11 October 2011

Sensex rises 1% mirroring global rally; BPCL, ONGC dip


Indian equity benchmarks moved up 1% in the opening trade on Tuesday, following a global rally that was fuelled by a hope to stem stem Europe’s debt crisis. Yesterday German and French leaders promised to take a concrete step to mitigate the problem that has snowballed into a crisis.
The 30-share BSE Sensex gained 160.88 points at 16,718.11 and the 50-share NSE Nifty climbed 48 points to 5,027.60.
Aditya Narain of Citigroup said India should offer some upside in near-term. "Valuations are reasonable, earnings & growth for FY12 have been cut sharply, rate/inflation cycle is likely to peak, commodities have begun to weaken and consensus is very bearish. We remain optimistic on the market," he explained.
Hindalco, Sterlite Industries, JSPL, Bharti Airtel, HDFC Bank, ICICI Bank, SBI, Kotak Mahindra Bank, DLF, L&T, Reliance Communications, Reliance Industries, TCS, IDFC and Tata Motors were the major contributors in the early trade.
HUL, ITC and Maruti too were on buyers' radar.
However, BPCL and ONGC declined marginally due to rise in crude oil prices.
The CNX Midcap jumped 67 points to 7,054. About four shares gained for every share falling.
Jaypee Infra shot up 11%.
Jubilant Foodworks, Educomp, Zee Learn, CMC (ahead of numbers) and Hexaware were up 2-4%.
However, Sun TV plunged 4% and Camlin lost 9%.
Global Cues
Asian markets were trading higher. Hang Seng jumped 3%. Nikkei, Straits Times, Kospi and Taiwan gained 2%. Shanghai rose 0.8%.

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