Mumbai: The market staged a smart recovery on Tuesday, scoring triple century on the Sensex after shedding nearly 1000 points in previous four sessions. Investors and traders made huge buying in most beaten down banks, capital goods, metals and auto stocks. In fact, the broader markets outperformed benchmarks led by sharp spike in infrastructure and PSU banks.
The BSE benchmark rose 285.37 points or 1.64 per cent, to close at 17,731.12, supported by 24 stocks. Meanwhile, the NSE benchmark moved up 94.30 points or 1.79 per cent at 5,375.50.
According to Abhijit Chakraborty, Senior VP - Institutional Equity of Fortune Equity Brokers, today's rally could be attributed to second LTRO by European Central Bank on February 29.
"Second round of liquidity burst coming from Europe could once again drive the emerging markets and that could be a very significant development coupled with the fact that China continues to maintain a loose monetary policy. Internationally this year is going to be year of liquidity right from Australia, Japan, Europe and US. Every major economy in the world is going to be pumping in liquidity this year," Chakraborty explained.
In the short-term, however, he feels inflation continues to be a threat in India and election results could go either way.
Sudarshan Sukhani of s2analytics.com expects about 100 points upside on the Nifty.
At 14:11 hours IST: Sensex maintains uptrend; Cairn, TCS underperform
The market stayed decisively in a positive terrain, though it erased some gains in the afternoon trade. Banks, auto, metals, capital goods stocks as well as Reliance Industries were the leading the upmove. However, Infosys, TCS, ITC and NTPC were under pressure.
The Sensex gained 248 points at 17,694 and the Nifty moved up 81 points to 5,362.40. The Nifty March futures added 65 points premium at 5,428.
Among laregacps, SBI, Hindalco, IDFC, PNB and Jaiprakash Associates retained their top position in the buying list, rising more than 5.5-6 per cent.
Reliance Infrastructure shot up 9 per cent. Tata Motors, BHEL and Sterlite Industrires gained over 4.5-5 per cent.
However, Cairn India was the biggest loser, falling over 3 per cent. TCS was down more than 2 per cent. BPCL, HCL Tech, ITC and NTPC were down 0.5-1.5 per cent.
The market breadth too remained strong; about 2044 shares advanced while 708 shares declined on the BSE.
In the second line shares, Responsive Industries surged 15 per cent. Indiabulls Financial, HDIL, BGR Energy and Apollo Tyres were up 9-13 per cent.
Smallcaps like Nectar Life, ITI, aurionPro Solutions, Hanung Toys and Kennametal rallied 11-15 per cent.
At 12:44 hours IST: Nifty holds on to 5350; broader markets outperform
The BSE Sensex rose more than 1 per cent on Tuesday as investors scooped up bargains, after the market fell 5.3 per cent over four sessions.
Across the board buying-except in TCS, Infosys and ITC-helped the Sensex add 293 points,. Meanwhile, major buying in beaten down sectors like banks, metals, auto and oil & gas by traders and investors helped the Nifty gain 95 points at 5,376.25.
Reliance Infrastructure, Reliance Communications, JP Associates, Reliance Power and IDFC were biggest gainers among largecaps, shooting up 5.6 per cent-7.6 per cent.
SBI, Tata Motors, Hindalco, Sterlite Industries and BHEL gained around 5 per cent each. ICICI Bank, Tata Steel, Tata Power and DLF moved up 3-4 per cent.
Reliance, HDFC, HDFC Bank, L&T, Bharti, JSPL and M&M were up 2 per cent.
However, TCS was down over 2 per cent. Cairn, BPCL, Infosys and HCL Tech were down 0.5-1.5 per cent.
Broader markets looked more sprightly after yesterday's sharp fall - midcap and smallcap indices rose over 2.5 per cent led by support from infrastructure and banks stocks.
Midcaps like Aurobindo Pharma, HDIL, HMT, Dena Bank and BGR Energy gained 8-9 per cent.
Still, there were political and economic risks ahead, traders said.
"The correction seems to be over for now though the market may not make much headway immediately and would be waiting for the state assembly election results and the budget," said D. D. Sharma, chief executive officer at brokerage Risk Capital Advisors.
The election results due on March 6 in five states of Manipur, Uttarakhand, Goa, Punjab and Uttar Pradesh would give an indication about the outlook for the Congress party, which heads the UPA coalition, before nationwide elections in 2014.
The government will present the annual budget on March 16 for the fiscal year 2012/13, amid slowing economic growth and mounting concerns about public finances.
(With inputs from Reuters)
At 11:40 hours IST: Sensex rises 300 pts; ADAG stocks outperform
The Sensex made a near U-Turn, rebounding close to 300 points on broad-base buying. Barrring technology, all other sectors have seen buying interest. In fact, the broader markets outperformed benchmarks - the BSE Midcap and Smallcap indices shot up close to 2.5 per cent. The BSE benchmark was up 296 points at 17,742 and the NSE benchmark rose 94.4 points to 5,375.60.
