Mumbai: The BSE Sensex staged excellent performance on Friday, trimming the major loss for the week as it had shed nearly 500 points in the previous three sessions. Successful completion of the debt swap deal by Greece with market participation at 95.7 per cent helped the global markets to rally.
Short covering may be another reason that fuelled the rally. The BSE benchmark advanced 357.72 points or 2.09 per cent, to close at 17,503.24 supported by 23 stocks. Meanwhile, the NSE benchmark gained 113.10 points or 2.17 per cent at 5,333.55.
Rate sensitives saw huge buying interest ahead of monetary policy review (schedule to be announced on March 15) and even market experts see some action as industrial output dropped to 1.8 per cent in December as against 5.9 per cent in previous month. RBI governor D Subbarao too said they need to reduce bank's statutory liquidity ratio (SLR) going forward. "Number of preconditions need be met before SLR can be cut," he said.
Shares of Multi Commodity Exchange (MCX) closed at Rs 1297.05 on listing day, up 25.68 per cent over issue price of Rs 1032 after hitting an intraday high of Rs 1,426 and low of Rs 1,282.10. In first one-hour session, equilibrium price for the stock was discovered at Rs 1,387 on the BSE.
Greece averted the immediate risk of an uncontrolled default, winning strong acceptance from its private creditors for a bond swap deal which will ease its massive public debt and clear the way for a new international bailout. European markets already priced in this news in last two sessions as they were flat while Asian markets like Nikkei, Shanghai, Hang Seng and Kospi ended 0.8-1.65 per cent higher.
At 2:59 pm: Nifty gains over 100 pts; BSE Bankex up 3.5 per cent
Bulls stayed in power since the opening of market, ahead of major events next week - Budget and monetary policy review. Even Greece's successful completion of the debt swap deal with market participation at 95.7 per cent too boosted sentiment. The BSE Sensex moved up 373 points or 2.18 per cent to 17,518.62 while the NSE Nifty gained 2.27 per cent or 118.28 points at 5,338.70.
Rate sensitives were on buyers' radar today, especially ahead of RBI's monetary policy review on March 15. Experts feel that the RBI may cut CRR to improve economic growth as industrial output dropped to nearly 3-year low.
The BSE Bankex was up 3.5 per cent while Capital Goods and Metal indices were up 4-4.5 per cent.
Shares of ICICI Bank, L&T, Tata Steel, Jindal Steel and Sterlite Industries shot up 5-7 per cent. HDFC, SBI, Tata Motors, BHEL, Bharti Airtel and Hindalco gained 3-3.5 per cent.
Multi Commodity Exchange of India was trading at Rs 1,316.30, up Rs 284.30 or 27.55 per cent over issue price of Rs 1032 a share.
Stocks in news
Gravita India approved 5:1 stock split; the stock tanked 5 per cent.
Essar Oil (up 4.5 per cent) signed an agreement with Indraprastha Gas (down 0.8 per cent) to set up CNG outlets in NCR.
At 2:04 pm: Sensex targets 350 pts rise; ICICI Bank, L&T, JSPL gainers
The BSE Sensex continued to trade sharply higher led by index heavyweights ICICI Bank and L&T. SBI, Reliance Industries, Bharti Airtel, ONGC and TCS too were quite supportive while only six stocks namely M&M, ITC, HUL, Infosys, Wipro and Cipla were in bear grip.
The BSE benchmark was up 353 points at 17,498.57 while the Nifty gained 110.6 points at 5,331.
Shares of MCX were off day's high, though it remained way above its issue price. The stock moved up 29.28 per cent to Rs 1,334.20 on the BSE. Total traded quantity of shares stood at 1.07 crore so far. However, Financial Technologies, promoter of MCX, fell 5 per cent.
ICICI Bank and Jindal Steel were top gainers among largecaps, shooting up over 5 per cent. Shares of L&T, Tata Motors, Tata Steel and Sterlite Industries gained 4-4.5 per cent.
L&T appointed K Venkataramanan as CEOand MD for next three years. Reports that L&T will consider Hexaware acquisition today, but the company denied the same. Hexaware rose 3.5 per cent amid huge volumes.
Oil & gas producers and index heavyweights Reliance Industries and ONGC climbed 1-1.5 per cent. Country's largest lender SBI was up 3.5 per cent while rival HDFC Bank moved up 1.4 per cent.
