Markets rebound sharply led by CG, banks, realty, power stocks

17 July 2008

Markets have rebounded smartly on the back of strong global cues and some cool off in crude oil prices. It has broken five days losing streak and recovered majority of losses. Rally has been led by infrastructure, rate sensitive, oil and technology stocks. However, metal stocks remained under selling pressure. Midcap and small cap stocks were also on buyers radar. Sensex closed above 13000 and Nifty above 3900 levels.

The Sensex surged 574.55 points to hit an intraday high of 13,150.35 as against its previous close of 12,575.80. It closed at 13,111.85, up 536.05 points or 4.26%. Nifty Fifty Index went up 152.05 points to touch a high of 3968.75 before closing the day at 3947.20, down 3.42% or 130.5 points.

Reliance Industries, ONGC, DLF, SBI, L&T, TCS, HDFC, ICICI Bank and Infosys Tech were top contributors in the gain of both indices.

Most of the action seen in stock futures space with a long bias. Nifty July Futures ended with a discount of 15 points. More than 30% OI build up was seen in stocks like Colgate, LIC Housing, Mphasis and Polaris. Large cap IT stocks saw short covering. Fresh long has seen in Infrastructure stocks like Punj Lloyd, Nagarjuna Construction and JP Associates. Hugh unwinding was seen in Nifty Call Options.

BSE Bankex was star of the day, shot up by 327.36 points or 6.06% to settle at 5,727.60. Axis Bank, Union Bank, SBI, Bank of India, ICICI Bank, HDFC Bank and Kotak Mahindra have gained 5-9%.

Capital goods stocks like Siemens, Punj Lloyd, Crompton Greaves, L&T, Astra Microwave, Areva T&D and BHEL were up 5-9%. Index rose by 601.48 points or 5.92% at 10,762.01.