German parliament clears bailout fund expansion plan

The German Parliament has approved crucial reforms to the European Financial Stability Facility (EFSF) that would allow the fund to participate in the primary market and to recapitalize European banks.

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Sensex ends 252 pts higher on expiry day

A smart rally on the expiry day, led by heavyweights, helped the Nifty to shut shop above the key psychological 5,000 mark. Oil & gas, private banks, technology, FMCG and auto stocks played a key role in today's upmove. The 30-share BSE Sensex rallied 252.05 points or 1.53%, to close at 16,698.07 and the 50-share NSE Nifty rose 69.55 points or 1.41%, to end at 5,015.45.  

Ambareesh Baliga, COO, Way2Wealth said, the downside in the market is limited now. He doesn’t see the Nifty going below 4,750-4,800. The upsides, he says, would also be capped at 5,100-5,250.

Meanwhile, the favourable verdict in German Parliament over European bailout package failed to lift mood in Europe. France's CAC and Germany's DAX rose 0.2-0.7% while Britain's FTSE were trading 0.6% down at the time Indian markets closed. Even Dow Jones and Nasdaq futures came off their day's highs and were up around 0.8%.

Andrew Freris, chief investment advisor Asia of BNP Paribas wealth management believes that Germany will vote in favour of this move. Currently, 17 countries have voted in favour and 7 are yet to vote.

On the home turf, the BSE Auto and IT surged 2% each. FMCG, Oil & Gas, Bank and Power indices were up 1-1.8%.

Heavyweight Infosys shot up 3.4%, to close above Rs 2,500; the stock has seen smart recovery from August lows of near Rs 2000 level.

From the oil & gas space, ONGC and Reliance Industries rose 2.2% and 1.3%, respectively.

About 603 shares advanced as against 824 shares declined on National Stock Exchange. Total traded turnover on both exchanges was more than Rs 2.43 lakh crore.

Sensex choppy

The benchmark Nifty reclaimed the 5000 mark in the opening trade following positive trend in SGX Nifty but took a U-turn soon after. Markets globally are waiting for a solution to European debt crisis but no unanimous decision could be arrived over terms of Greece's second bailout on Tuesday.

The 30-share BSE Sensex was trading at 16,499, down 25 points after 473 points rally yesterday. The 50-share NSE Nifty fell 6 points to 4,965. 

In the largecap space, DLF, M&M, HUL, Sesa Goa, Bharti Airtel, Sterlite Industries, Reliance Infrastructure, Hindalco, L&T, Bajaj Auto, Reliance Power, BPCL, Reliance Industries, HUL, SAIL and ACC were witnessing selling pressure.

However, Cairn India rose 3% as ONGC issued NoC to Cairn-Vedanta deal. ONGC rose 0.8%.

Infosys, Wipro, HCL Tech, TCS, Reliance Capital, Reliance Communications and Tata Power were other gainers among largecaps.

About 373 shares advanced as against 451 shares declined on NSE. The CNX Midcap rose 18 points to 7,187.

JSW Steel fell 3% and Jet Airways was down 2%.

Shree Renuka Suguar, Balrampur Chini and Triveni Engg were down over 0.5%.

However, Hathway Cable, Hexaware Tech, Dabur, Titan Industries and Sintex were up 0.8-1.5%.

Vivimed Labs gained 3.5%.

Global cues

Asian markets were mixed in trade. Hang Seng was down 0.8% and Straits Times down 0.5%. However, Shanghai and Nikkei gained 0.20%. Kospi and Taiwan went up 0.4%. 

Tijaria Polypipes IPO opens today

Jaipur based Tijaria Polypipes ' Rs 60-crore initial public offering has opened for subscription today. The company is offering 1 crore equity shares through the issue at Rs 60 per equity share. 

The issue to the public will constitute 42.33% of the fully diluted post-issue equity share capital of the company. The issue will close for subscription on September 29.

Tijaria Polypipes manufactures high-grade HDPE, MDPE and LDPE plastic pipes and sprinkler systems under the brand names of Tijaria and Vikas. At present, the company has an installed manufacturing capacity of 20,664MT HDPE pipes, 7,392MT PVC pipes and 7,200MT of PET flakes & granules per year. Its products are used in irrigation, telecommunication, industrial, infrastructure and housing sectors.

It achieved total sales of Rs 118.59 crore in the financial year 2010-11 and a profit after tax of Rs 6.90 core for the same period.

The company now proposes to expand its current manufacturing capacity and diversify into the manufacturing of polyster zippers long chains, mink blankets & PET sheets and also proposes to manufacture the raw materials required for it. The company will manufacture partially oriented yarn (POY), draw texturised yarn (TY) and monofilament yarn all under one roof. The company plans to set up two new units at industrial areas of Rajasthan Industrial and Investment Corporation (RIICO) at Ramachandrapura and Sitapura Extension, close to Jaipur.

The total project cost is estimated at Rs 108.52 crore. For implementing the new project the promoter group has contributed Rs 8.52 crore as equity capital and the company has arranged a term loan of Rs 40 crore from banks.

The lead manager to the issue is Hem Securities Limited, Mumbai and the registrar to the issue is Sharex Dynamic (India) Pvt. Limited.

Great recovery attempt

A handsome recovery from lowest point of the day could not save the market from registering its third consecutive session of loss on Monday. While short covering and a rebound in global markets drove the recovery in the last couple of hours of trade, a steep cut in oil & gas, capital goods, metals, FMCG, power and auto stocks forced a negative closure. A drastic fall in international commodity price too weighed on the market today.

The 30-share BSE Sensex fell 110.96 points or 0.69%, to close at 16051.10 after seeing recovery of 250 points from day's low of 15,801.01. The 50-share NSE Nifty hit an intra-day low of 4,758.85, before closing at 4,835.40, down 32.35 points or 0.66%