A relief rally took Nifty pass 4,900. Sensex gains 500 points

Commentary

oi-Shoaib MD

By Shoaib Md

Published: Monday, August 29, 2011, 16:51 [IST]

On August 29, 2011. This was the third bggest rally in the year 2011.

The BSE benchmark went up by 567.50 and closed at the level of 16,416.33; this was a rally of 3.58%. NSE Nifty too went up by 3.62% or 171.80 points to 4,919.60 level. Positive global cues helped the indices climb up.

On August 26, 2011 Federal Reserve Chairman Ben Bernanke stated that the there were other tools to stimulate the economy if necessary. with his speech he instilled confidence for sure.

Among the sectoral indices of BSE, it was IT which led the rally with an increase of 5.06%. Metal, Realty, TECk, BankEx and CG (Consumer Goods) all increase beetween 4-4.63%. The laggard among the entire sector was Health Care with 0.93%.

In the last leg of trading, among the 30-stocks comprising Sensex, TCS went up by 7.32% followed by jai prakash Associates at 6.92%. Meanwhile the two stocks which fell in the index was ONGC (-1.10%) and Maruti Suzuki (-0.02%).

On the NSE Nifty also the biggest loser was ONGC (-1.42) and Maruti Suzuki (-0.09). In terms of volumes Unitech was the most traded stocks in the National Stock Exchange with volumes of 4.85 lakh.

Banking stocks maintained their uptrend after RBI released draft guidelines for new banking licenses in late trade. ICICI Bank, HDFC Bank, SBI and HDFC gained 2.7-4.7%. Kotak Mahindra Bank shot up 6.5%.

Midcaps like Bajaj Finserv, Sujana Towers, IFCI, TV18 Broadcast and IVRCL moved up 9-14.4%.

4.25 p.m.

Nifty crosses 4,900 and Sensex gains 500 points

Nifty went up by 3.25% to 4,901.90 levels, representing an increase of 154.10 points. Among the Nifty stocks, the biggest gainers was Reliance Capital (went up by 8.89%) and Rcom (7.89%).

Meanwhile Sensex went up by 500 points to 16,349.01 representing a 3.16%. Among the Sensex stocks, Jindal Steel went up by 6.30% i.e. by Rs 29.10 and TCS increased 5.96% i.e. Rs 56.55.

On both the indices, Sensex and Nifty, there were two stocks which have lost Maruti Suzuki and ONGC. On the NSE one there were two other stocks in the negative zone namely Ranbaxy and Sun Pharma.

The BSE Realty surged 5%, well above its peer indices. All sectors were trading in the green.

Unitech got a boost in the arm after CBI told 2G trial court that 'no money trail found in Unitech's case.'

Technology stocks were consistently seeing huge buying interest; respective index jumped 4.5%. Metal, Bank, Capital Goods, Oil & Gas and Auto indices were up 2.5-3.5%. Among largecaps, Jindal Steel, Cairn India, HCL Tech, TCS and Kotak Mahindra Bank rallied.

2.11 p.m.

Markets upbeat. TCS and Jindal Steel up 5% each

Stock indices continued with their enthusiasm as Sensex climbed 2.37% to 16,223.93 meanwhile Nifty went up by 2.41% to 4,862 levels.

The BSE IT went up by 4% as 70% of the weightage rests with Infosys and TCS in the index that went up by 3.55% and 5.50% respectively.

There were two stocks which went up by more than 5% of the 30 stock-index, Sensex, TCS and Jindal Steel.

Among the Sensex stocks only Maruti Suzuki and ONGC fell by 1.71% and 0.83% respectively.

Asian markets Hang Seng, Straits Times and Taiwan gained. And Kospi jumped nearly 3%. Nikkei rose 0.5% while Shanghai fell 1%.

Midcaps like Sujana Towers, IVRCL, Arvind, Bajaj Hindusthan and Anant Raj Industries were up 5-8%. However, Chennai Petroleum, Marico, SKS Microfinance, Infotech Enterprises and Birla Corp slipped 2-5%.

12.17 p.m.

Benchmark indices recover. Sensex above 16,000.

Indian equity benchmarks bounced back sharply following positive global cues. Experts term it as a technical pullback. Banking and technology stocks were leading the market.

The benchmark of the Bombay Stock Exchange, Sensex has gone above by 2.27% or 360.20 points, it is trading at 16,209 levels.

Meanwhile the benchmark of the National Stock Exchange, S&P CNX Nifty went up by 2.21% or 105 points at 4,852.90 level.

Among the sectoral index of the BSE, IT index increased by 3.29%. It was trading at 4,875.29. TECk, Metal, Bankex, Realty and Oil & Gas had increased between 2-3%. Meanwhile, Consumer Durables (CD), Consumer Goods (CG), Auto, Power, PSU and HealthCare increased between 1-2%. The laggard among the sectoral indices was FMCG which increased only by 0.57%.

Among large-caps it was stock like Jai prakash Associates, Reliance Capital, Reliance Communications, SAIL, JSPL, SBI, ICICI Bank, Infosys, Wipro, TCS, Reliance Industries and L&T that were leading the equity-market. However companies such as Maruti, Sesa Goa and ITC saw selling pressure on the stock.

GVK Power, IVRCL and Punj Lloyd led the infrastructure space with gains of 2-3%. On the banking front, it was Yes Bank, Dena Bank, Alok Industries which pushed the market up. Inclusive of banks, Arvind, Welspun Corp and S Kumars rallied 2-4%. Indiabulls Real, HDIL and Sobha Developers gained 1-3% from the realty space. While, JSW Steel rose 3%. Mahindra Satyam surged 4%.

10.49 a.m.