Helped by good global cues, the indices opened at new lifetime highs and held on to their gains till early afternoon. They dipped in mid-afternoon trades and gave up a major part of their gains. They recovered partly in the last hour of trade and ended with decent gains.
Sensex opened at a new lifetime high of 14028 while Nifty saw a new high of 4033. Both indices closed at new lifetime highs.
Sensex closed with gains of 63 points at 13938 and the Nifty gained 15 points to end at 4016. Nifty December futures closed at a premium of 3 points to the spot index.
Tata Steel was firm throughout the session and saw major buying in afternoon trades. The stock finally ended 5.23 per cent higher and was the best performer among index stocks. SAIL closed 1.86 per cent higher
Jet Airways rallied 4.17 per cent on lower crude oil prices.
Reliance Communications surged 3.17 per cent on reports of a large tender for telecom equipment. Bharti Airtel closed 1.28 per cent higher.
Reliance Industries gained 1.56 per cent while IPCL gained 3.03 per cent.
Infosys ended with gains of 1.44 per cent and HCL Technologies closed 2.14 per cent higher.
L&T was another major gainer, closing 2.75 per cent higher.
Zee Tele was the worst performer among index stocks, losing 3.46 per cent.
Tata Power gave up all its gains from yesterday and more, ending 2.88 per cent.
Suzlon Energy lost 1.73 per cent while Siemens gave up 1.59 per cent.
Gujarat Ambuja saw a correction after last week's rally, closing 1.9 per cent lower.
Among banks, HDFC Bank lost 1.33 per cent and PNB gave up 1.23 per cent.
Maruti slipped 1.23 per cent and Bajaj Auto lost 1.14 per cent.
Global markets / crude oil
Decline in crude oil prices and more merger activity pushed up US markets yesterday. Lower oil prices helped allay fears of a slowdown in the US economy.
The Dow index closed nearly 0.75 per cent higher and the S&P 500 added 0.9 per cent. Technology stocks were once again the best performers, and the NASDAQ gained almost 1.5 per cent.
Asian markets were mostly positive following gains in the US indices yesterday and lower crude oil prices. Indonesia was the best performer, rallying nearly 2.65 per cent, while Singapore gained 1.8 per cent. Hong Kong gained 1.3 per cent while Malaysia ended more than a per cent higher. Shanghai gained more than 0.5 per cent.
South Korea lost another 0.4 per cent while Japan closed with losses of more than 0.3 per cent.
European markets opened substantially higher before losing part of the gains. Major indices are mixed in early afternoon trades.
Crude oil prices declined yesterday even as OPEC said it is concerned about lower prices and lower realisations because of cheap US dollar. NYMEX futures closed at $62.44 per barrel yesterday. The commodity has recovered and is back above $63 per barrel in European trades today.
Large-cap news flow
- Reliance Communications may invite tenders for buying telecom equipment for 100 million mobile lines, worth up to $8 billion - according to unconfirmed media reports. Of this, 75 million lines would use GSM technology while the balance would be for WCDMA.
- Reliance Industries is in discussions to acquire the retailing operations of Adani group, according to unconfirmed media reports. Adani Retail has a network of around 50 stores across Gujarat.
- Maruti has launched a new model on the premium hatchback segment, as a replacement for the old Zen, which was withdrawn 8 months back. The new model is called Zen Estilo and would be available in different variants, with prices starting from Rs3.19 lakh.
- VSNL said leading internet company Yahoo has selected the VoIP services of its overseas subsidiary Teleglobe, a leading international provider of services to telecom carriers.
- SBI would raise up to $300 million from a floating-rate note issue in the overseas markets, according to unconfirmed reports.
- Nalco is planning to set up an aluminium smelter and power plant in Indonesia, according to the minister for mines.
- Tata Power has reportedly won a license to manufacture defence electronics systems.
Mid-caps and small caps also started the day on a firm note and outperformed the frontline stocks till mid-afternoon. However, they lost a major part of their gains later in the day and ended with modest gains.
The CNX Mid-Cap index ended with gains of 15 points, or 0.28 per cent, at 5161. BSE mid-cap index gained 0.18 per cent and the BSE small cap index ended with gains of 0.34 per cent.
IVP and Malu Paper ended the day locked in the 20 per cent upper circuits while HOV Services gained close to 20 per cent.
Media Video added 17.69 per cent and GTL Infrastructure gained 10.99 per cent.
Flex Industries, NRC, Eastern Silk, Lakshmi Precision Screws and Sterling Tools closed at 10 per cent upper circuits.
Today's Writing, SPL Industries, NEPC India, Vindhya Tele, Godfrey Philips, ICSA, GM Breweries, Indian Hume, Jagran Prakashan and Gangotri Textiles were among the major mid-cap losers.
Mid-cap news flow
- Peninsula Land has clarified that the company is committed to investing up to 25 per cent in every investment made by property funds floated by the promoter group. The promoter group has floated two funds, which hope to raise Rs500 crore and $350 million respectively. A subsidiary floated by the company would manage the funds, which would be predominantly invested in tier-I cities.
- Sandesh has announced joint rates for advertising in its own newspaper and Times of India in Gujarat, following an earlier agreement with Bennett, Coleman & Co.
- Jagran Prakashan would launch a new Hindi-language daily newspaper 'I-next' targeted at the youth segment.
- The board of California Software would meet next week to consider a preferential allotment of 5.56 lakh equity shares.
- Sanwaria Agro would raise up to $12 million from institutional investors.
- FACT has clarified that the company has floated tenders for participation in various expansion programmes of the company. FACT is also considering promotion of food park, high tech park and defence ancillary park.
- The board of Lakshmi Precision Screws would meet next week to consider a preferential issue of 10 lakh equity shares.
- Greenply Industries has signed an agreement to sell carbon credits worth €0.5 million every year.
- Shareholders of Hinduja TMT have approved the de-merger of HTMT Technologies.
- The board of Aftek would meet later this week to consider the merger of two privately held entities with the company.
- Surana Industries would issue equity shares and convertible warrants to promoters and other investors on a preferential basis and may also go on for an FCCB issue.
- Ansal Properties said its QIP placement opened yesterday and would close on 08th December.
- The board of RS Software would meet early next week to consider a rights issue of equity shares in the ratio of one share for every 2 shares at a price of Rs65 per share.
- The board of Asian Tea would meet early next week to consider the draft prospectus of the proposed equity issue.
- The board of Subex Azure would meet next week to consider the sponsored GDS issue.
- Asian Hotels has appointed consultants to submit a plan for restructuring the company's operations.
- Hexaware has completed the acquisition of a US-based company for $25 million in cash and another $9.3 million payable in future depending on financial milestones. The company expects total revenues to exceed $100 million after the acquisition.
- Pearl Global has received an export order worth $0.5 million.
- Kale Consultants would deliver IATA's e-freight programme in India, aimed at simplifying air freight handling business.
- MSL Projects has won new orders worth Rs21 crore for road repair works in Pune.
- India Infoline would sell one of its subsidiaries to DSP Merrill Lynch.
- The board of Borosil Glass will meet to consider a new plant in Uttaranchal and a preferential issue of convertible warrants to promoters.
*Disclaimer: The author may have positions in some of the stocks specifically mentioned above at the time of writing this article. This analysis / report is only for the purpose of information and is not an investment advice. Readers are advised to consult a certified financial advisor before taking any investment decisions. While efforts have been made to ensure the accuracy of the information provided in the content the author or publisher shall not be held responsible for any loss caused to any person whatsoever.