Market Commentary

Market Activity: Key share indices were up 0.5%, after having risen nearly 1% earlier on gains in power, metal and realty companies.

At 10.15AM, Sensex was 16075.07, up 59.51 points, or 0.5%, from Thursday. Nifty was at 4852.45, up 22.20 points, or 0.4%.

The biggest Nifty gainers were Suzlon Energy, up 5%, and Tata Steel, up over 6%. Among laggards, Hindustan Unilever fell 2% and ICICI Bank was down 3%. Tata Motors remained weak for the second straight session as its buy of Jaguar and Land Rover brands from Ford Motor Co at $2.3 bn will weigh on the company’s balance sheet in the short-term. CNX Mid-cap index rose 1.2% and BSE Small-cap was up nearly 2%. ONGC was down over 3% on reports the company is on the verge of reporting losses on every barrel it sells due to higher subsidy burden.

In the mid trading session, indices recouped losses after falling nearly 1% after inflation for the week to Mar 15 rose sharply above expectations to 6.68% from 5.92% a week ago. At 12.35PM, Sensex was at 16063.64, up 48.08 points, or 0.3%, from Thursday. Nifty was at 4847.10, up 17.15 points, or 0.3%. Bank shares fell amid concern high inflation thwarts the possibility of an interest rate cut by the Reserve Bank of India. ICICI Bank and HDFC Bank, down 3% and 4%, respectively, were the worst hit on Nifty. Gainers included Tata Steel and Suzlon Energy, up around 5% each.

Key share indices ended up over 2% on short covering in some counters and value buying in others. A positive trend in Asian and European shares also helped investors shrug off a rise in inflation rate to above 6%. Sensex ended at 16371.29, up 355.73 points or 2.2% from Thursday. Nifty ended at 4942, up 111.75 points or 2.3%. Investors lapped up shares of metal, capital goods and IT companies. All BSE sector indices gained. CNX Mid-cap index ended up 3.5% and BSE Small-cap rose 5%. Suzlon Energy, up 11.5%, was the biggest Nifty gainer on short covering. HDFC Bank dropped 2% and Tata Motors was down 2%.

Sector Activity :

Tech stocks showed up trend: Infosys closed up Rs 1521.20 with volumes of Rs 220.59 crs, Satyam closed up at Rs 408.65 with volumes of Rs 86.29 crs, TCS closed up at Rs 871.05 with volumes of Rs 78.63 crs, and Educomp closed up at Rs 3941.60 with volumes of Rs 68.81 crs.

Pharma stocks witnessed positivity with exception: Orchid Chemical closed up at Rs 144.40 with volumes of Rs 135.37 crs, Ranbaxy closed up at Rs 438.65 with volumes of Rs 62.72 crs, Dr Reddy closed up at Rs 592.60 with volumes of Rs 30.38 crs, and Sun Pharma closed down at Rs 1252.40 with volumes of Rs 20.86 crs.

Banking stocks ended up with exception: In the Public Sector SBI Bank closed up at Rs 1677.80 with volumes Rs 211.46 crs & PNB closed up at Rs 530.30 with volumes Rs 43.08 crs. In the Private sector ICICI Bank closed up at Rs 835.50 with volume of Rs 481.74 crs & Kotak Bank closed down at Rs 673.50 with volumes of Rs 101.61 crs.

Auto Stocks closed positive with exception: Tata Motors closed down at Rs 646.05 with volumes of Rs 148.20 crs & M&M closed up at Rs 692.50 with volumes of Rs 24.75 crs. While in the 2 wheeler segment stocks, Bajaj Holding closed up at Rs 687.50 with volumes of Rs 56.44 crs, Hero Honda closed up at Rs 700.30 with volumes of Rs 11.07 crs.

Cement Stocks showed up trend with exception: ACC closed up at Rs 838.55 with volumes of Rs 38.95 crs, India Cement closed down at Rs 194 with volumes of Rs 22.90 crs, Ambuja Cement closed up at Rs 123.70 with volumes of Rs 7.46 crs and Madras Cement closed up at Rs 3388.75 with volumes of Rs 3.04 crs.

Nifty ended at 4942 up by 112 points

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