HDFC, BHEL, Coal India, Sun Pharma, Maruti and DLF among others were up 2-3 per cent.
However, M&M, HUL, ITC and Wipro fell 0.4-1 per cent.
Stock on the move
3i Infotech shot up 5.3 per cent as the company will meet bondholders on April 2 to revise terms.
CLSA upgraded rating for CESC to buy and set new target price at Rs 348/share; the stock was up 6.5 per cent.
Nomura initiated buy rating on Apollo Hospital with target price of Rs 750/share; the stock was up 3 per cent.
European markets were flat amid moderate fall. It seemed to have priced in completion of debt swap deal by Greece. France's CAC and Britain's FTSE were down 14 points while Germany's DAX was flat.
At 1:20 pm: Sensex continues to surge; metals, capital goods lead
The BSE Sensex continued to trades higher on across the board buying in metal, capital good, banks and realty stocks. The BSE metal index, up 3.5 per cent, outperformed all other sectoral indices.
The Sensex was up 322.02 points or 1.88 per cent at 17467.54, while the NSE Nifty was up 100.65 points or 1.93 per cent at 5321.10.
Heavyweights Reliance , ITC , ICICI Bank , HDFC Bank and HDFC were the main contributors to the Sensex rise, which had fallen for three days, as global risk appetite got a boost from signs Greece was moving closer to avert a default.
The market breadth was positive, about 1792 shares advanced, 809 shares declined, and 802 shares remain unchanged.
Shares of Multi Commodity Exchange of India ( MCX ) surged 33 per cent to Rs 1372 with volume of 38 lakh shares on the National Stock Exchange. Sharan Lillaney, research analyst at Angel Broking tells CNBC-TV18 that a 20 per cent upside is possible for MCX over the next 12 months. Angel has a 'buy' rating on MCX.
Stocks on the move
Jet Airways gained over 6 per cent as the company paid February salary dues to 75 per cent staff. Company said it would honor all obligations to its employees and external stakeholders.
Larsen & Toubro was up 4.5 per cent on talks that the construction major is looking to acquiring technology company Hexaware.
L&T appoints K Venkataramanan as CEO & MD. Venkataramanan has been with L&T since 1969. L&T has split the Chairman & CEO Position.
M&M says, could see 'No Production days' in plant at Rudrapur, Nagpur, Jaipur up to 2 Days/week for remaining March. Also see cuts in Tractor production.
At 12 noon: Sensex holds on to early gains; MCX rises over 30 per cent
The BSE Sensex retained its early gains due to consistent buying in banks, capital goods, auto, metals and oil & gas stocks. Even the NSE Nifty managed to hold 5300 level. Shares of Multi Commodity Exchange of India ( MCX ) rose 30.57 per cent to Rs 1,347.50 with volume of 38 lakh shares on the National Stock Exchange.
Asian markets too sustained its uptrend as Greece completed its debt swap deal. About 85.8 per cent of bondholders have accepted Greece bond swap offer. Country has received consent for 152 billion euros. Nikkei rose 1.65 per cent and Hang Seng gained 1 per cent. Shanghai advanced 0.4 per cent.
Back home, the BSE benchmark was trading at 17,450.94, up 305.42 points or 1.78 per cent. Meanwhile, the NSE benchmark gained 96 points at 5,316.70.
Shares of country's largest lenders SBI and ICICI Bank shot up 4 per cent & 3 per cent, respectively; while rival HDFC Bank rose 1 per cent.
Engineering & construction major Larsen & Toubro climbed 4.3 per cent and state-run capital goods major BHEL moved up over 2 per cent.
India's most valued company Reliance Industries advanced 1 per cent. TCS and Bharti Airtel were up 1.5-2 per cent.
Shares of HDFC, Tata Motors, Tata Steel, Jindal Steel, Sterlite Industries and Maruti shot up 3-4.7 per cent.
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However, M&M, HUL and Wipro were losers among Sensex 30, falling 0.3-1.3 per cent.
Mahindra Satyam surged 3 per cent after the company bought vCustomes's BPO biz for USD 27 million.
Liquor baron Vijay Mallya's Kingfisher Airlines was flat at Rs 21. Oil companies resumed fuel supply to Kingfisher last night, but other concerns wiped out morning gains of the stock. Concerns are: IATA suspended Kingfisher as KFA is unable to pay after freezing of bank accounts by I-T department; sources reclaimed that I-T department issued show cause notice to KFA management as KFA owes TDS dues of over Rs 300 crore to I-T dept.
