Mkts end higher +122 pts; metal, oil, banks, CG stks gain

Mkts end higher; metal, oil, banks, CG stks gain
Short covering ahead of F&O expiry props mkt

Markets have rebounded with small rally in today's session after sharp fall seen on Tuesday and ended higher though they were off day's high. Benchmark indices saw some volatility as well ahead of F&O expiry for the month of September.
Buying was seen in metal, banking, oil, power and capital goods stocks. However, technology stocks remained under pressure throughout the day.
The Sensex rose 122.21 points or 0.9%, to settle at 13,692.52. The Nifty had managed to cross 4200 during the session but failed to sustain above that level. It closed at 4161.25, down 34.35 points or 0.83%. Both indices lost 148.29 points and 46.7 points from day's high of 13,840.81 and 4207.95, respectively.
In the F&O segment, rollovers were low; short rollovers failed to pick up. Nifty rollover was at 43.2% versus 56% and marketwide rollover stood at 50.4% versus 56%. Nifty October futures ended at a 31-point premium and September Futures ended at 28.75-point premium. Fresh long build up was seen in metals stocks; Sterlite October futures added 17 lakh shares in Open Interest. Fresh long build up was also seen in banks.
Among the frontliners, Sterlite Inds rose 8.26%, HDFC Bank 3.18%, Tata Steel 2.77%, Reliance Infra 2.22%, M&M 2.17% and NALCO 5.61%.
BSE Metal Index outperformed other indices, it rose 2.19% or 217.75 points to 10,142.29, led by Sterlite Industries, NALCO, Tata Steel, JindalStainless, Jindal Saw and Hindalco.
Sterlite Industries surged over 15% in an intraday trade, as Vedanta decided to drop its restructuring plan given the changes in global financial markets and investor feedback. However, the company said that it will remain committed to streamlining corporate structure.
Sterlite Industries closed at Rs 487.10, up Rs 37.15 or 8.26%. It traded with volumes of 2,769,125 shares, higher by 135.14% as compared to its 5-day average of 1,177,637 shares.
Madras Aluminium Company (MALCO) locked at 5% upper circuit. There were pending buy orders of 26,889 shares. The stock traded with volumes of 120,694 shares, higher by 137.91% as compared to its 5-day average of 50,730 shares.
Meanwhile, Macquarie feels the announcement on Vedanta’s dropping its restructuring plans is a welcome relief to the shareholders of Sterlite. It maintains a buy on Sterlite. It also believes that the holding structure was not conducive for future growth of the company.
Oil & Gas Index jumped up by 113.87 points or 1.22% to 9,435.85. Reliance Inds, HPCL, IOC, Cairn India, ONGC and BPCL gained 1-1.5%. Crude was hovering around USD 107-108 to a barrel on the NYMEX.
Bankex gained 82.23 points or 1.21%, to close at 6,886.65. IndusInd Bank rose 5%. HDFC Bank, Axis Bank and Allahabad Bank were up 2-3%. Kotak Mahindra, Karnataka Bank and IDBI Bank were up 1-1.7%. Andhra Bank, SBI and ICICI Bank rose around 0.5%.
Power stocks also charged up. Reliance Infrastructure, Torrent Power, GMR Infra, Power Grid Corp, CESC and Tata Power were gainers. Index rose by 26.92 points or 1.1% to 2,473.39.
Capital Goods stocks like BHEL, Alstom Projects, Siemens, BEML, Havells India, Praj Industries and L&T rose 1-1.9%. Index went up by 122 points or 1.09% to 11,340.80. L&T has bagged the order worth Rs 5,000 crore. The stock rose nearly 1%.
FMCG Index was up by 0.35%, to settle at 2,189.68. Britannia, United Spirits, HUL, Dabur India and Marico were gainers.
Realty Index rose marginally by 0.34% to 3,916.98. Akruti City was up nearly 4% as the stock was in F&O curb. Anant Raj Inds, Ansal Properties, Omaxe, Peninsula Land, Mahindra Life, DLF and Parsvnath gained 1-2%.
Healthcare Index closed up by 0.13% at 3,876.11. Auto Index ended flat at 3,849.27. Aventis Pharma, Piramal Health, Fortis Health, Ranbaxy Labs, Cipla and Sun Pharma were up 1.5-2.5%.
However, technology stocks were caught in selling pressure. IT Index plunged 37.94 points or 1.10%, to settle at 3,417.11; it lost nearly 3% during an intraday trade. Wipro lost over 5%. TCS, Infosys and Satyam fell 2-3%.
BSE Midcap was up by 0.26% to 5,126.78 and Small Cap Index gained just 0.14%, to close at 6,101.51.
Market breadth was slightly in favour of advances; about 1481 shares have advanced while 1430 shares declined. Nearly 267 shares remained unchanged.
Total turnover has seen improvement due to F&O segment, stood at Rs 83,171.33 crore. This includes Rs 11,812.96 crore from NSE Cash segment, Rs 67,051.71 crore from NSE F&O and balance Rs 4,306.66 crore from BSE Cash segment.
On the global front, Asian markets ended marginally higher. Shanghai rose 0.70%, Hang Seng 0.47%, Jakarta Composite 0.56%, Nikkei 0.2%, Straits Times 0.04% and Kospi 0.99%. However, Taiwan Weighted 0.8%.
European markets were trading lower. FTSE was down 0.3%, CAC -0.36% and DAX -0.13%, at 4:30 pm. Global concerns are not yet over even after bailout package announced. There are news that bailout package might be limited and may take longer than expected time to pass. FBI is likely to probe Fannie, Freddie, AIG, Lehman Brothers for possible accounting misstatements. Henry Paulson, the US Treasury Secretary, and Ben Bernanke, the Chairman of the Federal Reserve will be appearing before the House Financial Services Committee.
Dow Jones Futures was up 80 points and Nasdaq Futures rose 25 points.
Portfolio Manager PN Vijay feels that if the American system does not start working with the USD 700 billion bailout then there could bee shocks coming in from the credit markets. Global cues will set the trend for India through flows, he said.

F&O Snapshot
Rollovers Low; Short rollovers fail to pick up
Rollovers At D-1 Expiry: Nifty Rolovers at 43.2% Vs 56%, Marketwide Rollovers at 50.4 % Vs 56%
Nifty Oct futures end at a 31pt premium; Sept Futures at a 28.75 pt premium
Fresh Long build up in Metals stocks, Sterlite Oct futures add 17 lakh shares in OI
Fresh long build up seen in banks; IT stocks continue too witness selling pressure
NSE F&O Turnover at Rs 67051.71 Vs 68368.65 on Tuesday

Rollovers
Market Wide: 50.40%
Nifty: 43.20%
Index Heavyweight Rollovers
Reliance Ind 42% SBI 45%
ICICI Bank 46% DLF 46%
Sterlite 46%Infosys 41%

Momemtum stocks
JP Associates 50% Renuka 38%
IFCI 54% TTML 52%
Ispat 50%

Fresh Longs
Sterlite, Tata Steeel, Nalco, HDFC Bank, IDBI Bank
Short Covering
Chambal Fert...

Source:MC