Mkts trading sharply higher; bank, realty, CG stks surge

Benchmark indices are witnessing huge buying interest on the back of smart rally in realty, banking, capital goods, telecom, power, technology and oil stocks. Good recovery in European markets and strong uptrend in Dow futures are supporting our markets a bit.

Dow Jones Futures rose 211 points and Nasdaq Futures gained 38 points, as dealers expect the US will clear bail out package before weekend.

Domestic funds are largely buying defensive sector stocks. Recovery largely led by beaten down banks, real estate and technology stocks.

The Sensex rose 374 points to 12,969 and the Nifty jumped 109 points to 3,959, at 3:25 pm. BSE Midcap gained 1.7% and Small Cap Index rose 0.5%. Nifty Junior rose 3.5%.

Eoin Treacy, Global Strategist, Fullermoney.com sees some further upside in the markets. “The pressure that has been on stock markets globally will see some relief over the next week or so. Nifty is going to be rangebound with the upper side of the range being around the 4,500 level.”

Top gainers are ICICI Bank, HDFC, TCS and Unitech. However, losers are Tata Motors, Grasim, Tata Steel and ITC.

Market breadth is positive; about 680 shares have advanced while 571 shares have declined on the NSE.

BSE Bankex and Realty indices shot up 6% each. Capital Goods and TECK gained 3.5%. Power, IT and Oil & Gas rose over 2-2.5%. Auto rose 1.5%. However, FMCG tanked 1.8% and Metal fell 0.7%.

On the global front, European markets have recovered from day's low but are trading mixed. FTSE and CAC gained half a percent. DAX fell 0.5%.

Markets @ 1:45 pm : Mkts strong; TCS, Satyam, ICICI Bank top gainers

It is a sharp pull back rally for the markets in line with European markets. Finance Minister, P Chidambaram has reassured that Indian banking and financial system is well capitalised. Regulations are adequate and regulators are monitoring the situation. They will tweak regulations only if need arises.

He said that more FIIs will invest as India is attractive destination. Financial bailout in the US will help markets globally, FM said.

Buying is seen in most beaten down stocks like banking, technology, telecom, realty, capital goods, power and oil stocks. Midcap stocks are also on buyers' radar.

Top contributors to this bounce back are SBI, TCS, ICICI Bank, Bharti Airtel, Infosys, L&T, Reliance Inds, BHEL and HDFC.

The Sensex rose 320 points to 12,915 and the Nifty gained 82 points at 3,932, at 1:45 pm. BSE Midcap rose 0.5% while Small Cap fell 0.5%.

Market breadth also improved; about 1150 shares have advanced while 1809 shares have declined. Nearly 220 shares are unchanged.

Satyam, ICICI Bank and TCS are top gainers while losers are Tata Steel, Tata Motors, HUL, SAIL and Siemens.

BSE Bankex surged over 4% as ICICI Bank, IDBI Bank, IndusInd Bank, SBI and Union Bank rose 5-7%.

Technology stocks like TCS and Satyam gained 7.5%. Infosys, Mphasis, HCL Tech and Wipro rose 2-3%. IT Index went up 3.6%.

Realty Index jumped over 3%. Ansal Properties and Akruti City went up 10%. Unitech, HDIL, Puravankara Projects, Omaxe and DLF gained 3-6%.

Capital Goods Index rose 2%. BHEL, Punj Lloyd, Praj Industries and L&T shot up 3-5%.

Telecom stocks like Reliance Communication gained 4.24%, Bharti Airtel 3.92%, MTNL 1.31% and Idea Cellular 0.78%.

European markets were down over 2% in opening trade following bad cues from US markets but have managed to recovered. FTSE rose 22 points while CAC fell just 13 points and DAX lost 61 points.

Dow Jones and Nasdaq Futures gained over 2%.

Markets @ 1:06 pm : Nifty back above 3900; Bank, realty, CG, IT stks surge

The Nifty clawed back above 3900 and has recovered almost 200 points from day's low. Bank, realty, IT, capital goods and oil & gas stocks are witnessing good buying interest. However, metal and FMCG stocks are still witnessing selling pressure.

At 1.06 pm, the Sensex rose 200.66 points or 1.59% at 12796.41, and the Nifty up 51.40 points or 1.34% at 3901.45.

About 955 shares have advanced, 2006 shares declined, and 218 shares are unchanged.

Top gainers on the Sensex are Jaiprakash Asso at Rs 112.90 up 5.81%, ICICI Bank at Rs 519.95 up 5.40% and SBI at Rs 1,465.15 up 4.28%.

However, top losers on the Sensex are Tata Steel at Rs 430 down 3.45%, Tata Motors at Rs 345 down 3.05% and Grasim at Rs 1,692 down 2.33%.

Markets @ 12:38 am : Mkts recovery smartly; JP Associates, HDFC, BHEL top gainers

Markets have shown smart recovery and have re-opened with small bounce back after sun-outage. They are trading higher with some choppiness, which shows that benchmark indices have already factored in bad global cues. Buying is seen in banking, realty, technology, capital goods, power and PSU oil companies' stocks. However, selling continues in metal and FMCG.

The Sensex gained 99 points at 12,695 and the Nifty rose 24 points to 3,873, at 12:38 pm. However, BSE Midcap fell 0.8% and Small Cap Index lost 2%.

Top gainers are Jaiprakash Associates, HDFC, BHEL, BPCL, Satyam, Unitech and ICICI Bank. However, top losers are Tata Steel, Sterlite Industries, Tata Motors and SAIL.

