Nifty attains at 3-month closing high

Bargain hunting after a four-day decline helped Indian stocks log smart gains in what was a global rally. A slide in crude oil prices from 2-1/2-year peak helped ease macroeconomic worries, aiding strong gains in Indian shares. The Sensex was up 434.32 points or 2.25% to 19,696.86, up 595.23 points from the day's low and off 34.51 points from the day's high. The barometer index BSE Sensex settled at one-week high while the 50-unit S&P CNX Nifty settled at 3-month high. The market breadth, indicating the overall health of the market, was strong.



Bank shares rose across the board on expectation of good Q4 results. Capital goods and auto stocks rose on renewed buying. IT stocks rose ahead of IT bellwether Infosys' Q4 result on Friday, 15 April 2011. Cigarette maker ITC scaled a record high on expectations of good Q4 results.

The market recovered after hitting 2-week low at the onset of the trading session, tracking recovery in Asian stocks. The market moved into the positive zone to hit fresh intraday high in morning trade. The market extended initial gains to hit fresh intraday high in mid-morning trade. The market trimmed gains in early afternoon trade. The market struck a fresh intraday high in afternoon trade. The Sensex extended gains in mid-afternoon trade. The barometer index surged to hit one-week high in late trade.

The BSE 30-share Sensex was up 434.32 points or 2.25% to 19,696.86, its highest closing level since 4 April 2011. The Sensex rose 468.83 points at the day's high of 19,731.37 in late trade. The Sensex shed 168.91 points at the day's low of 19,101.63 in early trade, its lowest level since 29 March 2011.

The S&P CNX Nifty was up 125.80 points or 2.17% to 5,911.15, its highest closing since 6 January 2011. The Nifty hit high of 5,923.60 in late trade. The Nifty hit low of 5,735.55 in early trade, its lowest level since 29 March 2011.

The market breadth, indicating the health of the market, was strong. On BSE, 1,941 shares advanced while 977 shares declined. A total of 93 shares remained unchanged. The breadth was negative at the onset of the trading session.

The BSE Mid-Cap index rose 1.40% and the BSE Small-Cap index advanced 1.30%. Both these indices underperformed the Sensex.

All the 13-sectoral indices on the BSE logged gains. The BSE Capital Goods (up 2.73%), the BSE Auto (up 2.54%), and the Bankex (up 2.32%), outperformed the Sensex. The BSE Healthcare (up 0.76%), the BSE Metal (up 0.80%), and the BSE Consumer Durables (up 1.11%), underperformed the Sensex.

Among the 30-member Sensex pack, 28 advanced while only two of them declined.

BSE clocked turnover of Rs 3373 crore, higher than Rs 2588.21 crore on Monday, 11 April 2011.

Index heavyweight Reliance Industries (RIL) rose 1.36% to Rs 1020.80, off the day's low of Rs 998 as refining margins are seen rising on the back of high crude oil prices. After market hours today, RIL said it has started work on large polyester projects in India to consolidate its position as the world's largest integrated polyester producer.

RIL said it has planned its capacity expansion in phases over the next few years including a 2.30 million metric tonne at Dahej, Gujarat, with an ability to increase the capacity by another 1.15 million tonne at a later stage. The expansion also includes a 3.95 lakh tonne of polyester filament yarn and 1.4 lakh tonne polyester texturized yarn at Silvassa.

ONGC gained 1.78% after chairman A. K. Hazarika was quoted by the media as saying that the company will sign an agreement during the week-end to purchase a 25% stake in the Satpayev exploration block in Kazakhstan. The government has approved a total investment plan of $400 million. This includes a signature bonus of $13 million and $80 million as a fee for taking the stake in the block. The rest will be spent on exploration activities.

IT stocks rose ahead of IT bellwether Infosys' Q4 result on Friday, 15 April 2011. India's second largest software services exporter Infosys Technologies rose 2.29%, with the stock gaining for the second straight day. The market has been abuzz with talks Infosys will give encouraging guidance for the year ending March 2012 (FY 2012) given underlying strong demand for offshore outsourcing. Infosys will give annual guidance for FY 2012 at the time of announcing Q4 March 2011 results on Friday.