Jet Airways gained nearly 5 per cent as the company paid February salary dues to 75 per cent staff. Company said it would honor all obligations to its employees and external stakeholders.
Larsen & Toubro in its board meeting today will discuss an acquisition of technology company Hexaware (stock up 4.5 per cent).
Most active shares on BSE
Reliance Communications with 23,742,004 shares
LIC Housing Finance with 2,431,229 shares
Indian Bank with 2,111,480 shares
Advancing shares outnumbered declining by 1743 to 727 on the BSE.
At 10:52 am: Sensex gains 2 per cent on broadbased buying; MCX up 33 per cent at Rs 1369
The BSE Sensex extended its early trade gains to 2 per cent supported by 29 stocks. Upmove continued not only in Indian equities but also in global peers on hopes that Greek debt swap deal will get passed soon and ahead of US jobs data. Also there was a short covering after a fall of nearly 500 points on the Sensex in previous three sessions.
Asian markets gained 0.4-1.3 per cent on Friday on the hopes that Greece is a step nearer to averting a default and this may help the Indian market too, said technical analyst Anil Manghnani of Modern Shares & Stock Brokers.
The BSE benchmark moved up 351.16 points to 17,496.68 and the NSE benchmark gained 108 points at 5,328.05 or 2 per cent.
A share of MCX , world's fifth largest commodity exchange, trades at Rs 1,369.20, up 32.67 per cent over issue price of Rs 1032. About 23 lakh shares traded on BSE and 22.94 lakh shares on National Stock Exchange so far.
All sectoral indices were in the green and most beaten down stocks in previous sessions were seeing buying interest. The BSE Metal and Capital Goods indices were up 3.-3.5 per cent. BSE Bankex rose nearly 3 per cent.
Shares of Jindal Steel, L&T, ICICI Bank, Tata Steel, Sterlite Industries, Cairn India and IDFC were top gainers among largecaps, rising 3.7-5.7 per cent. However, only HUL was under pressure among Sensex 30, falling 0.3 per cent.
The broader markets like BSE Midcap and Smallcap indices climbed 1.8 per cent each. About three and half shares advanced for every share declining on the BSE.
At 9:19 am: Sensex up 300 pts; MCX shoots 35 per cent in pre-opening session
The BSE Sensex started off trade with 250 points gap up on Friday following strong global cues. Even the NSE Nifty touched 5300 level on hopes that Greek debt deal will get passed soon.
MCX was at Rs 1,395 (near to expected price), up 35 per cent over issue price of Rs 1032 in pre-opening session. Normal trading session of the world's fifth largest commodity exchange will start only after 10 am. Shares of Financial Technologies, a promoter of MCX, rose 1.6 per cent to Rs 875.
The BSE benchmark gained 303 points or 1.77 per cent at 17,448.75 and the NSE benchmark jumped 94 points or 1.8 per cent to 5,314.35.
Asian markets extended gains today on hopes that Greek debt swap deal will get approved soon. Overwhelming participation from private bondholders indicates that support is still flowing in. Greek officials indicate over 95 per cent participation. Yesterday, even US markets rallied 0.5-1 per cent.
Back home, Tata Steel, SAIL, IDFC, ICICI Bank, Axis Bank, Reliance Industries, L&T, Bharti Airtel, BHEL, TCS and Wipro gained 1.5-3.5 per cent.
The NSE Bank NIfty surged 244 points in early trade.
Reliance Communications gained 2 per cent as about 2 crore shares changed hands on BSE in a block deal.
However, BPCL and HPCL lost 0.7 per cent as these companies are waiting for oil price hike.
About five shares advanced for every share falling on the National Stock Exchange. The CNX Midcap moved up 118 points to 7,589.
In the second line shares, MTNL gained 4 per cent as Business Standard reports that LIC wants to exit MTNL via private placement.
Mahindra Satyam rose 3.5 per cent after the company acquired vCustomes's BPO biz for USD 27 million.
Hexaware Technologies moved up 4 per cent as L&T in today's board meeting will discuss Hexaware acquisition.
Kingfisher Airlines climbed 2.5 per cent after oil companies resumed fuel supply to the company last night. They had cut fuel supply for non-payment. However, IATA suspended Kingfisher. KFA says it is unable to pay IATA as bank accounts frozen.
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