Sensex sheds early gains to close marginally higher

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Helped by strong gains across major global markets, frontline Indian indexes firmed up in morning trades. The Sensex moved close to 14400 while the Nifty went past 4120. Today being the last day of settlement for the April series of derivatives contracts, the afternoon saw some unwinding of positions which pulled the indexes down. They slipped into the negative towards close, but managed to end with modest gains.

Sensex closed with gains of 11 points at 14229 and the Nifty gained 11 points to end at 4178. Nifty May futures closed at a discount of 23 points to the spot index.

Oil marketing stocks gained ground in the afternoon, led by HPCL which closed 4.52 per cent. Gail India lost 3.36 per cent while BPCL gave up 3.32 per cent.

Engineering and capital goods stocks also had a good session.

Siemens rallied 3.06 per cent and Suzlon closed 2.94 per cent higher while L&T ended 1.58 per cent higher.

Bajaj Auto continued its good run and closed 2.47 per cent higher

Grasim ended with gains of 2.91 per cent after better than expected results

MTNL recovered 2.13 per cent after yesterday's decline

HLL was the other major gainer, closing 1.94 per cent higher.

HCL Tech was the worst performer among Nifty stocks, closing 2.44 per cent lower. Satyam Computer gave up 1.07 per cent

ONGC declined 1.44 per cent and exerted pressure on the indexes

Hero Honda corrected 1.89 per cent after yesterday's rally

HDFC lost 1.02 per cent while IDFC ended 4.81 per cent lower after results announcement. IDBI gave up 1.7 per cent

Tata Steel also corrected 1.86 per cent after the recent rally

Reliance Energy, Dabur, Glaxo and Gujarat Ambuja were the other major losers

Global markets / crude oil
US markets rallied yesterday on corporate results which were better than expectations. Economic data released yesterday, that of durable goods orders and new home sales, were positive.

Higher oil prices helped energy stocks, but did not dampen the positive sentiment.

The Dow crossed 13000 for the first time ever and closed with gains of 1.05 per cent while the S&P 500 index added over per cent. NASDAQ ended with gains of over 0.9 per cent

Asian markets surged ahead, following the overnight rally in US indexes. Indonesia was the best performer, with gains of 1.5 per cent, followed by Singapore which gained 1.3 per cent. Japan closed more than 1.1 per cent higher while Shanghai ended nearly 1.05 per cent higher.

Hong Kong ended 0.65 per cent higher and South Korea added 0.5 per cent. Thailand ended with marginal gains

European markets opened higher and are holding on to their gains. Major European indexes are trading with gains of between 0.35 per cent and 0.9 per cent each in afternoon trading.

Crude oil prices bounced back after the previous day's fall on sustained decline in weekly US oil inventories. Near month NYMEX futures ended more than 2 per cent higher $65.84 per barrel yesterday and has corrected more than 40 cents per barrel in European trading today.

Large-cap news flow

Mid-Cap Action
Mid-caps and small caps opened with modest gains but slipped in the afternoon. The CNX Mid-cap index lost 27 points, or 0.5 per cent, to end at 5240. The BSE mid-cap index lost 0.3 per cent and the BSE small cap index closed 0.82 per cent lower.

Despite the afternoon weakness, many mid-cap stocks ended in upper circuits today as well. Lumax Auto Tech and STI India ended at 10 per cent upper circuits for the second session while Kakatiya Cements, Lokesh Machines, Binani Industries and Godfrey Philips also closed at 10 per cent upper circuits

Vijaya Bank, Graphite India, Sunil Hitech and Gujarat Alkali were the other major gainers among mid-caps

REI Agro ended at 20 per cent down circuit while GHCL and Genus Overseas closed at 10 per cent down circuits

Cyber Media, BIL, Sirpur Paper, Jai Balaji Sponge, Tulip IT, Ramco Systems and Exide Industries were the major losers among mid-cap and small-cap stocks

Mid-cap news flow

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

*Disclaimer: Thomas White International may have recommended some of the stocks specifically mentioned in this report to our clients. Lord Asset Management Trust, our mutual fund management associate, and our asset management division may also have positions in some of the stocks specifically mentioned in this report. As a policy, employees of Thomas White International are not allowed to invest or trade in common stocks and common stock derivatives. This 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.