Markets gain second day led by financials

Markets extended gains for the second straight day on Tuesday to end over 2% higher led by metal and capital goods shares.

The 30-share Sensex ended at 15,939, up 421 points or 2.7% and the 50-share Nifty ended at 4,765, up 129 points or 2.8%. The Sensex and the Nifty reached an intra-day high of 15,970 and 4,773, respectively.

On the global front, Asian markets ended firm today. Hang Seng, Nikkei, Taiwan Weighted, and Straits Times gained between 1-3%. Firm opening of the European markets during late noon trades further boosted sentiment amongst local investors. The DAX and FTSE-100 were up by nearly 1% each. However, CAC was 0.5% down.

Back home, all the sectoral indices ended in positive terrain. BSE metal index jumped by nearly 5% at 9,352 levels. BSE bankex and capital goods indices spurted by almost 4% each.

From the metal space, Tata Steel and Jindal Steel surged by 6%. Coal India gained 5% on the news that the company entered into a new pricing policy, effective today. Sterlite and Hindalco gained between 3-4%.

Among capital goods pack, L&T gained 5% after the engineering and construction major said it has bagged orders worth Rs 2,056 crore. BHEL too increased by 5%.

DLF was the top Sensex gainer from the realty space, up by 7% on reports that China-based conglomerate, HNA, has shown interest in Aman Resorts, the company’s biggest non-core asset.

In the financial space, ICICI Bank, SBI, HDFC Bank and HDFC surged between 2-5%.

Index heavyweight Reliance Industries gained 2%. A unit of Reliance Industries (RIL) plans to invest more than Rs 1,500 crore in media group TV18's two main companies through proposed rights issues, a business daily reported. ONGC was 1% up.

From the technology pack, Wipro spurted by nearly 4.59%. Infosys and TCS jumped by almost 2% each. Meanwhile, the rupee firmed early on Tuesday in anticipation of capital inflows as stocks across Asia rose.

Tata Motors accelerated by 5.5% after reporting its highest ever total vehicle sales in past nine months, during the month of December 2011. Bajaj Auto and Maruti Suzuki increased by over 1.4% each. However, Hero MotoCorp and M&M slipped between 0.1-1%.

Consumer durable segment too witnessed strong buying demand. VIP Industries was the top gainer among the consumer durable stocks, up 9% to Rs 85. Bajaj Electronics, Blue Star, Rajesh Exports, Titan Inds, TTK Prestige and Videocon Inds gained between 1-4%.

Telecom major Bharti Airtel zoomed by almost 4% while Tata Power and NTPC gained between 1-5%.

The broader markets too performed smartly in line with benchmark indices, both zooming by nearly 2% each. 

Shares of electronic media companies – NDTV, TV Today Network, Network18 Media and Investments and TV18 Broadcast jumped more than 14% each after Reliance Industries (RIL), through its subsidiary - Infotel Broad Band Services - entered into a Memorandum of Understanding with TV18 and Network 18 for preferential access to all their content for distribution through the 4G Broadband Network being set up by it.

Oil marketing companies like Indian Oil, BPCL, Oil India and HPCL remained under pressure on the bourses, all plunging between 0.4-3% on report that the government has not given a clearance to these companies for hiking petrol prices.

Ashok Leyland gained 3% as the company reported a rise of 28% in total sales for December at 9088 units as compared to previous month.

Hindustan Construction Company (HCC) rallied 8% to Rs 17.90 after the company said it has received contract worth of Rs 289 crore from Gujarat Water Infrastructure Ltd.

Public sector undertakings (PSU) such as MMTC, State Trading Corporation (STC), Hindustan Copper and Dredging Corporation and MMTC rallied more than 18% each on the back of huge volumes.

The market breadth in BSE ended healthy with 2,019 advancing and 740 shares declining.