Experts were surprised by the rally. It was expected that there will be some amount of profit booking or consolidation. Even indices too were in consolidation mode in morning trade but post the noon trade, market put on the fourth gear and surprised everyone by crossing the 5900 mark on the Nifty - near to three months high. The 50-share NSE Nifty rallied 82 points, to close at 5,908, supported by 40 stocks out of 50.
Experts, who were talking about the correction two weeks back, were turned bullish on the market and talking about the 6,000 mark on the Nifty. The rally, which we have been seeing since March 22nd, was largely driven by FIIs - could be eyeing earnings for the year ended FY11. FIIs have bought more than USD 2 billion worth of shares in last 10 days. The 30-share BSE Sensex gained 281 points, to settle at 19,701. Broader markets continued to outshine - the BSE Midcap Index went up 1.7% and Smallcap up 2.8%.
On the corporate front, Shriram Transport Finance shares were up after Singapore-based Temasek Holdings was looking to acquire 10-14% of the company, through a partial buy-out of TPG Capital's stake.
Bajaj Auto Ltd. mentioned that it had a record year in FY11 with total vehicle sales, motorcycle sales, three-wheeler sales and exports all clocking all-time high volumes.
The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 3,535, shares advanced were 2,192 while 471 shares declined and 872 were unchanged.
Benchmarks continued to move close to psychological resistance levels and it seemed investors had resumed buying after a one-day break.
Bombay Stock Exchange's Sensex was at 19645.90, up 225.51 points.
Meanwhile on the news front there were couple of developments. Divi'S lab clarified that news item pertaining to the company stated that it was on the lookout for an acquisition was not true. Divi'S lab is not looking for any acquisition opportunities at this time.
BHEL announced its flash result on the performance of the company for the FY11. Its net profit is up by approximately 40 per cent year on year.
Fortis announced that it has now expanded its cardiac expertise in Sri Lanka alo.
SSWL bagged repeat export order for more than 30,000 wheels from KFZ, Austria a part of the larger Alcar Group. The business is valued at Euro 0.3 million for supplies in 2011.
Indian equity benchmarks started with an unbeat on the first day of the week after lateral movement in Friday. The rally is supported by positive global cues. With reports and improvemed numbers in US economy -- technology, private banking and healthcare companies' shares recieved buyers' interest.
Brent crude was hovering around USD 119 a barrel but investors seemed to not pay attention to it.
Among frontliners, Wipro, Hero Honda, HDFC Bank, ICICI Bank, Infosys, TCS, Sun Pharma, Ranbaxy Labs, SAIL, Hindalco, JSPL, Ambuja Cements, SBI, Bajaj Auto and ACC were leading the markets higher. Wipro rallied 2% as company is going to buy global oil & gas tech info arm of SAIC for USD 150 million.
The 50-share NSE Nifty was trading at 5,852, up 26 points and the 30-share NSE Nifty rose 97 points to 19,517, amid volatility. The CNX Midcap went up 40 points to 8169 and Nifty Junior gained 79 points at 11,440. About 731 shares advanced as against 223 shares declined on the National Stock Exchange.
Two interesting deals to be informed about were -- Laffan petrochemical being acquired by Huntsman, and the announcement by United Spirits purchase of Sovereign Distilleries.