Close: Markets up on Bull Power

Market had a firm start and buying was seen from the first hour of the trade itself and continued through out the day in momentum. Buying was seen in Banking, Cement, Automobiles and Energy stocks. The northward journey of the markets continued banking on index heavyweights. Mid caps too were buyers choice for the day. Selling pressure was at its minimum as only few stocks were in Red.

Sensex closed 306 points up at 13487. It was helped up by gains in ICICI Bk (869.25,+5 percent), Satyam (467.6,+4 percent), Cipla (247.7,+4 percent), NTPC (145.55,+4 percent) and HLL (227.4,+4 percent). Restricting the gains were Hero Honda (713.3,-1 percent), SBI (1222.95,0 percent).

HCL technologies Board has recommended a bonus issue of one share for every existing share. The bonus issue is subject to share holders approval and record date is yet to be decided by the company Board. Company has been following high dividend policy from last 3 Yrs and this a significant event as it will enhance enhance the Investor Base and enhance liquidity for the stock. Stock saw gains of 6%.

L&T has bagged two contracts from Chinese Petrochemical Company Sinopec. The value of the contract is 86 Million US $. The company will have to design, manufacture and supply three ethylene oxide reactors, each weighing in excess of 1,000 tonnes. Which are going to be a part of Methyl Ethyl Glycol (MEG) unit in a petrochemical plant. Buying was seen in engineering stocks and the stock closed 2% higher. L&T seems to be having a huge order book but its the valuations which make us cautious.

Technically Speaking: Positive sentiment was there in the market as the market constantly marched Northwards in the positive territory to finally end 306 points up. The rally was ranging between 13334-13144. The advances dominated declines as there were four advances against every decline.