RTTNews - Tuesday, the benchmark for the Indian market, the Sensex ended modestly higher after bouncing back from the day's lows. Profit taking after a 4-day winning streak weighed on market movement. While the BSE Sensex closed at 14,875, up 34 points or 0.23% from its previous close, the S&P CNX Nifty slipped 5 points or 0.10% to 4,525. The Indian market has risen 84% since its March lows.
Elsewhere, the other Asian markets witnessed mixed trading, European stocks were modestly lower in their early dealing and the U.S. markets were poised for a mediocre open Tuesday morning in New York, as traders prepared to take profits after a stellar performances in the previous few sessions.
Back home, investors paid little attention to reassuring infrastructure report. Government data released on Tuesday showed that India's infrastructure sector output grew 4.3% in April compared to 2.3% in the same month last year and 2.7% for the fiscal year ended March 2009. The infrastructure sector accounts for 26.7% of India's industrial output.
Compared to large caps, second-line stocks closed on a better note. The mid-cap index on the BSE rose 0.82% and the small-cap index added 0.91%. The market breadth was fairly positive. Advancers outnumbered decliners by 1664 to 1130 and 56 stocks closed unchanged.
Sector-wise, while realty, power, public sector and banking stocks bore the brunt of the selling pressure, the consumer durable and metal indexes advanced around 2.5% each. Select capital goods and IT stocks also closed firm.
Tata Steel, HDFC, Sterlite, Tata Motors, Mahindra & Mahindra, State Bank of India and Grasim were the top gainers. On the other hand, ACC, Ranbaxy, Reliance Infrastructure, Tata Power, DLF, HDFC Bank, NTPC, Jaiprakash Associates and Wipro ended deep in the red.
Auto stocks were in the spotlight after most manufacturers reported encouraging sales figures for May due to better consumer sentiment and easy availability of finance. Among the top gainers in this space, Ashok Leyland jumped 7.82%, Tata Motors advanced 3.31%, Bajaj Auto rose 2.40%, Hero Honda Motors gained 2.24% and Mahindra & Mahindra added 2.10%. However, Maruti Suzuki ended down 0.81%.
Cement stocks ended mixed after companies such as Shree Cement, Ambuja Cements and the Aditya Birla group reported sharp growth in cement shipments in May. Grasim rose 1.57%, Madras Cement jumped 6.68%, Ambuja Cements gained 2.40% and Shree Cement added 1.52%, but UltraTech fell 2.02%, and ACC tumbled 5.83%. Binani Cement advanced 3.44% on reports about fund raising plans for its expansion into overseas markets.
Emami fell 3.48% amid reports that it was in talks with private equity players to raise funds for its expansion plans. Indage Vintners was locked at the 5% upper circuit limit on reports that it will spin off its wine business into a new company.
Axis Bank shed nearly 3% after the private sector lender announced plans to raise Rs.3, 000 crore through an issue of debt in the local and overseas markets to fund its organic growth.
Orbit Corp jumped 8.14% on reports it will raise up to Rs.250 crore through qualified institutional share placement and that it will launch 4 projects in Mumbai in FY10. DLF lost 2.43% on reports that it will have to return all the tax sops it had taken from the government before withdrawing from four of its IT, ITES Special Economic Zones.
NMDC slumped 5% after its shareholders and unsecured creditors approved the merger of Sponge Iron India with itself. KGN Industries rallied 5% after the company proposed to split its existing equity shares of the face value of Rs.10/- each into 10 equity shares of the face value of Rs.1/- each.
State-run oil firm ONGC ended down 0.79% and Indian Oil Corporation fell 3.12% after the oil secretary RS Pandey said the government has no plans to sell stakes in these companies. Essar Oil tumbled 4.02% after a total of 36.2 million shares changed hands in eight block deals on the BSE.
HPCL fell 3.12% and BPCL closed down 0.28%, while market heavyweight Reliance Industries closed almost unchanged. However, Cairn India rose 1.86% after Goldman Sachs raised its 12-month stock target price to Rs.290 from Rs.240.
Fertilizer stocks rallied after the minister of chemicals and fertilizers M K Azhagiri said he would maximize domestic production of fertilizers through modernization and restructure of existing units.
National Fertilizers jumped 9.61%, Tata Chemicals rose 2.61%, Chambal Fertilizers gained 1.98%, Nagarjuna rallied 4.73%, GSFC jumped 5.11% and Rasthriya Chemicals and Fertilizers soared nearly 10%.
Indiabulls Real Estate plunged 6.02% to Rs.233.55 after foreign fund house Morgan Stanley Mauritius sold three lakh shares of the company at a price of Rs.248.60 per share through open market transactions.
Jet Airways jumped 6.26% after it initiated fresh talks with Bahrain's national carrier Gulf Air and Oman Air to convert wet lease agreements into dry lease for the four Boeing 777s and two Airbus 330s respectively. Kingfisher Airlines climbed 10% and SpiceJet rallied 8.09%.
Shipping stocks such as Mercator Lines, Essar Shipping and GE shipping shed around 3% each after a recent sharp surge. Cipla rose 1.65% and Sanghvi Movers jumped 9.54% following the execution of block deals on the BSE.
Banking stocks closed mixed after yields on bonds rose on the announcement of additional Rs.3, 000 crore borrowing program by the government. Bank of India slumped 4.55%, Indus Ind Bank tumbled 4.05%, Kotak Bank fell 2.95%, Punjab National Bank lost 2.55%, HDFC Bank shed 2.41%, IDBI Bank moved down 2.10% and Yes Bank ended down 2.02%, but Union Bank of India rallied 6.26%, State Bank of India rose 1.58% and ICICI Bank added 1.28%.
On the BSE, Essar Oil topped the traded value chart with a total turnover of Rs.923.70 crore followed by Unitech (Rs.300.21 crore), DLF (Rs.289.14 crore), Tata Steel (Rs.271.04 crore) and HDIL (Rs.221.92 crore).
Essar Oil toped the traded volume chart with over 57 million shares followed by Ispat Industries (46.97 million), Unitech (32.58 million), IFCI (32.42 million) and Reliance Natural Resources (18.77 million).
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