A total of 6 brokerages expects a between 3.3% to 6.7% growth in Infosys' consolidated net profit as per International Financial Reporting Standards at between Rs 1839.40 crore to Rs 1899.20 crore in Q4 March 2011 over Q3 December 2010. The revenue is seen rising 4.2% to 6% at between Rs 7407.80 crore to Rs 7531 crore in Q4 March 2011 over Q3 December 2010.

India's largest software services exporter TCS advanced 2.23%. The company will announce Q4 result on 21 April 2011. India's third largest software services exporter Wipro gained 3.19%. The company will announce Q4 result on 27 April 2011.

Mahindra Satyam was down 0.91%. After market hours today the company said it won a large enterprise resource planning contract from Qatar University. As per the order, Mahindra Satyam will implement its strategic business solutions for Qatar's premier academic institution.

Cigarette maker ITC rose 2.81% to Rs 190.15 on expectations of good Q4 results. The stock hit record high of Rs 190.50 today.

India's largest dam builder by sales Jaiprakash Associates surged 7.58% after executive chairman Manoj Gaur was quoted as saying the company aims to maintain a growth rate of 40% and aims to scale down debt significantly in the year ending March 2012 (FY 2012). It was the top gainer from the Sensex pack.

Bank shares rose across the board on expectation of good Q4 results. India's second largest private sector bank by net profit HDFC Bank rose 3.65%. The bank will announce Q4 result on 18 April 2011. India's largest private sector bank by net profit ICICI Bank gained 2.68%. The bank will announce Q4 result on 28 April 2011.

India's largest state run bank by net profit and branch network State Bank of India (SBI) edged up 1.46%. Pratip Chaudhuri has taken over as the new chairman of State Bank of India the state-run bank said on 7 April 2011. Chaudhuri, 57, has been working with State Bank for 37 years and takes over from O.P. Bhatt. Before taking up the top role, Chaudhuri was deputy managing director in the international banking division of thebank.

Development Credit Bank jumped 15.40% after the bank reported a net profit of Rs 11.34 crore in Q4 March 2011 compared with a net loss of Rs 8.15 crore in Q4 March 2010. The private sector bank announced the results during trading hours today, 13 April 2011.

Capital goods stocks rose on renewed buying. Punj Lloyd, ABB, Larsen & Toubro, BEML and Bhel rose by between 0.85% to 5.38%.

Power utility major Reliance Infrastructure rose 1.98%. After market hours today, the company said it today bought-back 1 lakh equity shares under its buyback scheme.

Container Corporation of India flared up 7.05%. The company announces Q4 March 2011 results on 19 April 2011.

Auto stocks rose on strong domestic demand. India's top small car maker by sales Maruti Suzuki rose 3.41%, with the stock snapping last four days' losses. The company announced last week that it would recall 13,157 diesel engine cars. The company said it would inspect the 'connecting rod bolt' for units of its Swift and Ritz model diesel cars with engines manufactured between 13 November 2010 and 4 December 2010.

Maruti Suzuki increased the prices of its products by 0.2% to 2.4% from 4 April 2011, depending on the models to offset rising costs of key inputs viz. steel, aluminum, copper and natural rubber.

India's largest truck maker by sales Tata Motors gained 2.61%, with the stock snapping last three days' slide. The company had hiked prices of some car models by Rs 7,000 to Rs 36,000 from 1 April 2011.

India's top tractor and utility vehicles maker by sales Mahindra & Mahindra rose 2.73% with the stock snapping last two days' fall. The company has reportedly raised prices on most of its models by 1.5% to 2% recently to offset higher commodity prices.

India's largest bike maker by sales Hero Honda Motors gained 6.34% with the stock snapping last two days' losses after company today declared an interim dividend of Rs 70 per equity share for the year ended March 2011. Hero Honda's total sales rose 24.4% to 5.15 lakh units in March 2011 over March 2010. The monthly sales in March 2011 were record monthly sales.

