Mkts end with modest gain; RIL, BHEL, L&T, RComm drag

Markets have ended with modest gain on the back of buying support from technology, FMCG, auto, metal, banking, realty and power stocks. However, private oil companies and large capital goods stocks witnessed selling pressure. It started the first day of week on a stronger note and remained bullish till afternoon trade. But in late trade, due to huge sell off in private oil and major capital goods stocks, it has given up entire gain and turned into flat territory.

Private oil companies like Reliance Industries and Cairn India have beaten down very badly today, which butchered indices in late trade. Reliance Ind fell nearly 5% from day's high. The main reason behind this fall in these stocks is that some reports suggest Samajvadi Party has demand for windfall tax on private oil companies in support to Nuclear Deal, which will spell doom for private oil companies like Cairn, Essar Oil and RIL. Windfall profit tax is a tax levied on oil & gas exploring companies which incur huge profits when crude prices are high.

The Sensex has slipped over 260 points and Nifty over 80 points from day's high of 13,793.39 and 4114.50, respectively. The Sensex closed at 13,525.99, up 71.99 points or 0.54%. Nifty was up 14 points or 0.35% to settle at 4030.

Biggest contributors to both indices were SBI, Infosys, ITC, Satyam, Wipro, Bharti Airtel and HUL while draggers include Reliance Ind, Reliance Comm, Cairn India, BHEL, L&T and Tata Motors.

Fresh short buildup has seen in Nifty July futures, which ended with discount of 54 points. Oil & Gas stocks like Reliance, Cairn & Reliance Petro have seen short build up and even sugar stocks like Bajaj Hind, Balrampur chini and Shree renuka seen short build up. However, IT stocks witnessed fresh long build up.

Market breadth was positive; about 1945 shares have advanced whiel 956 shares declined. Nearly 237 shares remained unchanged.

Amongst frontliners, Siemens was up 6.36%, GAIL 4.58%, Maruti Suzuki 4.44%, Satyam 4.44%, Jaiprakash Asso 4.47% and M&M 4.40% whereas Cairn India fell 5.42%, Reliance Comm -4.20%, Reliance Ind -3.38%, Reliance Petro -2.86%, BHEL -2.26% and Tata Motors -2.07%. 

BSE Midcap Index went up 1.17% to close at 5,339.81 and Small Cap Index up 143.34 points or 2.22% at 6,593.01. Amongst midcap stocks, Deccan Aviation, SpiceJet, HMT, SREI Infra, STC India, Elecon Eng, ING Vysya Bank, Essar Shipping and JSW Holdings have gained 10-24%.

In the small cap segment, ITI, Munjal Showa, EIH Assoc Hotel, Country Club, Ansal Housing and Jayaswal Neco were up 10-16%.

Aviation stocks were buzzing in today's trade on the news of mergers and acquisitions in sector. Deccan Aviation was up by 24.06%, SpiceJet 21.80% and Jet Airways 5.62%.

FMCG Index has outperformed other indices, which up 2.75% at 1,992.65. United Breweries, United Spirits, ITC, HUL and Dabur India shot up around 3-9%.

Technology stocks witnessed good buying interest ahead of first quarter numbers of IT bellwether, Infosys Technologies. IT Index jumped up by 107.23 points or 2.64% at 4,175.72 as buying seen in Financial Tech, Satyam, Mphasis, HCL Tech, Infosys, Wipro, Tech Mahindra and Patni Computer.

Auto Index rose 2.23% at 3,508.96 due to gain in Apollo Tyres, Hind Motors, M&M, Maruti Suzuki, Exide Industries, Hero Honda, Ashok Leyland and Bajaj Auto.

Metal stocks like JSW Steel, Jindal Steel, Jindal Saw, Ispat Industries, Hindalco, Tata Steel, SAIL and Guj NRE Coke have gained. Index went up 220.35 points or 1.83% at 12,257.99.

Bankex surged 1.24% at 5,892.79 on the back of buying in SBI, Kotak Mahindra, Bank of India, IDBI Bank, Oriental Bank, Bank of Baroda and Karnataka Bank.

Realty Index was up 0.66% to close at 4,660.69 as buying seen in Peninsula Land, Akruti City, Ansal Properties, DLF, HDIL and Unitech.

Power stocks like GVK Power, GMR Infra, Lanco Infratech, Neyveli Lignite, Power Grid Corp, Torrent Power, Suzlon Energy, Punj Lloyd, NTPC and Reliance Infra have charged up. Index ended with a gain of 0.62% at 2,320.46.

Capital Goods Index closed flat at 10,708.42, a gain of just 0.2%. Bharat Bijlee, Siemens, Jyoti Structure, Walchandnagar, Areva T&D, Thermax, Alstom Projects and ABB gained while Triveni Engg, BHEL, Bharat Elec, Rel Ind Infra and L&T lost ground.

