Sensex closes flat to higher; UB group, power stocks rally

Indian shares continued consolidation for the second consecutive session Tuesday. The BSE Sensex rose just 21.07 points to close at 18,694.41 but the UB group and power stocks hogged the limelight.

Meanwhile the 50-share NSE Nifty gained 4.3 points at 5,673.90. Volume has been rising ahead of F&O expiry on Thursday. However, the broader markets outperformed benchmarks with 0.5 percent gains.

Liquor baron Vijay Mallya-led United Breweries group stocks spiked after United Spirits (USL) today confirmed that Diageo Plc, world's biggest drinks company, is in talks to buy a stake in the company.

Analysts say Diageo could be interested in a stake in USL as it will get access to a large and growing liquor market in India and will also get hold of many local spirits brands. And this time around with UB group looking to raise funds to repay debt at loss-making Kingfisher Airlines, a deal is more likely to go through, they feel.

USL rallied 9 percent, which hit a new 52-week high of Rs 1,174 today. Kingfisher Airlines and United Breweries were up 7-8 percent.

UB Holding also hit a 52-week high of Rs 132.45, which surged 17 percent and UB Engineering was up 16 percent.

Mangalore Chemicals and Fertilisers shot up over 12% after leading newspaper reported that two strategic bidders are conducting due diligence to acquire UB Group chairman Vijay Mallya's 30.44 percent stake in the company.

After the government approved debt restructuring plan for state electricity board (SEB), JSW Energy rallied 6.5 percent. Lanco Infratech, Adani Power, Indiabulls Power and Reliance Power were up 0.5-2.5 percent.

But Rural Electrification and Power Finance Corporation fell 1-2.5 percent on profit booking; these stocks had rallied over 25% in previous sessions.

State-run power equipment maker BHEL rose 2.7 percent, continuing gains for the third consecutive session today.

Sugars stocks like Shree Renuka Sugars, Bajaj Hindusthan, Triveni Engineering and Balrampur Chini lost 4-6 percent as the government did not discuss about scrapping the levy sugar quota in yesterday's cabinet meeting.

FMCG majors ITC and Hindustan Unilever jumped 1.8 percent.

Housing finance company HDFC was up 1.25 percent and index heavyweight Reliance Industries gained 0.4 percent. Software services provider TCS went up 0.5 percent.

Drug producer Cipla jumped 2% while its rival Dr Reddy's Labs fell 0.8 percent.

Among auto stocks, commercial vehicle maker Tata Motors fell 1.66 percent and top car maker Maruti lost 2.4 percent.

Shares of Jindal Steel topped the selling list with a loss of 4.35 percent.

Private sector lender ICICI Bank was down 0.4 percent while its rival HDFC Bank gained 0.3 percent.

Shares of ONGC, Sterlite, Tata Steel, Bajaj Auto and Hero Motocorp were down 1-2%.

In the second line shares, Pantaloon Retail shot up 10% today and 50% in 2012.

Anant Raj Industries rallied 20% and Everest Kanto surged 10%.

Shares of Aurobindo Pharma, Unitech, HDIL, Arvind, Alok Industries, S Kumars, VIP Industries, Deccan Chronicle and Manappuram Finance were up 3-6%.

Advancing shares outnumbered declining by 749 to 686 on the National Stock Exchange.

The 30-share BSE Sensex was trading flat to higher due to lack of global and local cues. The volume has been increasing ahead of F&O expiry on Thursday.

The BSE benchmark went up 33.5 points to 18,706.87 and the NSE benchmark rose 9 points to 5,678.60. The broader markets gained nearly 0.5 percent.

London Stock Exchange-listed Vedanta Resources' subsidiary Sterlite Industries and country's largest car maker Maruti went down 2 percent each.

Commercial vehicle major Tata Motors and state-owned oil & gas producer ONGC fell 1 percent each.

Shares of Jindal Steel & Power and Tata Steel were down 3.8 percent and 1.7 percent, respectively.

FMCG majors ITC and HUL were up 1-1.5 percent. State-owned power equipment maker BHEL and drug producer Cipla rallied over 2 percent.

