25th April, 2013 : Bulls back in saddle; push Nifty above 5900 mark

iiflThe Nifty has re-conquered the 5,900 mark, closing the April F&O series on a high. The Sensex too shut shop above 19,400.

The markets rallied in the last half an hour of trade after volume-weighted average price-based buying in banking and auto stocks lifted the Nifty nearly 60 points from the day’s low. In lay terms, VWAP is the ratio of average traded price to the total volume traded over a particular time horizon.

The other major contributors to the rally were healthcare, oil and gas, metals, power and PSU stocks. Today’s rally was broad-based as mid- and smallcaps saw buying momentum. However, IT, telecom and consumer durable stocks disappointed in trade today.

The Sensex closed at 19406, up 227 points over Tuesday’s close. In intraday trade the stock touched a high of 19434 and a low of 19192.

The Nifty shut shop at 5,916, up 79 points over its previous close. It touched a day’s high of 5,924 and a low of 5,853.

“The interest rate sensitive stocks would continue to remain in action as expectations of a rate cut have increased after PM economic panel was reported as saying that it expects WPI inflation to average 6% in FY14. In addition, core sector data for March would be released in the coming week. In corporate earning terms, ICICI Bank will release its quarterly earning on 26 April, we expect a sequential decline in net profit driven by elevated cost of funds and a higher credit cost,” says Amar Ambani, Head of Research, IIFL.

 Reliance Industries, Tata Power, ICICI Bank, L&T, Bharti Airtel, State Bank of India, Gail India, Sterlite Industries, Tata Motors, Coal India, ONGC, Jindal Steel, M&M, Tata Steel, NTPC, Sun Pharmaceuticals, Bajaj Auto and Dr Reddy’s Laboratories led the gainers pack while Wipro, Tata Consultancy Services, Infosys, Hindustan Unilever, and HDFC Bank lagged.

Dr Reddy’s, Kotak Mahindra Bank, ITC and MRF touched new 52-week highs in trade today.

The advance-decline ratio favoured the bulls with 1211 stocks advances against 1158 declines on the Bombay Stock Exchange. Around 133 stocks remained unchanged.

Volatility as measured by the India VIX was down 5.7% at 14.20. It hit a day’s high of 15.58 and low of 13.87.

Stock Buzzers

The Jet Airways scrip rallied by 10% to close at Rs 630 per share after Abu Dhabi-based Etihad Airways said it is acquiring 24% stake in the company. Shares of rival SpiceJet too rallied by 12% to close at Rs 34.9 per share.

Idea Cellular gained 2% to close at Rs117 on the National Stock Exchange ahead of its Q4 (January-March) results expected later today.