Positive global cues boost the indices
The market closed higher on firm global cues and sustained buying in blue chips. The benchmark may see range-bound movement before a correction sets in. The National Stock Exchange (NSE) saw a lower volume of 50.16 crore shares. Bulls don’t have much of a conviction at the current levels.
The market witnessed a gap up opening on positive global cues. Markets in Asia were higher in morning trade on the back of better-than-expected US payroll data and easing of concerns relating to the Eurozone debt crisis. The Nifty opened 45 points higher at 5,261 and the Sensex started the day at 17,313, a gain of 115 points over its previous close.
Private sector oil and gas major Reliance Industries (RIL) was the top gainer on the Sensex and Nifty on reports that the company has agreed to share accounting information relating to the KG D6 gas block, under the terms of the production sharing contract, with the national auditor. The oil ministry is also expected to the company’s annual investment plans for the gas block, which were pending for the past two years.
The market gave up a small part of its gains in noon trade on profit booking. However, the upmove continued after a brief pause as the European markets were in the green on optimism from the European Central Bank, which reiterated its willingness to resolve the Eurozone crisis.
The benchmarks hit their highs in the post-noon session on sustained buying in blue chips. At the highs, the Nifty rose to 5,293 and the Sensex surged to 17,452.
The market closed off the high, snapping its two-day losing streak. The Nifty gained 67 points (1.28%) to settle at 5,283 and the Sensex climbed 215 points (1.25%) to finish trade at 17,413.
The advance-decline ratio on the NSE was negative at 926:563.
Among the broader markets, the BSE Mid-cap index gained 0.53% and the BSE Small-cap index climbed 0.79%.
In the sectoral space, BSE Oil & Gas (up 3.03%); BSE Auto (up 1.70%); BSE Bankex (up 1.38%); BSE Capital Goods (up 1.37%) and BSE Realty (up 1.24%), were the top gainers. On the other hand, BSE Fast Moving Consumer Goods (down 0.37%); BSE IT (down 0.12%) and BSE TECk (down 0.09%) were the losers.
The key gainers on the Sensex were Reliance Industries (up 5.71%); Tata Motors (up 3.51%); GAIL India (up 2.49%); HDFC Bank (up 1.95%) and Tata Steel (up 1.85%). Dr Reddy’s Laboratories (down 0.86%); TCS (down 0.69%); Wipro (down 0.59%); NTPC (down 0.54%) and ITC (down 0.42%) were the main losers.
The top two A Group gainers on the BSE were—RIL (up 5.71%) and Rural Electrification Corporation (up 5.25%).
The top two A Group losers on the BSE were—Britannia Industries (down 2.95%) and Godrej Consumer Products (down 2.78%).
The top two B Group gainers on the BSE were—Winsome Textiles (up 20%) and Reliance MediaWorks (up 20%).
The top two B Group losers on the BSE were—Tricom Fruit Products (down 19.88%) and Venus Power Ventures (down 19.80%).
The top performers on the Nifty were RIL (up 5.51%); Tata Motors (up 3.67%); Jaiprakash Associates (up 3.07%); GAIL (up 2.74%) and Kotak Mahindra Bank (up 2.36%). The top laggards on the index were BPCL (down 3.02%); Wipro (down 0.94%); Dr Reddy’s (down 0.92%); TCS (down 0.88%) and ITC (down 0.62%).
Markets in Asia settled in the green on positive data from the US and assurance that European leaders would work towards easing the debt problems in the continent. Meanwhile, Indonesia’s gross domestic product growth in the June quarter was 6.4% from a year earlier against 6.3% in the first quarter, helped by domestic consumption and investment. After China, Indonesia’s growth is also the highest among the world’s leading emerging economies.
The Shanghai Composite advanced 1.04%; the Hang Seng surged 1.69%; the Jakarta Composite rose 0.14%; the KLSE Composite gained 0.27%; the Nikkei 225 jumped 2%; the Seoul Composite climbed 2.01% and the Taiwan Weighted settled 0.95% higher.
At the time of writing, key European indices were up between 0.20% and 0.63% and the US stock futures were trading with marginal gains.
Back home, foreign institutional investors were net buyers of shares totalling Rs208.69 crore on Friday while domestic institutional investors were net sellers of equities amounting to Rs434.64 crore.
Engineers India (EIL) today said it has bagged a project management consultancy contract from the 2,000 km Mallavaram-Bhopal-Bhilwara-Vijaipur natural gas pipeline project. GSPL India Transco, the Gandhinagar-based firm which would be implementing the project, has awarded the project management consultancy services contract to EIL, the state-owned firm said in a statement. EIL gained 0.19% to settle at Rs237.80 on the NSE.
Sadbhav Engineering has informed the BSE that it has been declared successful bidder for five projects totalling Rs378.28 crore by Sardar Sarovar Narmada Nigam, Gujarat. The contracts are for construction of canal and allied works, including operation and maintenance. The stock gained 1.66% to close at Rs134.85 on the NSE.
Bhushan Steel hopes to sign a memorandum of understanding with the Odisha government in the current quarter, which will enable the company mining 3.5 million tonnes of iron ore a year for its new steel projects. The company is building a 2.5 million tonne steel plant which is expected to get commissioned in the third quarter of this year. The stock gained 0.33% to settle at Rs471.70 on the NSE.