Index heavyweight Reliance Industries, private sector lender HDFC Bank and software services exporter TCS gained over 0.5 percent.

Housing finance company HDFC and utility vehicle maker Mahindra & Mahindra went up 1 percent each.

In the second line shares, Aurobindo Pharma surged 6 percent and Pantaloon Retail extended gains to 10 percent.

Advancing shares outnumbered declining by 750 to 680 on the National Stock Exchange.

Indian shares gained marginal strength amid choppy trade, supported by Reliance Industries, which rose 0.8%. FMCG, capital goods and banks too were quite supportive while metals and auto remained under selling pressure.

The 30-share BSE Sensex rose 56 points to 18,723.9 and the 50-share NSE Nifty moved up 15 points to 5,685. The broader markets too gained somewhat strength as the market breadth was slightly in favour of advances.

State-owned power equipment maker BHEL extended gains to 2%, continuing upmove for the third consecutive session. The share gained over 16% in three days; yesterday the cabinet approved debt restructuring package for state electricity boards.

Public sector lender Bank of Baroda rallied 2.5 percent. Drug producer Cipla and private sector lender Kotak Mahindra Bank rose 2 percent each.

Housing finance company HDFC, cigarette major ITC and FMCG company Hindustan Unilever were up over 1 percent.

Shares of Jindal Steel fell over 4 percent on profit booking. Cairn India tanked 3.5% after the block deal, through which 8% equity changed hands today. Cairn UK was expected to sell stake.

Tata Steel, Sterlite Industries, Maruti Suzuki, Tata Motors, Jaiprakash Associates and Axis Bank were down 1-2.5 percent.

In the second line shares, Anant Raj Industries shot up 20 percent. Puravankara Projects, Pantaloon Retail, Ruchi Soya and Shoppers Stop gained 6-7 percent while Shree Renuka, Tulip Telecom, Bajaj Hindusthan, EID Parry and GSFC lost 3-6 percent.

The NSE Nifty remained in a tight range around 5670 level after shedding early gains. The consolidation for the second consecutive session may be ahead of F&O expiry on Thursday. European markets too lacklustre in early trade.
 
The 30-share BSE benchmark rose 12 points to 18,684.93 while the 50-share NSE benchmark was down 2 points to 5,667.95.

FMCG majors ITC and Hindustan Unilever gained over 1.2 percent. Housing finance company HDFC and software services exporter TCS moved up 1 percent too.

Commercial vehicle major Tata Motors and top car maker Maruti Suzuki lost 1.6 percent each. State-owned oil & gas producer ONGC fell over 1 percent.

Metals stocks extended losses; Tata Steel tanked 2% and Jindal Steel tumbled 2.6% while Sterlite was down 1.8 percent.

Country's largest lenders State Bank of India, ICICI Bank and HDFC Bank trimmed losses to 0.2 percent each from 0.5-1 percent.

Most active shares on exchanges were Bayer Cropscience, Cairn India, United Spirits, SBI, SKS Microfinance, Axis Bank and ICICI Bank.

Cairn India tanked 3% after eight percent equity changed hands on the NSE at Rs 325 a share. Cairn UK was expected to sell 15.3 crore equity shares via block deal today.

Bayer Cropscience, which touched a 52-week high of Rs 1,065, was up 1 percent after about 15% equity changed hands on BSE at Rs 1,012.95 a share.

SKS Microfinance was locked at 5% upper circuit after seven percent equity changed hands on BSE at Rs 117.15 a share.

Indian equity benchmarks continued to hover around their previous closing values after losing over 100 points on the Sensex. The rise in defensives like HDFC, TCS, ITC and Cipla has counterbalanced the weakness in banks, metals, auto and oil & gas stocks.

The 30-share BSE Sensex declined 0.38 point to 18,672.96 and the 50-share NSE Nifty fell 8 points to 5,661.90.

Country's largest commercial vehicle maker Tata Motors and top car manufacturer Maruti Suzuki were down 2% each.

Jindal Steel, which rallied quite sharply in past few sessions, fell nearly 3 percent on profit booking. Shares of Tata Steel and Sterlite Industries dropped 1.5-2 percent.

