Mkts end wk +ve ahead of Tuesday's trust vote

By Tanvir Gill, CNBC-TV18:

The Sentiment in the market has picked up in today’s session. The Sensex went up 3% - 4% higher higher to 13,635. It almost seems like the market sensed something that we perhaps don’t know as of now conclusively. There could be some bit of political interest in the sentiment build up, particularly in the last two-hours of trade.

The Nifty gained 3.5% and went above the 4,000 mark again. It gained 145-points. The whole of Asia was not doing too much in today’s session and was practically ranged. There was a build up and interest spillover into the broader market as well.

The midcap Index, the smallcap Index and the Nifty Junior registered some handsome gains, particularly the liquid side of the market.

Things looked pretty upbeat on the demands decline front as well. There was almost a 849 to the advances with about 389 onto the declines. That was an encouraging picture on the market. On the futures and options side, discount trimmed. A lot of analysts believe that a bout of short covering helped us go higher in today’s session, with about 51 lakh shares being added in open interest.

The turnover reflected the fact that today’s marked recovery was attributed to primarily action on the futures and options side. It can’t be said conclusively though. 71,000 crore done in total. Much higher than what we clocked in yesterday’s session and have been doing over the last few weeks. F&O contributed about 52,000 crore. There could be some bit of long positions build up also that we would have seen on the Index with about almost 17,000 crore coming in from BSE cash and NSE cash put together.

Sectorally it was all about banks, real estate, oil and gas. On the flip side IT got badly hammered on the back of certain earnings concerns going forward for stocks such as Satyam and Wipro.

ICICI Bank was up almost 12%. It's been a while since we have seen banks come in on focus. Most banks ran up on very strong volume actions . A part of it was attributed to the bond market rally and the fact that crude has cooled off internationally. We had inflation also come in higher at 11.91%. But the rise was at a declining pace from the week ago figure. So that seems to have brought about a resurrection of sentiment in this space.

Real estate, DLF and Unitech both closed with very handsome gains on fairly higher volumes. Reliance Industries picked up. Almost 4.5% interesting action was seen on the futures and options side. ONGC was up, BPCL, GAIL also followed suit. The energy pack Power Grid and Reliance Infrastructure erstwhile Reliance Energy did fairly well for themselves on the back of higher volumes.

IT was the sore point in today’s session and the entire pack crumbled. Satyam lost about 7.5% guidance and this was not very promising. It did not match street expectations. Wipro's margins came off and the stock slid. HCL Technologies continued its grind downwards and Infosys also could not save the day for itself.

Apart from that the liquid universe was pretty much excited. IDFC on the back of some decent numbers, 15% were very huge volumes in that stock. Chambal Fertilisers rose very handsomely in today’s market. We also had a couple of results impacts coming in on Polaris which closed up 4%, Gujarat NRE Coke on the back of a bonus announcement looked very strong.

Net-net it was a positive close and a great way to end the week almost an anti-climax. Everybody thought that we would be nervous ahead of the all important political event and nobody would take directional calls on the market but it seems like the market is reading into the event in a very different light than what we are expecting right now.