Market update: Sensex opens above 14000; sheds part gains

Helped by gains across Asia, frontline Indian indexes opened firm today. However, sustained weakness in technology stocks and the decline in ONGC have forced the indexes to shed part of the gains. Other Asian indexes have gained on speculation about an early interest rate cut by the US Fed.

Sensex opened at 14045 and rallied to a high of 14067. The index is trading higher by 48 points at 13982 at 11.10 AM IST.

Nifty opened at 4118 and saw a high of 4158. The index is now trading higher by 19 points at 4136.

Oil marketing stocks are doing very well after the decline in crude oil prices. HPCL has surged more than 4 per cent and BPCL is trading nearly 3.5 per cent higher.

Among other oil & gas stocks, Reliance Industries has added more than 1.5 per cent and Gail India is trading more than 1.5 per cent higher.

Among metals, Nalco has gained close to 1.5 per cent and Tata Steel is trading more than a per cent

Bharti Airtel has gained close to 1.5 per cent and VSNL is trading more than a per cent higher.

ABB and Ranbaxy are the other major Nifty gainers, both trading around 2 per cent each higher.

Technology stocks remain weak today as well. Satyam is the worst performer among Nifty stocks with losses of over 1.5 per cent while Infosys has lost over a per cent. Wipro is down close to a per cent.

ONGC has lost over a per cent.

Among pharma stocks, Dr. Reddy's and Cipla have lost close to a per cent each.

Tata Power continues to correct and has lost nearly a per cent.

MTNL, ICICI Bank and Gujarat Ambuja Cements are the other Nifty losers.

Mid-caps and small caps have extended their gains from the previous week. The NSE mid-cap index is now trading with gains of close to 0.25 per cent. BSE mid-cap index has gained 0.45 per cent and the BSE small-cap index is trading 0.65 per cent higher.

Entertainment and related stocks are showing no signs of a correction after last week's sharp gains. Cinevistas is locked in 20 per cent upper circuit for the second session while Crest Animation is locked in 10 per cent upper circuit. Inox Leisure has added more than 5 per cent while K Sera Sera has gained 7 per cent.

Kinetic Motor is locked in 10 per cent upper circuit.

Khandwala Securities, Jindal Photo, Birla VXL, JBM Auto, Enkei Castalloy and Nagarjuna Fertilizers are the other major gainers among mid-caps and small caps.

IVP, GSFC, BSL, Garware Wall Rope, Teledata, BAG Films, MGF and Hitech Gear are the other major losers among mid-caps and small-caps.

Thomas White Global Research, part of the Thomas White International Group, publishes capital market research for global institutions and investment banks.

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