KRC - Market Activity Update

Key indices rose 1% early today as investors resumed buying after the slide Wednesday and as Asian markets were marginally higher. Gains in Reliance Industries also aided the rise. At 10:21AM, Sensex was 12643.99, up 64.24 points or 0.5%. Nifty was at 3645.80, up 18.95 points or 0.5%. On the BSE, there were 591 advances and 878 declines. The biggest Nifty gainers were GACL, up 2% at Rs 106.Gujarat Ambuja Cements rose on reports the company has got Rs 3.33 bn for the sale of its 2-acre Kalina plot to Orbit Corp., HDFC Bank, up 1.5% at Rs 929, and Reliance Industries, up 1.5% at Rs 1,309. Reliance Industries was up as the company board Saturday will consider merging Indian Petrochemicals Corp. at a likely share swap of 5-6 shares of IPCL for 1 RIL share. IPCL was up 5.5% at Rs 244. Among losers, ACC was down 3.2% at Rs 788, and Hero Honda Motors, down 0.7% at Rs 662. Bajaj Auto was up 1% and Hero Honda Motors fell, as Bajaj Auto is likely to slash prices of its 100 cc Platina by around Rs 3,000 soon. Debutant Indus Fila listed today on the BSE at Rs 145 against an issue price of Rs 170. M&M shares were down 1% at Rs 750.50 as analysts see the company losing out to Ashok Leyland in the race to acquire Punjab Tractors.



In the mid trading session, indices surged over 2% tracking the firm trend in Asian markets and gains in some index heavyweights. At around 1 PM. the Sensex was at 12846.48 up 266.73 points, or 2.1%. Nifty was at 3710.65 up 83.80 points, or 2.3%. ONGC was up 4% with Petroleum Minister Deora today announcing the company was setting up a Greenfield refinery in Barmer. The Nifty top gainers were IPCL and SAIL. SAIL was up 9% at Rs 101 as steel prices are likely to remain firm on talk China has approved part-elimination of iron and steel making capacities to check its economic growth. IPCL rose 15%, on its proposed merger with Reliance Industries. The biggest losers were Zee Telefilms and Dabur India, down 2% each. Hero Honda Motors was down around 1% at Rs 661 on reports rival Bajaj Auto will Saturday cut prices of its 100cc Platina model by the cut will make Platina the cheapest bike in the market. Decent recovery was seen in the cement counters. India Cement, was up 5.6%, GACL, up 4.9%, Grasim, up 4.4%, JP Associate, was up 4%, Prism Cement, up 3.3% and ACC, was up 2% were all up.



Institutional buying and short covering helped Sensex gain nearly 4% today taking at close above 13000. Sensex ended at 13049.35, up 469.60 points or 3.7%. The day's low was 12596.86 and high 13099.83. Nifty ended at 3761.65, up 134.80 points or 3.7%. It moved between a low of 3626.80 and a high of 3779.50 in the session. The combined turnover on both exchanges was Rs 117 bn. CNX Midcap Index ended up 3.7% and S&P CNX 500 Index up 3.9%. Index heavyweight, ONGC ended up 1.9% at Rs 779 after its overseas arm signed an exploration and production-sharing pact with Libya's National Oil for four offshore blocks. A rise in crude oil prices to U.S. $62 a barrel on the New York Mercantile Exchange also aided sentiment for oil explorers. Reliance Industries ended up 3.6% at Rs 1,335, as the company will consider merger of Indian Petrochemicals with self on Saturday. Shares of IPCL also ended up 12.8% at Rs 260. Steel shares were up today as steel prices are likely to remain firm because China is rumoured to have approved part-elimination of iron and steel making capacities to check its economic growth. SAIL ended up 13% at Rs 104; Tata Steel up 3.5% at Rs 428; and JSW Steel up 8% at Rs 445. GACL shares gained 8.7% at Rs 113 on news the company has sold a property in Kalina in Mumbai to developer, Orbit Corp., for Rs 3.3 bn. It is the most expensive land deal in Mumbai. M&M erased losses to end up 0.6% at Rs 766. The stock was down early today as analysts see the company losing out to Ashok Leyland in the race to acquire Punjab Tractors. Among the rare losers today, Zee Entertainment ended down 2.4% at Rs 238; Glaxosmithkline Pharmaceuticals down 1.3% at Rs 1,160; and GAIL down marginally at Rs 271. BPCL ended nearly flat after staying weak after crude oil prices surged.

Tech stocks ended up. Infosys was up at Rs 2135.75 with volumes of Rs 324.99 crs, Satyam was up at Rs 445.80 with volumes of Rs 91.96 crs, Wipro was up at Rs 572.50 with volumes of 83.39, and TCS closed up at Rs 1218.40 with volumes of Rs 69.05 crs.

Pharma stocks ended positive. Ranbaxy was up at Rs 328.45 with volumes of Rs 75.62 crs, Dr Reddy closed up at Rs 668.55 with volumes of Rs 61.96 crs, Orchid Chemical was up at Rs 231.65 with volumes of Rs 20.49 crs, and Glenmark closed up at Rs 559.35 with volumes of Rs 16.97 crs.

Banking stocks saw buying opportunity. In the Public Sector banks SBI closed up at Rs 999.30 with volumes Rs 236.62 crs & Bank Of India closed up at Rs 157.75 with volumes Rs 31.84 crs. In the private sector ICICI Bank closed up at Rs 863 with volume of Rs 129.92 crs & HDFC Bank closed up at Rs 436.10 with volumes of Rs 37.24 crs.

Auto Stocks witnessed positive trend. Tata Motors closed up at Rs 766.85 with volumes of Rs.163.47 crs & M&M closed marginally up at Rs 765.60 with volumes of Rs 42.26 crs. While in the 2 wheeler segment stocks, Baja Auto closed up at Rs 2510.85 with volumes of Rs 72.21 crs & Hero Honda closed up at Rs 674.80 with volumes of Rs 16.69 crs.

Cement Stocks Hogged the Limelight. ACC closed up at Rs 833.15 with volumes of Rs 136.75 crs, GACL closed up at Rs 112.85 with volumes of Rs 133.87 crs, India Cement closed up at Rs 167.10 with volumes of Rs 102.92 crs and Birla Jute closed up at Rs 230 with volumes of Rs 4.24 crs.

Nifty ended at 3761 up by 135 points