty 5300 Call sheds 15 lakh shares in Open Int Kingfisher Airline, GTL and Videocoon in F&O ban