Sensex extends 3-day rise, ends 172 points higher

PSU oil & gas stocks were the top stars for the day after rise in fuel prices, which led the Indian markets to close the session on an optimistic note

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Indian indices

The key benchmark indices continued their gaining trend for the third successive session supported mainly by oil & gas, PSU, capital goods and banking stocks. Sentiments turned positive after the Empowered Group of Ministers hiked fuel prices, pushing PSU oil companies higher. The decline in global crude oil prices also provided support. The Nifty closed above the 5500-mark for the first time in last nine days.

Market welcomed the hike in fuel prices, with investor sentiment upbeat leading to tremendous buying in index heavyweights and state-run oil companies’ shares.

Sensex movements: Tracking weak global cues, the Sensex opened the trade 108 points lower at 18133 (day’s low). However, the index managed to erase early losses on the back of buying in index heavyweights and oil & gas shares. In the afternoon session, the Sensex touched the day’s high 18494 on buying across board mainly in oil & gas, PSU and capital goods companies’ shares. The Sensex rose 172 points to close at 18412 and the Nifty settled at 5527, up by 55 points.

Bond update: India’s 10-year bonds fell on concern that inflation will accelerate after diesel prices were raised for the first time in a year.

Market sentiment

The market breadth stood strong with 1,636 shares rising, 1,193 shares declining and 116 stocks traded unchanged.

Viewing volumes

One of the fastest growing integrated infrastructure enterprises of India - Lanco Infratech was traded the most, with over 2.68 crore shares changing hands on the BSE. It was followed by a leading national oil company of India - ONGC (0.31 crore shares), India's second largest real estate developer - Unitech (0.23 crore shares), wind turbine major - Suzlon Energy (0.17 crore shares) and a Navratna state-owned company - Power Grid Corporation (0.17 crore shares).

Sectoral & stock screening

Ten sectors ended in the positive territory, while three closed down. BSE PSU was the major gainer, surging by 1.92%, than comes BSE Capital Goods (CG) up by 1.75% and BSE Bankex up by 1.61%. The three losers - BSE Realty down by 0.62%, BSE Fast Moving Consumer Goods (FMCG) slipped by 0.48% and BSE Consumer Durables (CD) declined by 0.43%.

Coming to 'A' group stocks, Videocon Industries was the star performer, surging by 6.62%, then comes HPCL up by 5.80% and Oil India jumped 5.64%. Among losers, Religare Enterprises fell the most by 3.96%, followed by Bhushan Steel down by 3.72% and Housing Development & Infrastructure Ltd (HDIL) lost by 3.57%.

Global signals

The European shares edged up on Monday, after falling for eight straight weeks, with beaten-down banks ticking up and some strategists saying the worst-case scenario for heavily-indebted Greece is already priced in.

All the Asian markets ended on a negative note on Monday as Greece worries spur bank jitters. However, Shanghai Composite was the only gainer, up by 0.44%.

Market Outlook: Personal Income data will be out in the US on Monday.