Nifty ends above 5900; Bank Nifty up 12% in April series

Key equity benchmark indices closed with hefty gains on expiry day. The Nifty closed at one-month high led by index heavyweights like GAIL, Tata Motors, Dr. Reddys, Axis Bank and NTPC.

The Nifty gained close to 4 percent in the April series. Midcap and smallcap stocks also performed well. Bank Nifty was the star performer with massive 12 percent gains in this series. The hopes of rate cut picked up pace after March inflation data which were announced on April 15 touched 40-month low.

However, volatility played its part in the last one hour of trade. Nifty was languishing around 5860 mark and it suddenly shot up 60 points in two minutes of the last one hour of trade. Traders who had written out of the money 5900 calls, rushed in to cover the losses.

The Sensex closed at 19406.85 up 227 points and the Nifty ended at 5916.30 up 79 points, a level last seen on March 14. About 1278 shares advanced, 1200 shares declined, and 1190 shares remain unchanged.

Shares of auto, pharma, oil&gas, metal, banks and power saw heavy buying in trade today. IT, telecom and realty stocks ended with marginal losses. IT stocks were biggest laggards in this series.

Dr Reddys Labs, GAIL, Tata Motors, NTPC and Axis Bank were top gainers in the Nifty. TCS, DLF, HCL Tech, Infosys and Jaiprakash Associates were top losers.

Axis Bank, the third largest private sector lender, gained four percent after reporting a forecast beating 22 percent year-on-year rise in its fourth quarter net profit at Rs 1,555 crore.

Credit Suisse has maintained its "outperform" rating on Tata Motors, saying its luxury brand Land Rover continues to grow ahead of competition in China, one of its biggest market, even as the overall luxury car demand there has slowed down a bit. The stock was up 4 percent.

Shares of Petronet LNG were in focus amid high volumes after the company signed initial agreement to buy 4mtpa from US-based United LNG.

The Nifty is trading firm around 5900 mark in the afternoon trade. April derivatives contracts will expire today. Nifty has surged close to 350 points in last six trading sessions.

Asian shares are up with recovering commodities and views that a run of weak global economic data will encourage major central banks to keep or deepen their monetary stimulus improving risk sentiment. European markets are flat.

The breadth of the market is also positive. About 1232 shares have advanced, 977 shares declined, and 1459 shares are unchanged.

Heavy buying is seen in oil&gas, auto, metal, banks and power stocks. BSE IT index is down 1 percent. Dr Reddys Labs, Axis Bank, Grasim, NTPC and Cairn India are top gainers on the Nifty. HUL, TCS, HCL Tech, DLF and Infosys are top losers.

Analysts Views
Prabhat Awasthi, head of equity research & MD, India - Nomura Financial Advisory & Sec believes fall in commodity price alone is not a solution to India's growth woes, which are structural in nature.

The consumption cycle is still very slow. Current account deficit is improving also because of growth coming off. So there is interest rate story compared to growth story. That's why the upside will not be runaway market,'' he said in an interview to CNBC-TV18.

Given the fact that macros are showing some signs of improvement and a repo rate cut of 25 basis points by the Reserve Bank of India (RBI) is widely expected on May 3, Vineet Bhatnagar of PhilipCapital says, private banks and autos will continue to look strong at least in the first few trading sessions of May series.

However, he expects market participants to book profits if the central bank eases in May.

In earnings to watch out for today, a CNBC-TV18 poll sees Idea clocking 16 percent profit and 5 percent revenue growth in Q4. Bata's profits are likely to rise to rupees 40 crores while revenue growth is seen modest at 15 percent. Margins however could be under pressure. JSPL will also declare numbers

Key equity benchmark indices are trading firm on expiry day. The Nifty briefly touched 5900-mark in late morning trade. The April derivative series will expire today and one can expect a bout of volatility in the last one hour of trade.

Shares of oil&gas, auto, power, metal and banks are witnessing decent buying in trade today. IT stocks resume downtrend after closing in green on Friday. The broader market is also seeing some fireworks. Stocks like Mahindra & Mahindra Financial, DB Realty, CESC and Bombay Dyeing are up 5-10 percent.

The companies announcing results today are Biocon, IDBI Bank, Idea Cellular, Indiabulls Real Estate, Jindal Steel, L&T Finance Holdings. Tomorrow, Hero MotoCorp, ICICI Bank and Maruti Suzuki are some of the heavyweights reporting their Q4 results.

Axis Bank, NTPC, IndusInd Bank, Cairn India and Dr Reddys Labs are top gainers in the Nifty. TCS, HCL Tech, Infosys, BHEL and Ranbaxy Labs are top losers.

Gains in shares of Jet Airways are down to 12 percent after stock surged 20 percent in the opening bell on Etihad deal. SpiceJet on the other hand has rallied further.

Gujarat NRE Coke  shares rallied three percent Thursday after the company said its board is considering  a fund-raising proposal on Monday.

Non-banking finance company Mahindra & Mahindra Financial Services  rallied 20 percent in early trade to hit a 52-week high of Rs 247.25 on Thursday after reporting strong fourth quarter numbers.

Dish TV  gained more than one percent on Thursday after brokerage house UBS recommended a buy on the stock. UBS has set a price target of Rs 100 for the stock.

The market was holding firm boosted by oil and gas, auto and power stocks.  The Nifty was gradually inching closer to the psychological 5900-mark as it gained 46.90 points to be at 5883.80. The Sensex was up 125.93 points at 19305.29.

Buoyed by the Etihad deal , Jet Airways (up 13.3 percent) continued to be investors' darling.

M&M Financial surged 10 percent on the back of strong fourth quarter earnings. Its net interest income (NII) grew 32 percent at Rs 721 crore while profit after tax (PAT) saw a growth of 43 percent to Rs 346 crore due to an exceptional income of Rs 30 cr on account of profit on stake sale of subsidiary.

Nomura reiterated buy on the stock with target price raised to  Rs 250 on improved outlook.

Petronet LNG was 2 percent after the company signed an initial agreement to buy 4 mtpa LNG from US-based United LNG.

Other big gainers were NTPC, Tata Motors, ONGC< Dr Reddy's Lab and GAIL.

Meanwhile, Infosys, Wipro, TCS, HUL and HDFC Bank TCS were top losers in the Sensex.

Benchmark indices opened firm Thursday, but traders expect the session to be volatile because of expiry of futures and options contracts. The Sensex was up143.33 points at 19322.69 and the Nifty was up 46.60 points at 5883.50.

Bank, metals, oil and gas and auto stocks were lending support to the indices.

Jet Airways was biggest gainer in early trade on news of Etihad picking up a 24 percent stake in the company at a substantial premium to the market price. Brokerage house Citi has raised its target price for the stock to Rs 766 following the deal.

Shares of rival carrier SpiceJet rallied aropund 10 percent in anticipation of the company too inducting a strategic investor.

Axis Bank was up 1.1 percent as it reported a forecast beating 22 percent year-on-year rise in its fourth quarter (Jan-March) net profit at Rs 1,555 crore. Net interest income (NII) or the difference between interest earned and paid out, rose 24 percent YoY to Rs 2,665 crore.

Key gainers in the Sensex included Tata Motors (up 1.9 percent), Bajaj Auto (up 1.7 percent), GAIL, HDFC and Dr Reddy's Lab.

Idea Cellular, JSPL & IDBI Bank will declare fourth quarter earnings today.

Meanwhile, technology stocks were still under selling pressure with Infosys, Wipro and TCS being the top losers in the Sensex.