Nifty regains 6,000 mark

Trading for the week began on an upbeat note, with share prices bouncing back from two-month lows tracking firm global stocks. The strong buying momentum helped the 50-unit S&P CNX Nifty regain the psychological 6,000 mark. All the sectoral indices on the BSE were in positive zone. Banking, consumer durables and IT stocks led the rally. Capital goods and healthcare stocks lagged the rally. The BSE 30-share Sensex jumped 372.15 points or 1.9%, up 316 points from the day's low and off 31 points from the day's high.



The market opened on a firm note as most Asian stocks rose after Ireland on Sunday, 21 November 2010, formally applied for aid from the European Union and the International Monetary fund. A bout of volatility was witnessed as the key benchmark indices later pared gains. The market surged in mid-morning trade. Firmness prevailed in early afternoon trade. The market struck a fresh intraday high in afternoon trade. Buying intensified in the mid-afternoon trade.

In the near-term, year-end profit taking may cap the upside on the domestic bourses. A number of stocks have clocked decent to strong gains this year. Funds based in US and Europe follow calendar year as their accounting year. The market had lost ground soon after hitting a record closing high early this month. The Sensex and the Nifty had settled at two-month closing lows on Friday, 19 November 2010.

European shares rose on Monday after Ireland agreed to a rescue package from European partners and the International Monetary Fund. The key benchmark indices in UK, France and Germany were up by 0.29% to 0.52%. Ireland's request, which eased concerns over regional and global economies prompted risk-sensitive stock investors to increase their share holdings.

The bailout deal between debt-burdened Dublin and the European Union took shape on Sunday, 21 November 2010, as EU finance ministers backed Ireland's filing for three-year loans totaling roughly EUR80 billion.

Details of the size and conditions of any bailout package remained unclear. The program will address the fiscal challenges of the Irish economy and also include a fund for potential future capital needs of the banking sector, euro-zone finance ministers said in a statement.

Asian stocks rose on Monday, 22 November 2010, on news over the weekend that Ireland has formally applied for aid from the European Union and the International Monetary fund. The key benchmark indices in Japan, South Korea, Indonesia and Taiwan were up by between 0.17% to 0.93%. Hong Kong stocks fell, with real-estate stocks down sharply in the wake of measures Friday, 19 November 2010, to cool prices in the sector. The Hang Seng index was down 0.35%. Singapore's Straits Times fell 0.20%.

In China, the Shanghai Composite index was down 0.15%. China on Friday, 19 November 2010, lifted its reserve requirement ratio for banks by 0.5%, aimed at reining in credit growth and rising inflation. However, the central bank's latest move lowers the chance of an interest rate hike this month.

Flows into equity and bond funds "hit a wall in mid-November 2010," said fund-tracker EPFR on Friday, 19 November 2010, weighed by investor worries about indebtedness in the euro zone and weaker demand from China amid rising inflation. EPFR said globally tracked equity funds were hit with redemptions totaling $5.6 billion just a week after collectively posting their biggest inflow in more than 22 months. Only three major equity fund groups - Asia ex-Japan, Global and EMEA Equity Funds - posted inflows during the week ending 17 November 2010. But all emerging market equity funds combined posted inflows for the week, and extended year-to-date flows to $81.9 billion, "within a whisker of last year's $83.3 billion inflow record," wrote EPFR.

Trading in US index futures indicated that the Dow could rise 33 points at the opening bell on Monday, 22 November 2010.

While global liquidity remains ample, a section of the market is worried that a strong equity issuance pipeline over the next six months will soak liquidity from the secondary equity market. Indian companies are estimated to raise about Rs 80000 crore from equity and debt issue over the next three to six months. Steel Authority of India and Indian Oil Corporation (IOC) are some of the state-run firms that are planning large share sales in coming months. The Indian Government is selling 10% of its 78.92% stake in IOC, while the company will issue new equity of 10% of existing paid up capital. The size of the follow-on public offer of IOC is pegged at a massive about Rs 19000 crore.

