Sensex ends 300 pts up after heavy buying

Sensex ends 300 pts up after heavy buying

Tracking weak global markets, equities opened on a highly negative note on the major Indian bourses this morning. Barring a few stocks from the metal and PSU sectors, stocks from other sectors were seen struggling for support for well over an hour.

However, as the cautious mood gave way to some optimism as the session progressed, key stocks from capital goods, information technology, power and oil stocks started attracting attention. Thereafter, it was a one way trip up north for the benchmark indices Sensex and Nifty in afternoon trade today.

Expectations of brighter days for the power and infrastructure sector post implementation of Indo-US civilian nuclear deal triggered some hectic buying in quite a number of front line stocks this afternoon.

The Sensex, which had slipped by nearly 325 points to 14,032.87 in early trade, ended the session with a gain of 300.94 points or 2.1% at 14,656.69, near its intra-day high of 14,682.33. The Nifty closed with a gain of 80.60 points or 1.86% at 4413.55. The NSE barometer touched a high of 4422.95 and a low of 4235.70 in intra-day trades today.


So sharp were the gains posted by stocks from capital goods, power, PSU, oil and banking sectors that the respective sectoral indices moved up by 3% - 4% today. The IT index ended nearly 3% up. BSE Metal (2.62%) and Realty (2.37%) also ended stronger. Select consumer durables and pharma stocks edged up while auto and FMCG stocks had a sluggish outing.

Jaiprakash Associates flared up by 8.7% on strong buying support today. State Bank of India, which opened on a weak note this morning, rallied sharply in afternoon trade and ended with a handsome gain of 6.05%. HDFC spurted 5.55%.

Reliance Infrastructure (4.75%), BHEL (4.65%), Reliance Industries (4.25%), Wipro (4%), Tata Steel (3.95%), NTPC (3.7%), Infosys Technologies (3.6%), Larsen & Toubro (3.45%), Satyam Computer Services (2.85%), Bharti Airtel (2.5%), Ranbaxy Laboratories (2.15%), DLF (2.15%), Grasim Industries (up nearly 2%) had a bright outing.

ICICI Bank and HDFC Bank rebounded sharply from their lower levels and ended stronger by 1.15% and 1.1% respectively. Tata Consultancy Services and Mahindra & Mahindra closed with modest gains. ONGC and Sterlite Industries ended flat. Reliance Communications (down 12.65%) opened weak and remained so right till the end. Tata Power lost 3.75%. Maruti Suzuki ended 2.5% down at Rs 560.50. Hindustan Unilever (down 1.9%), ACC (down 1.3%) and Tata Motors (down 1.15%) also ended with sharp losses. Hindalco and ITC settled slightly behind their previous closing levels.

Punjab National Bank (up 7.1%) was the biggest gainer from the Nifty pack. Suzlon Energy ended with a gain of a little over 7%. Siemens moved up by around 5%. GAIL India, ABB, HCL Technologies, Unitech, Zee Entertainment, Power Grid Corporation, SAIL, Reliance Petroleum, Dr. Reddy's Laboratories, Sun Pharmaceuticals and BPCL also ended with impressive gains.
HMT, India Infoline, IFCI, Gujarat Minerals, JSW Steel, Indian Bank, Bank of Baroda, Chambal Fertilizers & Chemicals, Bajaj Hindustan, Jindal Saw, Canara Bank, GMR Infrastructure, Jet Airways, Federal Bank, IDFC and Bank of India went up by 6% - 10% today.

Jai Balaji Industries, Prakash Industries, Renuka Sugars, Opto Circuit, Kalpataru Power, Kesoram, Electrosteel Castings, Development Credit Bank, Omaxe and ING Vysya Bank were among the prominent gainers in the midcap space today. The market breadth turned positive in afternoon trade. When the session ended, out of 2732 stocks traded on BSE, 1551 stocks were up in the positive territory and 1108 stocks had eased into the negative zone. 73 stocks ended flat.

Source: Sify