Nifty above 6300 in choppy trade

The Nifty shuts the choppy session in green and settles above 6300 mark as strong European indices lifted the sentiments along with buying in FMCG, IT and realty stocks

Major headlines

State Bank of India declines on disappointing Q2 results; the stock closes 4.40% lower

Thermax buys European boiler maker; the stock ends 1.70% down

Ramco Systems wins order from Gulf Petroleum; the stock closes 4.98% higher



Indian indices

It was a choppy session, with the domestic markets posting significant gains as the firm European indices lifted the sentiments. Buying in fast moving consumer goods (FMCG), realty, information technology (IT), financials and metal stocks also led the markets to post gains. The Small-cap outperformed the Mid-cap and the Sensex in today’s session.

Infosys Technologies, ICICI Bank, Tata Consultancy Services and HDFC Bank were positive contributors to the bourses. In the Midcap space, Himadri Chemicals, Sun Pharma Advance, Jet Airways, TVS Motor and United Breweries were up in the range of 9-17%. On the losing side, Shree Cement, Patni Computer Systems, Manappuram General Finance & Leasing and Vardhman Textiles were down in the range of 2.5-3.5%. Top loser on the Sensex and the Nifty was State Bank of India, down by 4.40% after posting lower-than-expected Q2 numbers.

The Sensex began the session on a flat note at 20,852. The Sensex moved higher, hitting the day’s high of 20984 in initial trades. The index started to trim gains as the session progressed. The Sensex erased all its gains in the afternoon trades and hit the day’s low of 20763. In late trades, the Sensex wiped out all its losses and turned positive as European stocks traded strong along with buying in fast moving consumer goods, realty and IT stocks.

At closing line, the Sensex closed at 20932, higher by 80 points. The Nifty shut at 6302, up by 28 points.

Bonds and Rupee update: The Indian rupee opened at Rs44.33 per dollar versus Rs44.37 per dollar. Ten-year yield is expected between 8-8.05%.

Market sentiment

The market breadth was strong as gaining stocks outnumbered the losing ones. Out of the 3,086 stocks on the BSE, 1,707 advanced while 1,222 declined. Hundred and fifty-seven stocks remained unchanged.

Sectoral and stock screening

Of the 13 sectoral indices only two fell i.e BSE Oil & Gas and BSE PSU down by 0.31% and 0.23% respectively. The major gainer was BSE FMCG that rose by 2.52%, followed by BSE Realty that surged by 1.48%, BSE TECk advanced by 1.11% and BSE IT gained by 1.08%. Rest of the gaining sectors were up in the range of 0.05-0.79%.

Looking into 'A' group stocks, Jet Airways was the top performer, up by 11%, followed by TVS Motor that surged by 9.35% and Nestle India rose by 8.40%. Among laggards, State Bank of India slid the most by 4.40%, followed by Infrastructure Development Finance Corporation that fell by 3.47% post Q2 results announcement and Patni Computer Systems declined by 3.10%.

Viewing volumes

Finance institution - IFCI saw highest trading, with over 0.92 crore shares changing hands on the BSE, followed by leading two-wheeler producer - TVS Motors (0.62 crore shares), public sector power utility- Power Grid Corporation of India (0.46 crore shares), Indian shipbuilder - Pipavav Shipyard (0.36 crore shares) and PSU firm - Rashtriya Chemicals & Fertilizers (0.29 crore shares).

Global signals

European shares hit a two-year high, with several companies including Vodafone and Barclays gaining after upbeat profit statements, and with the macroeconomic backdrop boosting sentiment.

The major Asian indices closed mixed. Indices like Nikkei, Hang Seng and Shanghai Composite ended lower, while Jakarta Composite, Straits Times and Kospi indices shut higher.

The US stock index futures point to a lower opening on the Wall Street. Earnings of companies like Dean Foods, Marsh & McLennan and Rockwell Automation are scheduled to be out today. Also, wholesale trade data for September will be declared.

Market Outlook: There are no major economic data in the US tonight.