Top lenders State Bank of India, ICICI Bank and HDFC Bank slipped 0.3-0.8 percent. State-owned oil & gas producer ONGC was down over 1 percent.

Cigarette major ITC, housing finance company HDFC and top software services exporter TCS gained over 1 percent.

Drug producer Cipla rallied 2.5 percent while shares of L&T, Hindustan Unilever, M&M and Sun Pharma rose 0.4-0.8 percent.

The broader markets too were flat as the market breadth was neutral.

In the second line shares, Anant Raj Industries, Jindal Stainles, Ruchi Soya, Pantaloon Retail and Redington rallied 4-6 percent while Shree Renuka, Tulip Telecom, Bajaj Hindusthan, EID Parry and HOEC fell 3-6 percent.

Indian shares erased early gains and turned into consolidation mode after rising more than 100 points on the Sensex. The market has been consolidating for the second consecutive session today (especially after surging 400 points on Friday) as it has already priced in moves taken by the government to revive sluggish economic growth.

It started concentrating on weak economic fundamentals and weak global data as measures announced by the government are long term in nature and will not immediately benefitted to the economy, say experts.

The 30-share BSE Sensex fell 16 points to 18,657.12, weighed down by banks, metals, auto, telecom and oil & gas stocks. Meanwhile, the 50-share NSE Nifty declined 12 points to 5,657.95.

Country's largest lenders State Bank of India, ICICI Bank and HDFC Bank were down 0.5-1.3 percent. Index heavyweight Reliance Industries slipped 0.2 percent while its rival ONGC lost 0.8 percent.

Among metals stocks, Jindal Steel, Tata Steel, Sterlite Industries and Hindalco Industries went down 1-3 percent. Telecom operator Bharti Airtel fell over 1% and commercial vehicle maker Tata Motors slipped 1.4 percent.

Defensives got back into momentum. Software services exporter TCS and housing finance company HDFC were up 1.5 percent.

FMCG majors ITC and Hindustan Unilever gained 0.4-0.7 percent. Drug producers Cipla and Sun Pharma climbed 1.9 percent and 0.9 percent, respectively.

Engineering conglomerate Larsen & Toubro moved up 0.6 percent and state-run power equipment manufacturer BHEL rose 0.9 percent.

The market breadth, which was strongly in favour of advances with ratio of 3:1 in early trade, turned neutral.

The BSE Sensex started off Tuesday trade with marginal gains and immediately added more than 100 points gains, supported by stocks that have exposure to state electricity boards.

Yesterday cabinet has approved state electricity board (SEB) restructuring package yesterday. The government says states will convert all SEB loans into equity and will have to defer recovery till lenders paid. States will settle power outstandings by November 2012, they says.

Tata Power, BHEL, PNB, Axis Bank, SBI, Reliance Infrastructure and NTPC were up 1.5-2.5%.

Adani Power, Indiabulls Power, JSW Energy, SBI, Bank of India, Reliance Power, PTC India, Lanco Infratech and GMR Infra rallied 2-5%.

The 30-share BSE benchmark moved up 101.52 points to 18,774.86 and the 50-share NSE Nifty went up 28 points to 5,697.45.

Cairn India trimmed losses to 2% from 5% initially; Cairn UK was expected to sell 15.3 crore equity shares (8% equity) in a price range of Rs 318-328/share via block deal today.

Larsen & Toubro rose 1%, hitting a new 52-week high of Rs 1595 a share.

The CNX Midcap Index rose 53 points to 7,718 as about three shares advanced for every share declining on the National Stock Exchange.

Sugar stocks tumbled quite sharply after The Times of India reported that the government has deferred call on hiking sugar prices. Shree Renuka Sugars, Triveni Engineering, Bajaj Hindushan and Balrampur Chini were down 5% each.

Mangalore Chemical and Fertiliser rallied 7% as The Times of India reported that two bidders are eyeing Mallya's 30% stake in the company.

Kingfisher Airlines gained 2%; lenders are likely to meet Kingfisher management soon.

United Spirits was up over 2% on hopes of stake sale deal with Diageo.