Other upcoming state offers include Manganese Ore India's IPO to raise up to $270 million, Hindustan Copper's $1.6 billion share sale, and Shipping Corp of India's $320 milion share sale.

According to one report, fund raising by way of initial public offerings (IPOs), follow-on public offerings (FPOs) and qualified institutional placements (QIPs) have totalled a record Rs 87733 crore in the year till date, beating the previous high of Rs 65344 crore in calendar year 2007.

Meanwhile, the Supreme Court on Monday, 22 November 2010, will hear petition filed by Centre for Public Interest Litigation, asking the top court to monitor 2G probe. Supreme Court will hear Prime Minister Manmohan Singh's affidavit on 2G tomorrow, 23 November 2010. The PM told the Supreme Court on Saturday, 20 November 2010, he had done nothing wrong and had followed correct procedures. In a rare move, the Supreme Court last week reprimanded Singh for failing to probe ex-telecoms minister Andimuthu Raja over allegations he had sold licences too cheaply. The court demanded Singh himself explain what had happened, tarnishing his squeaky-clean image.

Speaking at the HT Leadership Summit in New Delhi on Saturday, 20 November 2010, Singh said, "There should be no doubt in anybody's mind that if any wrong thing has been done by anybody, he or she will be brought to book. But for all these to happen, in a democracy we have to allow Parliament to function... We are ready to discuss all issues. We are not afraid of discussions," he said on the stalemate over the spectrum issue.

The BSE 30-share Sensex surged 372.15 points or 1.9% to settle at 19,957.59. The Sensex jumped 403.58 points at the day's high of 19,989.02 in mid-afternoon trade. The index rose 55.98 points at the day's low of 19,641.42 in morning trade.

The 50-unit S&P CNX Nifty rose 119.70 points or 2.03% at 6,010. The Nifty hit a high of 6,020.25 in mid-afternoon trade.

The BSE Mid-Cap index was up 1.28%. The BSE Small-Cap index rose 1.46%. Both these indices underperformed the Sensex.

The market breadth, indicating the health of the market, was strong. On BSE, 1908 shares rose while 1067 shares fell. A total of 110 shares remained unchanged.

BSE clocked a turnover Rs 3819 crore, lower than Rs 4701.05 crore on Friday, 19 November 2010.

All the sectoral indices on BSE were in positive zone. The banking sector index Bankex (up 2.64%), Consumer Durables index (up 2.59%), IT index (up 2.50%), Realty index (up 2.01%), outperformed the Sensex.

Auto index (up 1.77%), FMCG index (up 1.76%), Oil & Gas index (up 1.52%), Metal index (up 1.24%), PSU index (up 1.17%), Power index (up 0.93%), Healthcare index (up 0.55%) and Capital Goods index (up 0.30%), underperformed the Sensex.

From 30-share Sensex pack, 27 gained while rest of them declined.

Wipro (up 4.16%), Jaiprakash Associates (up 4.02%), DLF (up 3.43%) and Tata Motors (up 3.18%) were the leading Sensex gainers.

Index heavyweight Reliance Industries (RIL) rose 1.53% to Rs 1012.10. RIL after market hours on 19 November 2010 said its crude distillation unit number 1 and coker unit at the Jamnagar Refinery complex, which were under planned shutdown for carrying out maintenance activities from last week of October, 2010, have safely restarted on 17 November 2010 and are operating satisfactorily.

NTPC (down 0.62%), Larsen & Toubro (down 0.22%) and Sterlite Industries (down 0.11%), were the leading Sensex losers.

Investors also took fresh positions in banking shares after recent declines. IndusInd Bank, Kotak Mahindra Bank, Bank of India, Axis Bank, Oriental Bank of Commerce, Federal Bank, HDFC Bank, Bank of Baroda, Canara Bank, Indian Overseas, Punjab National Bank, Yes Bank, Union Bank of India and IDBI Bank rose by 0.64% to 5.40%.

