Tuesday, March 22, 2011

Markets end higher; auto shares in top gear

Markets closed in the green after three consecutive days of losses buoyed by gains in auto and realty shares. However, investors continue to remain watchful of the developments in west Asia.

The Nifty opened at 5,391 and scaled to a high of 5,428 followed by positive cues from the Asian peers as radiation concerns from Japan eased. The S&P CNX Nifty held on to the gains and closed up 49 points, at 5414 and the benchmark Sensex advanced 149 points, at 17,988.
In west Asia, coalition forces renewed air strikes on Libya, intensifying the skirmish and stoking fears of oil supply. Brent Crude fell 0.5% at 114.63, below $115 mark. Back in India, the government introduced a nationwide Goods and Services Tax (GST) bill into parliament today but the opposition immediately threatened adjournment on back of cash-for-votes scandal.                                                                  n India markets rallied on account of value buying by (FIIs) Foreign Institutional Investors in selective stocks. Gopal Agrawal, Head Equity and Deputy CIO, Mirae Asset Global Investments said, "after witnessing a correction of almost 15% from recent highs, values started emerging in many individual stocks on the back of significant earnings growth visibility and long term prospects." FIIs have been net buyers of $320 million in Indian equities in March so far.
Even technical charts indicate bounce back in the near term. Kunal Bothra, Technical Analyst, LKP Securities said "the Nifty is due for sharp bounce back; the markets have absorbed all the bad news in the last few weeks, which can be a positive trigger for the market."
Agarwal recommends investors to focus on quality stocks with reasonable valuations which are thrown in large numbers due to market volatility.
All the sectoral indices ended in the green. BSE Realty and Auto shares were the top sectoral gainers, the indices were up 2.2% and 1.5% each.
From the realty space, Anant Raj Industries was the top gainer, up 7.5%, followed by Phoenix Mills, up 4.8%, Mahindra Lifespace gained 3.7% and DLF advanced 3.2%.
Auto shares were in the top gear, Maruti Suzuki climbed 3.5%, Ashok Leyland advanced  1.8% and Mahindra & Mahindra was up 1.7%.
Top gainers on the Sensex were Bharti Airtel, up 2.7%, JP Associates advanced 2.1% and HDFC zoomed 1.7%.
Reliance Industries gained 1.1% after declining 5.4% in the past three days. Only four components on the Sensex ended in the red, Jindal Steel and TCS declined 0.3% each, ICICI Bank was off 0.2%, HDFC Bank and Bajaj Auto ended flat.
Broader markets also ended in the green, the midcap and small cap indices were up 0.8% and 0.5% each. Market breadth was positive, 1555 stocks advanced for 1294 stocks which declined.

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