Market Commentary
 

Market Activity: Share indices rose nearly 2% as firm cues from overseas markets helped investors shrug off Thursday’s 50-basis-point hike in banks’ cash reserve ratio. 

At 10.15AM, Sensex was at 16765.49, up 284.29 points or 1.7%. Nifty was at 5043.90, up 85.85 points or 1.7%. 

All Sensex and Nifty shares rose.  Interest rate sensitive sectors such as banking, realty and auto were resilient to the CRR hike. Housing Development Finance Corp gained 4%, while DLF was up 2%. Technology shares extended gained after Wipro and Satyam Computer Services‘ Jan-Mar earnings. Wipro was up 4% and Tata Consultancy Services gained 3%. Satyam Computer was up over 1%. Titagarh Wagons listed at its issue price of Rs 540 on NSE. The stock was trading at Rs 69.

In the mid trading session, indices were up over 1% but off the 2% high made earlier in the session on some profit taking. At 1.15PM, Sensex was at 16676.62, up 195.42 points, or 1.2%. Nifty was at 5024.45, up 65.80 points, or 1.3%. Firm trend in Asian markets and optimism ahead of Reliance Industries’ Jan-Mar earnings helped sentiment here. However, most key European markets opened slightly weak, with the exception of FTSE 100 that was trading up 0.3%. Shares of metal and capital goods companies were top gainers on Nifty. Tata Steel was up 5.5% and Larsen & Toubro gained over 2%, while ABB was up 1%. Technology shares retreated as the rupee rose against the dollar. Satyam Computer Services and Infosys Technologies fell 1% each. Zee Entertainment Enterprises, down 2.5%, and GAIL, down 1%, were other major Nifty laggards.   

Share indices ended nearly 2% up in line with other key Asian markets, with Nifty ending above 5000 for the first time since the Union Budget on Feb 29. Market did not react to the 50-basis-point hike in banks’ cash reserve ratio as it was factored into share prices. Sensex ended at 16739.33, up 258.13 points. Nifty ended at 5037.00, up 78.60 points. Capital goods and bank shares were top gainers on Nifty. ABB ended up 5% and HDFC Bank was up 4%. Zee Entertainment Enterprises down 4%, and Satyam Computer Services down 2%, were the worst hit on Nifty.    

Exchange Traded Volumes

  Sector Activity : 

Tech stocks ended down with exception: Satyam closed down Rs 459 with volumes of Rs 320.53 crs, Infosys closed down at Rs 1645.80 with volumes of Rs 306.46 crs, HCL Tech closed up at Rs 274.30 with volumes of Rs 102.19 crs, and TCS closed down at Rs 993.40 with volumes of Rs 85.49 crs.

Pharma stocks showed positive trend with exception: Orchid Chemical closed down at Rs 249.75 with volumes of Rs 523.28 crs, Ranbaxy closed up at Rs 499.40 with volumes of Rs 96.51 crs, Sun Pharma closed up at Rs 1328.55 with volumes of Rs 68.30 crs, and Cipla closed up at Rs 225.80 with volumes of Rs 25.04 crs.

Banking stocks hogged the limelight: In the Public Sector SBI Bank closed up at Rs 1741 with volumes Rs 186.33 crs & Bank of India closed up at Rs 334.75 with volumes Rs 73.91 crs. In the Private sector Axis Bank closed up at Rs 881.55 with volume of Rs 290.81 crs & ICICI Bank closed up at Rs 864.25 with volumes of Rs 281.09 crs.

Auto Stocks witnessed mixed trend: Tata Motors closed up at Rs 622.05 with volumes of Rs 22.52 crs & M&M closed down at Rs 637 with volumes of Rs 12.21 crs. While in the 2 wheeler segment stocks, Bajaj Holding closed down at Rs 687.50 with volumes of Rs 10.23 crs, TVS Motors closed up at Rs 39.25 with volumes of Rs 9.45 crs.

Cement Stocks ended positive: India Cement closed up at Rs 186.25 with volumes of Rs 32.89 crs, ACC closed up at Rs 801.15 with volumes of Rs 18.07 crs, Ambuja Cement closed up at Rs 113.60 with volumes of Rs 7.15 crs and Birla Jute closed up at Rs 208.45 with volumes of Rs 3.96 crs.               

Nifty ended at 5037 up by 79 points

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