The market surged post noon on the back of cash buying in auto, oil and gas, and consumer durable stocks. Bulls will take heart that the Nifty has managed to close above the 6,100 mark.
However, things didn’t look so rosy when the markets opened for trade on this gloomy, humid morning. The market opened with a positive gap but profit booking soon set in. The Sensex fell below the psychological 20,000 mark.
But buying in counters like Hero MotoCorp (on a depreciating yen), Coal India (post its better-than-expected Q4 FY13 results and price hike) and BHEL helped the market end near the day’s high.
The Sensex closed up 130.05 points at 20,160.82 while the Nifty ended at 6,111.25 up 28.10 points.
On the futures and options front, the positive momentum seen on Monday continued with long rollovers in major indices like the Nifty and Bank Nifty.
The gainers pack was led by Reliance Industries, TCS, Wipro, Infosys, Coal India, BHEL, Bharti Airtel, ONGC, Bajaj Auto, Maruti Suzuki, Tata Motors, ICICI Bank, Dr Reddy’s Laboratories and HDFC Bank while Sun Pharmaceutical, SBI, Sterlite Industries, Tata Power, HDFC, L&T, Hindalco Industries and Hindustan Unilever lost out.
Among sectors, IT, realty, power, consumer durables, auto, oil and gas, power, capital goods, and FMCG led while healthcare and banking disappointed.
The advance-decline ratio favoured the bears with 1,212 stocks declining against 1,142 advances on the BSE. Around 163 stocks remained unchanged.
Volatility, as measured by India VIX, was up 1% at 17.28. It hit a day’s high of 17.62 and low of 16.63.
Stocks in News:
Reliance Industries is up 1.8% at Rs. 843.5 per share in trade today. The stock has surged 8% in the last three trading sessions.
Amar Ambani, Head of Research at IIFL, advises investors to buy India’s largest private refiner with a nine-month target price of Rs. 930 per share. “The huge gas discovery in KG-D6 has improved the stock’s prospects. More such announcements are expected over the next couple of quarters with further investments planned in the block.”
Financial Technologies gained 6.9% at Rs. 855.85 per share after the company initiated talks with private equity funds to sell a 6% stake in Indian Energy Exchange. The move will help the company pare down its stake to 25% inline with the limits prescribed by the Central Electricity Regulatory Commission.
Coal India closed up 2.9% at Rs. 323 per share after the state-run miner reported a 35% rise in its Q4 FY13 net profit of Rs. 54.14bn as compared to Rs. 40.13bn year-on-year.
Sun Pharmaceutical ended down 1.4% at Rs. 999 per share ahead of its Q4 FY13 numbers. The company has declared a dividend of Rs. 5 for FY13 and a 1:1 bonus issue.
Essar Shipping surged 9.7% at Rs. 22.65 per share after the company reported a Q4 FY13 net profit of Rs. 35.80cr as against Rs. 36.83cr last year.