India's largest private sector bank by market capitalisation ICICI Bank rose 2.69%. India's largest commercial bank by branch network State Bank of India rose 1.56%.

The BSE banking sector index -- the Bankex had declined 5.54% in three consecutive sessions to settle at 13,705.09 on Friday, 19 November 2010 from a recent high of 14,509.60 on 15 November 2010.

Consumer durables stocks rose. Rajesh Exports, Titan Industries, VIP Industries, Gitanjali Gems, Whirlpool of India, Blue Star, Videocon Industries and Bajaj Electricals rose by 0.31% to 4.20%.

IT stocks, too, edged higher. Wipro, HCL Technologies, Infosys, TCS, Rolta India, Mphasis, Oracle Financial Services Software and Tech Mahindra rose by 0.01% to 4.16%.

India's largest truck maker by sales Tata Motors rose 3.18% on reports the company will start selling its small car Nano in six more states across the country from 22 November 2010. Among other auto shares, Bajaj Auto, Mahindra & Mahindra, Maruti Suzuki India, Ashok Leyland and Hero Honda Motors rose by 0.42% to 2.07%.

Realty shares bounced back after recent sell-off. Indiabulls Real Estate, DLF, Sobha Developers, Unitech, Ackruti City, Anant Raj Industries, Orbit Corporation, Peninsula Land, and Sunteck Realty rose by 0.18% to 3.46%.

The BSE Realty index had declined 16.75% in seven sessions to 3173.57 on Friday, 19 November 2010, from a recent high of 3812.36 on 9 November 2010.

Among FMCG sector gainers, Ruchi Soya Industries, ITC, Mcleod Russel (India), Nestle India, Tata Global Beverages, United Spirits and Hindustan Unilever rose by 0.08% to 6.03%.

Among Oil & Gas stocks, Aban Offshore, Cairn India, ONGC, Essar Oil, BPCL, HPCL and Gail India rose by 0.42% to 2.67%.

Metal shares also rose. Tata Steel, Jindal Steel & Power, JSW Steel, Welspun Corp, Hindalco Industries, Steel Authority of India, NMDC, Sesa Goa, National Aluminium Company, Hindustan Zinc and Jindal Saw rose by 0.18% to 2.95%.

From the power sector, GVK Power & Infrastructure, Adani Power, Tata Power, GMR Infrastructure, Reliance Power, Lanco Infratech, ABB, JSW Energy, Neyveli Lignite Corporation, Suzlon Energy, Siemens, Crompton Greaves, Bharat Heavy Electricals, NHPC, Torrent Power, Power Grid Corporation of India and Reliance Infrastructure rose by 0.19% to 3%.

Pharma stocks rose. Orchid Chemicals, Ranbaxy Laboratories, Piramal Healthcare, Biocon, Cipla, Glaxosmithkl Pharmaceuticals, Sun Pharmaceuticals Industries, Dr Reddy's Laboratories, Glenmark Pharmaceuticals, and Jubilant Organosys rose by 0.18% to 3.53%.

From the capital goods pack, Reliance Industrial Infrastructure, Havells India, AIA Engineering, Areva T&D, ABB, Lakshmi Machine Works, Praj Industries, Thermax, Suzlon Energy, Siemens, Crompton Greaves, Bharat Electricals, Jyoti Structures, BHEL and Gammon India rose by 0.11% to 7.41%.

State Bank of India clocked a highest turnover of Rs 177.28 crore on BSE. Gravita India (Rs 164.42 crore), Coal India (Rs 109.09 crore), Tata Steel (Rs 71.42 crore) and Educomp Solutions (Rs 66.18 crore), were other turnover toppers in that order.

Resurgere Mines & Minerals India reported a highest volume of 1.73 crore shares on BSE. Cals Refineries (1.24 crore shares), SEL Manufacturing Company (82.76 lakh shares), Shree Ashtavinayak Cine Vision (82.14 lakhs shares) and Alok Industries (69.10 lakh shares), were other volume toppers in that order.