Mkts end with modest gains ahead of IIP nos

The Indian equities remained highly volatile throughout the day and closed today's trading session in the green zone despite losses all across the globe. The Sensex closed 86 points higher while the Nifty ended 27 points higher in trade today. Major Headlines of the Day: Oil marketing cos’ up over 2% on fuel price hike hopes Tata Motors hits monthly high on JP Morgan report Panacea Biotech locks upper circuit Hero MotoCorp drops on production cut woes Sesa Goa, Sterlite slips over 5% as Goa govt shuts mining activities Indian Indices: The Indian markets witnessed a dull trading today with no major action on the charts. The indices opened the session on a negative note tracking weak global cues. Equities traded lower throughout day. The Indian markets showed a reversal trend in the early afternoon trade, despite of poor opening of the European indices. The Sensex rose today for the fifth consecutive session on rising hopes for fiscal reforms after Oil Minister S. Jaipal Reddy said India would need to hike the price of heavily subsidised fuels such as diesel in the near term. The market recouped all its losses and rose 0.5%. The Sensex gained 86 points while Nifty rose 26 points. Movement of the Indian indices for the day: The Indian markets started today's trade on a negative zone for the second consecutive session due to lack of local and Asian cues. Black clouds were hovering on the Dalal Street for the first half of the day as the equities witnessed gloomy trading sessions. The key indices hit their intraday low levels at 17677.38 in the morning session and intraday high at 17867.85 in the afternoon session. Later the Indian markets showed a smart recovery in the afternoon trade as the BSE Sensex and Nifty recouped most of its losses led by strong buying in majority of the sectors except metal and auto. Major heavyweight supporters were - HDFC, ITC, ICICI Bank, TCS, Infosys, NTPC and HDFC Bank. The recovery in the Indian equities came despite of steep fall across the Asian markets and a weak opening in the European markets. The key benchmarks gained momentum in the later trade, especially on hopes of fuel price hike. Oil Minister Jaipal Reddy said the fuel price hike decision would be taken soon, after a meeting with Finance Minister Manmohan Singh over recoveries of oil marketing companies and various suggestions on fuel price hike. The gains in the markets was also led by financials on hopes that the expansion in July industrial output, data which will be released tomorrow (August 12, 2012), would help the central bank to ease the interest rates. Markets remained rangebound for major part of the trading session. At the closing bell, the BSE Midcap index rose by 0.27%, while the BSE Smallcap index was up by 0.58%. The Sensex closed at 17,852.95, up by 86.17 points and the Nifty gained by 26.55 points to close at 5,390. Following are the stocks/ sectors which were in news today: 1. Opto Circuits (India) gained today, after its subsidiary Opto Eurocor Healthcare launched its first Sirolimus Drug Eluting Stent (DES), E-MAGIC® Plus. The stock closed 7.75% higher in today’s trade. 2. Muthoot Finance rallied, on plans to raise funds up to Rs500 crore through secured non-convertible debentures (NCD). The stock closed 10.57% higher in today’s trade. 3. Hero MotoCorp slipped, on worries that the two-wheeler makers will have to cut production after posting a 11.9% fall in sales for the month of August. The stock closed 1% lower in today’s trade. 3. Tulip Telecom locked lower circuit of 5% at Rs77.25 for second day in a row on the BSE. The stock of telecom services provider is under pressure as the company is yet to tie-up funds for redemption of foreign currency convertible bonds (FCCBs). 4. Panacea Biotech locked the upper circuit of 20% at Rs108 after the company said that it has entered into strategic alliance with Osmotica Pharmaceutical for developing high barriers to enter generic and branded pharmaceuticals for US and key strategic markets. 5. Sesa Goa declined after the company stopped mining after an order coming from the Goa government. The Goa government has decided to stop mining in all 90 mines in Goa till review is done. The stock closed 5.81% lower in today’s trade. Market sentiment: The market breadth stood in favor of advances. Of the 2969 stocks traded on the BSE, 1574 (53.01%) rose, 1263 (42.54%) fell and 132 (4.45%) stocks remained unchanged. Sectoral & stock screening: Among the 13 sectoral indices, nine sectors closed in green zone while remaining two sectors closed in red zone. Top Gainers: BSE Realty rose by 0.94%, BSE IT surged by 0.88%, BSE Power gained 0.81%. Top Losers: BSE Metal down by 1.48%, BSE Auto down by 0.05%. Among 'A' group stocks, top three gainers were- Muthoot Finance rose by 10.57%, Opto Circuits up by 7.75% and Unitech surged by 6.99%. Top three losers were- Sesa Goa declined by 5.81%, United Breweries down by 4.77% and Sterlite Industries fell by 4.43%. Global signals: Asian stock markets declined on Tuesday as the investors opted for caution ahead of key events, including the German court ruling on ESM constitutionality and the U.S. Federal Reserve policy meeting later this week. European equities eased today, with investors taking profits after a rally of 13-month highs on concerns about the strings that Germany may attach to the euro zone bailout fund and the chance the U.S. may not deliver widely awaited stimulus. Also the German Constitutional Court will decide on Wednesday whether the country can legally participate in euro zone's permanent bailout fund known as the European Stability Mechanism, which gives loans to member states and may buy their bonds. US stock index futures pointed towards a slightly higher opening at the Wall Street on Tuesday. Market Outlook: Data to be released in the US on Tuesday is International trade.