Post-Market: Market registers a turnaround trade led by buying in Oil & Gas stocks. Analysis for Jun 17, 2014

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Driven by value-buying in the upstream Oil & Gas companies, banking and Capital Goods stocks, Indian markets were able to recoup losses and edge up to close 331 points higher. Buying interest was seen in the Oil & Gas sector on expectation of margin expansion after a surge in international oil prices. Shares of ONGC gained 4.43 percent while Reliance closed 2.6 percent higher. Firm opening of European markets during late noon trading session also boosted the local investors" sentiment.

In stock specific news, shares of Idea Cellular inched up ~4% after the Reserve Bank of India announced that foreign institutional investors (FIIs) can purchase up to 49% stake from 24% earlier.

At closing, BSE SENSEX was at 25521.19 up by 330.71 points or by 1.31 percent and then NSE Nifty was at 7631.7 up by 98.15 points or by 1.3 percent.

The BSE MIDCAP was at 9101.47 up by 134.59 points or by 1.5 percent while the BSE SMLCAP was at 9901.56 up by 197.17 points or by 2.03 percent. The BSE Sensex touched intraday high of 25545.88 and intraday low of 25104.5 The NSE Nifty touched intraday high of 7637.6 and intraday low of 7509.25.

The top gainers of the BSE Sensex pack were Oil And Natural Gas Corporation Ltd. (Rs. 444.55,+4.07%), Axis Bank Ltd. (Rs. 1839.45,+3.79%), State Bank of India (Rs. 2654.40,+2.91%), Coal India Ltd. (Rs. 400.65,+2.89%), Bharat Heavy Electricals Ltd. (Rs. 247.95,+2.84%), among others.

The top gainers of the NSE Nifty pack were Oil And Natural Gas Corporation Ltd. (Rs. 445.10,+4.26%), Asian Paints Ltd. (Rs. 560.60,+3.84%), Axis Bank Ltd. (Rs. 1839.60,+3.75%), Punjab National Bank (Rs. 979.95,+3.52%), IndusInd Bank Ltd. (Rs. 552.35,+3.35%), among others.

On the sectoral front, BSE Oil & Gas index was at 11690.27 up by 324.86 points and BSE_PSU index was at 8685.6 up by 231.72 points.

The Market breadth, indicating the overall strength of the market, was positive. On BSE out of total shares traded 3246, shares advanced were 2126 while 1000 shares declined and 120 were unchanged.

Asian stocks turned in a mixed performance, as violence in Iraq showed no signs of abating and the International Monetary Fund cut its growth forecast for the U.S. economy this year to 2 percent from 2.8 percent predicted in April, citing a harsh winter and problems in the housing market. Investors waited for the outcome of Federal Reserve meeting and minutes of the Bank of England's June meeting due on Wednesday night for further direction.

Japanese shares rebounded from a sharp fall in the previous session after Prime Minister Shinzo Abe introduced new policy measures to improve Japan's growth prospects, with plans to cut corporate income taxes and revamp the Government Pension Investment Fund that is dominated by Japanese government bonds. The benchmark Nikkei average rose 0.29 percent to 14,975.97 after falling 1.1 percent the previous day. Chinese shares fell notably by 0.92 per cent, dragged down by banks, brokerages and property developers after official data showed foreign direct investment into China fell 6.7 per cent annually to $8.6 billion in May. Hong Kong's Hang Seng Index fell 0.42 percent to 23,203.59, as investors awaited the outcome of the Fed policy meeting on Wednesday amid expectations the U.S. central bank will cut its bond-purchase program by another $10 billion.

Story first published: Tuesday, June 17, 2014, 16:48 [IST]
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