Despite the past few days of consolidation, the trend remains upwards, says Dhiren Sarin, chief technical strategist at Barclays Capital.
According to Sarin, buying interest and easing crude prices will aid the Nifty to move to 5750-6000, and adds that bank stocks will lead the upmove.
High beta sector Realty rallied 4 per cent. Metal, Power, Bank, Auto and Capital Goods indices were up 2.5-3 per cent while IT Index fell 0.3 per cent.
Even Anil Dhirubhai Ambani group' stocks topped the buying list among Nifty 50 stocks. Reliance Infrastucture shot up 8 per cent; Reliance Communications was up 6.4 per cent and Reliance Power gained 5 per cent.
Shares of Tata Motors, SBI, BHEL, Sterlite Industries, Hindalco, Tata Steel and DLF gained 3.5-5 per cent.
Reliance Industries, ICICI Bank, HDFC, L&T, Bharti Airtel, Tata Power and Hero Motocorp climbed 2-3 per cent.
However, TCS was the biggest loser among 30 largecaps, falling 1.5 per cent. ITC and Infosys were marginally lower.
Advancing shares outnumbered declining by 1849 to 592 on the BSE.
In the second line shares, HDIL, Lanco Infratech, BOC India, Dena Bank and United Bank jumped 7.5-9 per cent.
Smallcaps like Nectar Life, Kennametal, Indian Metals, aurionPro Solutions and Kanani Industries were up 8-14 per cent.
At 10:26 hours IST: Sensex extends rally; banks, metals, oil & gas lead
The market continues to see gains as traders and investors pick oil & gas, banks, metals and power stocks. The Sensex rebounded after losing close to 1000 points in previous four sessions. The BSE benchmark gained 220.5 points to trade at 17,666.26 and the NSE benchmark rose 68 points to 5,349.45. The Nifty March futures added 57 points premium to trade at 5406.
Over the next 2-3 days, Mithil Pradhan, senior vice president of technicals and derivatives at Violet Arch Capital Advisors said he would be looking at signs of strength . "I belong to the bull camp and I have changed the entire strategy from sell on rallies to buy on declines. So if the market is giving me an opportunity coming back to the 5200-5300 range, I am actually going to be a buyer," he added.
Index heavyweights Reliance Industries, SBI and ICICI Bank rallied 2-2.5 per cent. HDFC and HDFC Bank rose 1-2 per cent.
Shares of Tata Motors, Tata Steel, BHEL, Sterlite and Hindalco topped the buying list, rising 3-4 per cent.
Among others, L&T, Bharti Airtel, ITC and ONGC gained 0.4-1 per cent.
However, only TCS underperformed among Sensex 30 stocks, falling 1 per cent.
The broader markets outperformed benchmarks - the BSE Midcap and Smallcap indices climbed nearly 2 per cent.
About three shares advanced for every share falling on the BSE.
At 9:19 hours IST: Nifty bounces back above 5300; RIL, ICICI Bank gain
The Sensex added about 190 points in early trade after falling sharply in last four sessions. Banks, oil & gas, capital goods, metals and auto stocks supported the buys. The BSE benchmark gained 191 points to trade at 17,637 and the NSE benchmark Nifty rose 60 points to 5,341.
Largecaps like ICICI Bank, Axis Bank, SBI, Kotak Mahindra Bank, PNB, Reliance Communications, Reliance Infrastructure, BHEL, Reliance Industries, ONGC, JP Associates, Hindalco, Sesa Goa (after fall of 10.5 per cent yesterday) were up 1.5-2 per cent in early trade.
The CNX Midcap Index rose 70 points to 7,421. The market breadth was strong as broader markets butchered quite badly in last few sessions. About five shares advanced for every share falling on the National Stock Exchange.
In the second line shares, GVK Power, Lanco Infratech, Adani Power, Suzlon Energy, BGR Energy and Voltas gained 2.5-4 per cent.
UB Group companies bounced back on media reports that two foreign carriers showed interest in picking up stake in Kingfisher. Kingfisher Airlines, United Spirits and United Breweries Holdings were up 4.6 per cent-5.5 per cent.
Gujarat NRE Coke, Firstsource, Titan, Jain Irrigation, Pantaloon Retail, Evereardy and Bank of Maharashtra rallied 2-4 per cent.
However, Bajaj Hindusthan was down 1 per cent.
On the global front, Asian markets were training mixed. Shanghai was down 0.4 per cent and Nikkei fell 6 per cent while Hang Seng, Straits Times and Kospi rose 0.1-0.4 per cent. The US equity markets were flat.
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