BSE Bankex and Realty rose over 2%. IT and Capital Goods indices gained 1-1.5%. Oil & Gas and Power rose half a percent.

Market breadth is in favour of declines; about 775 shares have advanced while 2181 shares have declined. Nearly 223 shares are unchanged.

BSE Metal tumbled nearly 4% as steel companies may cut flat product prices by upto Rs 4,000 per tonne in October.

RBI said that ICICI Bank has sufficient liquidity to meet depositors' need. They have arranged to give enough cash to the bank to meet ATM withdrawal. The bank and its foreign arms are well capitalised. RBI is monitoring developments in ICICI Bank. The stocks rose nearly 5%.

Markets @ 11:04 am : Sensex struggles @ 12500; Tata Steel, Sterlite top losers

Markets are trading off days low as selling continues in metal, realty, capital goods, power and telecom stocks. Benchmark indices have shown smart recovery after huge sell off in opening trade. However, midcap and small cap stocks are extremely under pressure.

The Sensex fell 88 points to 12,507 and the Nifty lost 32 points to 3,818, at 11:04 am. Respective indices recovered nearly 350 points and 100 points from days low. BSE Midcap Index tumbled 2.75% and Small Cap fell 3.7%.

Portfolio Manager, PN Vijay feels the Senate and the Congress will regroup and modify the package and that would be passed by the House. He feels the markets will recover quickly from this turmoil. He is confident that the core economy of the world is good as the economic downturn is not as bad in manufacturing and services as it is in the investment banking.

Market breadth is very weak due to broader indices; about 539 shares have advanced while 2429 shares have declined. Nearly 211 shares are unchanged.

Top losers are Tata Steel, Sterlite Industries, DLF, SAIL and Suzlon Energy. However, gainers are ONGC, M&M, HDFC and BPCL.

BSE Metal Index fell 4.6%. Realty and Capital Goods indices lost around 3%. Power and Healthcare fell 1-1.9%.

However, oil marketing companies like BPCL and HPCL are up over 4%. IOC gained 2.6%. Crude is trading around USD 96 to a barrel on the NYMEX.

Markets @ 9:56 am : Mkts off day's low; midcap, small cap stocks crash

Markets got crushed in early trade in line with global markets as US house has rejected bailout plan in a 205-228 vote. However they have managed to show some recovery. Midcap and small cap stocks have been crunched further after heavy sell off in yesterday's trade.

Huge selling pressure is seen in banking, realty, capital goods, power, telecom and technology stocks.

At 9:56 am, the Sensex fell 248 points to 12,347 and the Nifty lost 66 points to 3,783. CNX Midcap tumbled 2.25% to 4,710.

Grasim, Suzlon, Satyam, Reliance Communication, Tata Power, Wipro, HCL Tech, Tata Steel, Ranbaxy, Infosys, ICICI Bank, DLF and Unitech have lost ground.

Ramesh Damani, Member of BSE and NSE said that this is a rare moment and extraordinary time in the capital markets and added that this crisis is a once in 100-year event. He feels Indian markets have not yet seen bear market bottom as yet and sees the market ranging between12000 and 13000 levels. He expects a huge slowdown in growth and sees the Sensex slipping to 10500.

Vibhav Kapoor of IL&FS said there is a fear that hedge funds abroad and maybe some India dedicated hedge funds as well as emerging market hedge funds might face a lot of redemption pressures at the end of this quarter which is today. He said, "If there is a real break below 3,800, not only is the range going to shift downwards but the duration of this bear market could then become much longer."

Asian markets have recovered from their days low. Hang Seng fell 1.6%, Nikkei -3.11%, Straits Times -2.08%, Kospi -1.45%, Taiwan Weighted -4.06% and Jakarta -0.74%.

Arnab Das, Head of Emerging Markets Research and Strategy, DKW, expects the financial woes to continue for some time. "It is going to create a bear market of some duration in most major markets including India."

Crude tanked and was trading below $ 96/bbl while gold prices zoomed.

US markets plunged as the House of Representatives rejected the $ 700 billion bailout plan to rescue the financial system. The S&P 500 index tumbled the most since the 1987 crash, the Dow saw it's biggest single day point fall in history and was down nearly 800 point.

The Dow plunged 777.68 points, or 6.98% percent, to 10,365.45. The S&P 500 index fell 106.62 points, or nearly 9 percent, to 1,106.39. The Nasdaq slipped 199.61 points, more than 9 percent, to 1,983.73.

Market cues:

US house defeats $700 bn bailout package, Wall Street crashes

Dow crashes nearly 800 pts in its biggest ever single-day absolute fall

FIIs net sell USD 149.8 million in equity on Sep 26

MFs net sell Rs 66.7 crore in equity on Sep 26

NSE F&O Open Interest up by Rs 1,814 crore at Rs 58,900 crore

F&O cues:

Futures Open Int down by Rs 593 crore, Options Open Int up by Rs 2407 crore

Nifty futures add 19 lakh shares in Open Int, at 9-point premium

Nifty Open Int Put-Call Ratio (PCR) at 0.90 vs 1.01

Nifty Puts add 7.2 lakh, Calls add 42.8 lakh shares in Open Int

Nifty 3800 Put adds 7.5 lakh shares in Open Int

Nifty 3750 Put adds 4.2 lakh shares in Open Int

Nifty 4000 Put sheds 5 lakh shares in Open Int

Nifty 4300 Call adds 9.2 lakh shares in Open Int

Nifty 4100 Call adds 6 lakh shares in Open Int

Nifty 4000 Call adds 6 lakh shares in Open Int

Stock futures shed 30 lakh shares in Open Int