Nifty ends above 3500; IT Index up 5 per cent, Metal dips 2 per cent

14 October 2008

Markets ended higher on account of buying in technology, pharma, realty, capital goods, few banking and telecom stocks. Midcap and small cap stocks too were on buyers' radar. Strong global cues were being supportive for markets. However, metal, few oil and power stocks were under pressure.

Benchmark indices had started on a strong note; the Sensex and Nifty had jumped over 500 points and 150 points in early trade, respectively due to sharp rally in global markets. However, they had come off their highs in second half of session on account of profit booking at higher levels and sell off in metal stocks, but they didn't slip into the red and remained in positive terrain throughout the day.

The Sensex rose 174.31 points or 1.54%, to settle at 11,483.40 and the Nifty closed at 3518.65, up 27.95 points or 0.8%. Both indices lost 387 points and 130 points from their intraday high of 11,870.22 and 3648.25, respectively.

Fresh shorts seen in Nifty Futures at higher levels. Nifty Futures slipped into discount of 7.75 points from premium. Fresh short build up was seen in metal stocks. ONGC saw fresh short build up; its Rs 880 put added 3.9 lakh shares. Aggressive call writing was seen at 3700 strike price. Mix of short covering and long build up was seen in private sector banks. However, long build up continued on technology stocks.

Among the frontliners, Satyam, Infosys, Idea Cellular, Jaiprakash Associates, ICICI Bank and Reliance Infrastructure shot up 5-8%. Tata Communication rose 11.93% and Sun Pharma gaind 8.89%.

However, Reliance Communication, Hindalco, SAIL, NALCO and ONGC fell 4-6%. HDFC Bank declined 3.47% and NTPC lost 2.70%.