India's second largest bike maker by sales Bajaj Auto rose 1.6% with the stock snapping last three days' losses. The company's total vehicle sales increased 12% to 3.07 lakh units in March 2011 over March 2010. The company announced its March 2011 sales figures on 4 April 2011.

Cals Refineries clocked highest volume of 6.92 crore shares on BSE. Bampsl Securities (1.54 crore shares), Development Credit Bank (1.05 crore shares), Resurgere Mines (72.19 lakh shares) and Teledata Technology Solutions (67.98 lakh shares) were the other volume toppers in that order.

Gruh Finance clocked highest turnover of Rs 178.20 crore on BSE. Mahindra & Mahindra Financial Services (Rs 134.26 crore), DLF (Rs 92.51 crore), State Bank of India (Rs 92.37 crore) and LIC Housing Finance (Rs 78.06 crore) were the other turnover toppers in that order.

The stock market remains closed tomorrow, 14 April 2011, on account of Dr. Ambedkar Jayanti. The near term major trigger for the market is Q4 March 2011 results which will start trickling in starting this week when IT bellwether Infosys unveils earnings on Friday, 15 April 2011. Investors will scrutinize post-result management commentary to gauge outlook on earnings at a time when rising salaries, raw materials prices and interest rates are pressurizing profit margins of India Inc.

European stocks rose Wednesday, boosted by strength in the auto sector and tracking gains in Asia, as investors looked to the next round of US earnings reports. The key benchmark indices in UK, Germany and France were up by between 1.13% to 1.29%.

Japanese stocks led recovery in Asian markets on Wednesday on reports Japan's Renesas Electronics Corp. would restart a key factory that was hit by last month's quake in June 2011, a month earlier than expected. The key benchmark indices in Japan, China, South Korea, Indonesia, Singapore, Hong Kong and Indonesia rose by between 0.55% to 1.56%.

Meanwhile, Japan's government on Wednesday downgraded its assessment of the economy for the first time in six months, saying it is showing weakness after a devastating earthquake and tsunami last month battered the northeast coast.

US stocks dropped on Tuesday on worries falling oil prices could set off a reversal in the high-flying energy sector, while Alcoa's leaner-than-expected revenue disappointed. US trade deficit shrank in February as a slowdown in demand both at home and abroad hit imports and exports. The trade gap totaled $45.8 billion, down 2.6% from January despite another monthly rise in oil prices to their highest since October 2008, the Commerce Department said on Tuesday.

Trading in US index futures indicated that the Dow could gain 73 points at the opening bell on Wednesday, 13 April 2011.

Back home, high global commodity prices will add to pressure on profit margins of Indian firms caused by rising salaries and higher interest rates. Investors can take some solace in a recent slide in crude oil prices from 2-1-/2-year highs.

A surge in crude oil prices over the past few months has sparked inflation and interest rate worries. The Reserve Bank of India (RBI) is seen raising key short term policy rates by 25 basis points at its annual 2011-2012 monetary policy review on 3 May 2011.

India imports majority of its crude oil requirements and high oil prices have raised concerns about widening current account deficit. High oil prices have also raised concerns about higher oil subsidy bill for the government and its negative impact on the government's fiscal position. US crude futures were up 48 cents or 0.45% at 106.73 a barrel.

Industrial production rose 3.6% in February 2011, lower than market expectations of a 4.8% growth, data released by the government on Monday showed. Manufacturing output, which constitutes about 80% of the industrial production, rose an annual 3.5% in February 2011. January's industrial output annual growth rate was revised upwards to 3.9% from 3.7%.

The data of Wholesale Price Index for the month of March 2011 is due on Friday, 15 April 2011. A Capital Market poll pegs a median rate of rise in inflation at 8.3% in March 2011, same as the rate of rise in inflation in February 2011.

The International Monetary Fund has marginally cut its 2011 economic growth forecast for India to 8.2% from 8.4% as persistent inflation pressure forced aggressive monetary tightening.

Good monsoon this year could help ease food inflation and boost rural income. Recent reports indicate that India will receive good rains during the July-September monsoon season this year. The India Meteorological Department (IMD) will give its first official forecast for the June to September monsoon on 19 April 2011.