Nifty inches towards 5800; all sectoral indices in green

Bulls have consistently been backing the Indian equity benchmarks since Tuesday of previous week, supported by leading sectors. TheNifty was inching up towards the 5800 level - the Nifty March and April futures were already started trading above that level at 10:45 hours.

Dilip Bhat, Joint MD, Prabhudas Lilladher feels that the market is poised for a breakout. According to him, the Nifty may even touch 6000 to 6200 by June-July. Bhat reasons that the market has already factored in lot of negatives so from hereon any small positive will act as a good trigger for markets to really go up and react very positively.

However, Bhat adds, “I think possibly maybe 5,350-5,400 possibly is the base for the Nifty at the moment.”

The 30-share BSE Sensex rallied 190 points to 19,311 and the 50-share NSE Nifty jumped 53 points to 5,789. The broader indices too were rallying in line with benchmarks - the BSE Midcap and Smallcap indices were up 1% each.

Only Bharti Airtel was in the red while rest of 29 stocks out of 30 onSensex gained. Overall market breadth was strong - about 1821 shares advanced as against 516 shares declined on the Bombay Stock Exchange.

All sectoral indices were in the green. The most beaten down BSE Realty Index gained nearly 2%. Healthcare, Auto, Capital Goods, Metal, IT and Oil & Gas indices went up 1% each. Bank, Power and FMCG indices were up 0.5-0.9%.

TCS, ONGC, HDFC, Reliance Industries, Wipro, L&T, HDFC Bank, ICICI Bank, SBI and Infosys were leading the markets.

Ambuja Cements, M&M, Dr Reddys Labs, DLF, Jaiprakash Associates and Cipla were the top gainers.

In midcap space, Kirloskar Oil, IVRCL Assets, Motilal Oswal and Prakash Industries rallied 7-11% while Shree Global, KGN Industries, Sunteck Realty, Rei Agro and Parsvnath fell 2.5-5%.

In smallcap space, Ushdev Intl, R M Mohite, Fame India, Parrys Sugar and Infinite Comp lost 3-5%.

Traders and investors looked bullish on paper stocks after AP Paper Mills deal with International Paper.

US based International Paper is going to acquire 53.5% stake in AP Paper Mills for USD 257 million + 21.5% stake in open offer for USD 104 million. AP Paper Mills was locked at 20% upper circuit.

West Coast Paper, NR Agarwal, Pudumjee Pulp too jumped 20% each. JK Paper, Seshasayee Paper, Emami Paper, Ballarpur Industries and TNPL were up 13-16%. Orient Paper gained 7%.

New Listing - PTC India Financial Services was trading at Rs 24.6, down 12% from issue price of Rs 28 a share.

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