Volatile session ends flat; Sensex regains 16K

The Indian markets closed a volatile session on a flat note. Sensex ended up by 32 points while the Nifty rose 15 points. Major Headlines: SBI up on signing pact with Brokerage firm Geojit Bank shares rise on hopes of rate cut CCI orders on tyre, cement cartels in final stage India HSBC May services PMI jumps to 3-month high Indian Indices The Indian equities extended previous session gains on the back of positive Asian cues and recovery in rupee at the opening bell. Markets also got support from capital goods, banking, power, oil & gas, pharma, IT and PSU stocks, which helped markets to maintain the upward trend. Index Heavyweights like L&T, RIL, HDFC Bank, SBI, TCS, HDFC and NTPC were also the major contributors. Positive European cues further helped markets to gain momentum. Later in the mid- afternoon session there was a sudden fall witnessed and markets failed to hold on to the intraday gains as profit booking emerged near resistance levels following weakness in the rupee. Overall, it was a volatile session. The Sensex closed at 16020, up by 32 points and the Nifty rose by 15 points to close at 4863. Tracking today's stock specific action, Jaiprakash Associates gained over 3% as Yamuna expressway is close to be operationalised. UP government is expected to finalise toll rates soon. At the end of the day the stock closed 1.47% lower. Hero Motocorp rose by 2% as company said it would invest Rs2,575 cr in its two new plants. It will also set up new plant in Neemrana in Rajasthan with initial capacity of 750,000 units. The stock closed 1.23% higher in trade today. Other major stocks in action were Infrastructure stocks, which gained ahead of Finance Minister's meeting to discuss issues about the sector on Wednesday (June 06, 2012). After this news, stocks like Reliance Infrastructure gained 2.43%, BHEL was up by 1.47%, Larsen & Toubro rose 3.08% while Jaypee Infratech surged 7.88% at the end of the market hours. On the other hand, news of final orders on tyre and cement cartels to be out in 2-3 weeks as announced by the CCI Chairman brought some action in the cement sector too. ACC rose by 0.48% while Ambuja Cements dropped 2.63% at closing. Further looking at the market scenario, India's services sector growth numbers, grew at its fastest pace in 3 months during May, to 54.7 in May 2012 as compared to 52.8 in the previous month and the firms were more optimistic for the year ahead, as the survey showed. Coming to currency, Indian rupee fell more than 20 paise to 55.85 a dollar after rising over 30 paise in early trade, but it turned flat again at the time of closing of Indian equities. Market sentiment: The market breadth stood in favor of advances. Of the 2828 stocks traded on the BSE, 1406 (49.72%) rose, 1291 (45.65%) fell and 131 (4.63%) stocks remained unchanged. Sectoral & stock screening: Among the 13 sectoral indices, seven sectors closed in red zone, while remaining six closed in green zone. Top Gainers: BSE CG (up by 2.00%), BSE Bankex (rose by 0.82%), BSE Power (surged by 0.80%). Top Losers: BSE Realty (down by 1.37%), BSE FMCG (fell by 1.09%) and BSE CD (slipped by 0.67%). Among 'A' group stocks, top three gainers were- JP Infratech (rose by 7.88%), Wockhardt (up by 5.61%) and Exide Indus (surged by 5.21%). Top three losers were- Mphasis (down by 5.39%), Apollo Tyres (declined by 4.05%), and Gujarat State Pet (fell by 3.25%). Global Signals The Asian markets ended in green today (June 05, 2012) as the investors awaited for a decisive action from the wider G7 to address the worsening euro zone crisis. European equity markets edged lower in a volatile session on Tuesday, as investors balanced the uncertain prospects of concerns about the euro zone crisis and a darkening technical picture. The US Stock index futures pointed to a slightly higher opening at the Wall Street on Tuesday, with futures for the S&P 500, the Dow Jones and the Nasdaq 100 up in the range of 0.1-0.3%. Market Outlook: Data to be released in the US on Tuesday is ISM Non-Manufacturing Index.