Sensex rises on late buying

Today's major news

Reliance Media World soars on joint venture with CBS Studios; the stock ends 4.96% higher

Steel Strips Wheels wins export orders; the stock closes 1.53% higher

Tantia Constructions builds on new order win; the stock ends 14.29% higher



Global signals

European shares were dragged lower in the early trades by weak oil and mining shares. Heavyweight oil shares fell along with oil prices on worries over US demand.

All the major Asian indices closed in the negative territory except Shanghai Composite and Hang Seng indices.

The US stock index futures point to a marginally lower opening on the Wall Street. The investor may keep an eye on data for Mortgage Market Index for the week ended August 13. While on the earnings’ front, the companies scheduled to report quarterly results include Applied Materials, Limited Brands and Target Corp.

Indian indices

Bulls were back all of a sudden in today’s trade. The domestic markets rose after a report showing factory output in the US jumped twice as much as forecast, which boosted investor confidence. It indicated that global demand will be robust enough to drive corporate earnings growth. The markets gained momentum in the last hour of trade as robust buying was seen in information technology (IT), fast moving consumer goods (FMCG) and metal stocks. The Sensex outperformed the midcap and smallcap indices in today’s session.

Bajaj Corp, which listed today, ended the day at Rs754, up 14% over its issue price of Rs660 per share. Top gainers on the BSE Midcap were GNFC, Chambal Fertilisers, GSFC, State Bank of Mysore and Rallis India up by 6-9%. In the largecap space, Tata Motors, Ranbaxy Laboratories, Hindalco Industries, HDFC Bank and Sun Pharmaceuticals were up by 3-4%. However, index heavyweight Reliance Industries edged lower.

The Sensex started the session 19 points higher at 18068 making that level its day’s low. The index never looked back from that level and traded higher throughout the morning session as the Asian markets pared early losses. In the afternoon session, the Sensex started to trim gains as the European stocks opened lower. However, in the last hour of trade, the index gathered pace to move upwards hitting the day’s high of 18286 owing to tremendous buying witnessed in the index heavyweights and also in IT, FMCG and metal stocks.

At the finishing line, the Sensex signed off at 18257, 208 points higher. The Nifty shut at 5479, 65 points higher.

Bond Market Wrap up: India’s bonds fell, driving 10-year yields to a three-month high, as inflation hovering at almost double the pace of the central bank’s target deters investors. India’s rupee was little changed, after strengthening yesterday the most in two weeks, as exchange data showed overseas investors added to their holdings of local stocks on all but one of the 30 trading days through August 16, 2010.

Market Outlook: US markets will have a break from economic data tonight. For tomorrow’s opening, the markets will be tracking overnight global cues.

Market sentiment

The market breadth was positive as advancing stocks outdid the declining ones. Of the 3,083 stocks traded on the BSE, 1,671 stocks declined whereas 1,272 stocks advanced. Hundred and forty shares traded unchanged.

Sectoral & stock screening

All the 13 sectoral indices shut the session on a positive note except BSE consumer durables (CD) index that closed with marginal losses of 0.20%. Among gainers, BSE information technology (IT) surged by 1.96%, followed by BSE fast moving consumer goods (FMCG) rose by 1.45% and BSE Metal that advanced by 1.43%.

Among 'A' group stocks, Chambal Fertilisers was the topper, up by 6.78%, followed by Moser Baer that rose by 6.66% as Blackstone invests Rs13.5 billion in Moser Baer Projects and Hindalco Industries that jumped by 4.58%. Among losers, Suzlon Energy slid the most by 3.32%, followed by Oriental Bank of Commerce that fell by 2.36% and National Aluminum Company that declined by 2.26%.

Viewing volumes

Wind turbine major - Suzlon Energy was the most traded with over 0.67 crore shares changing hands on the BSE, followed by India's leading enterprise communications service provider - Tulip Telecom (0.50 crore shares), industrial finance company - IFCI (0.45 crore shares), one of the public sector bank - UCO Bank (0.33 crore shares) and India’s largest private sector fertilizer producers - Chambal Fertilizers & Chemicals (0.33 crore shares).