However, Healthcare Index fell just by 0.36% to finish at 4,108.58 due to selling in Lupin, Piramal Health, Biocon, Apollo Hospital, Glenmark, Novartis India, Dr Reddy's Labs and Ranbaxy Labs. On the other hand, buying has seen in Panacea Biotech, Dishman Pharma, Orchid Chemical, Opto Circuits, Wockhardt and Sterling Bio.

Oil & Gas Index plunged 2.03% or 184.02 points at 8,882.14 due to sell off in Cairn India, Reliance Ind, RNRL and Essar Oil. However, all government oil and gas companies like GAIL, Petronet LNG, BPCL, HPCL, IOC and ONGC have gained. Crude August Futures was trading at US $ 143.83 per barrel on the NYMEX.

Most active counters on the bourses were Reliance Ind, Reliance Comm, Reliance Infra, L&T, Reliance Petro and ICICI Bank.

Turnover traded by the markets stood at Rs 61,828.71 crore. This includes Rs 10,427.06 crore from NSE Cash segment, Rs 44,634.29 crore from NSE F&O and the balance Rs 6,767.36 crore from BSE Cash segment.

On the global front, Asian markets ended higher. Shanghai Composite was up 4.6%, Hang Seng 2.28%, Nikkei 0.92%, Straits Times 1.44%, Taiwan Weighted 1.56% and Kospi 0.11% while Jakarta Composite lost 0.47%.

European markets were trading higher, at the time of writing market report. FTSE 100 was up 0.47%, CAC 40 0.67% and DAX 0.9%.

Markets Snapshot

• Markets lose most of the days gains in last hour of trade
• Sensex ends up 72 pts at 13526; off nearly 270 pts from the day's high
• Nifty ends up 14 pts at 4030; off 85 pts from the day's high 
• BSE Small-Cap Index up 2.2%; CNX Midcap Index up 0.8%
• Reliance Ind led to downfall from day's high; stock slips nearly 5% from day's high
• Oil & Gas stocks slip on news of imposition of windfall gains tax on private oil cos; Cairn India down 5.4%; Reliance down 3.3%;  
• Aviations stocks active on M&A buzz in the sector: Deccan Aviation up 24%, SpiceJet up 22%
• BSE FMCG Index up 2.75%; HUL, ITC up nearly 4%
• BSE IT Sector Index up 2.64% ahead of Infosys earnigs this Friday; Satyam up 4.4%; Financial Technologies up 4.2%; Wipro up 3.5%
• BSE Auto Index up 2.2%; Maruti up 4.4%; M&M up 4%
• BSE Metals Index up 1.8%; Jindal Steel up 4.5%; Hindalco up 2.8%; Tata Steel up 1.8%; SAIL up 1.7% 
• Index Gainers: Siemens up 6.4%; GAIL up 4.6%; SBI up 4.2%; ACC up 4.2%
• Index Losers: Reliance Comm down 3.9%; RPL down 2.9%; Zee Ent down 2.22%
• Other Gainers: HMT Ltd 14.4%, DCW up 12%, SREI Infra 11.5%
• NSE Advance Decline at 3:1
• Total F&O turnover at Rs 44,635 cr Vs Rs 44,222cr  
• Total market turnover at 61,829 cr Vs Rs 62,387 cr yesterday

F&O Snapshot

• Nifty futures sees fresh short buildup; discount widens to 54 points
• Oil & Gas stocks like Reliance, Cairn & RPL sees short build up
• Sugar stocks like Bajaj Hind, Balrampur chini, Shree renuka sees short build up
• IT Stocks sees fresh long build up
• NSE F&O turnover at Rs 44635 cr
• Optons Activity
  Hugh build up in Nifty 4000 put (Nearly 49%)
  Out of the money call option sees unwinding
  Nifty 4000 put adds 13.2 lakh shares
  Nifty 4400 call sheds 7.7 lakh shares
  Nifty 4300 call sheds 4.2 lakh shares
• Star Trade:
  Deccan Air up 20.3%; adds 1.6 lakh shares
• Fresh Shorts:
  RPL dn 3.3%; adds 19.7 lakh shares
  Cairn dn 6.5%; adds 9.4 lakh shares
  Reliance dn 4.1%; adds 4.1 lakh shares
  Bajaj Hind dn 7.5%; adds 4.4 lakh shares
• Short Covering:
  IFCI up 4.9%; sheds 10.7 lakh shares
  Nagarjuna Const up 7.4%; sheds 3.3 lakh shares
  JP Asso up 4.4%; sheds 3.2 lakh shares
• Fresh Long:
  Siemens up 6.5%; adds 1.2 lakh shares
  Satyam up 3.6%; adds 6 lakh shares
  SBI up 3.9%; adds 3.2 lakh shares

Contd on page 2...