Markets surge on last trading day of FY12

Markets ended the last trading day of the financial year 2011-12 with strong gains led by index heavyweights and bank shares. The Sensex touched a high of 17,440 and finally ended up 346 points at 17,404. Nifty gained 116 points at 5,296.

Markets would now be looking at the Q4 corporate earnings season, which is set to begin in April, for directions.

Asian markets ended mixed with the Nikkei and Hang Seng dropping 0.3% each. Meanwhile, Shanghai Composite added 0.5% at 2,263.

Meanwhile, finance minister Pranab Mukherjee said today that holders of participatory notes, or P-notes, will have no tax liability and a clarification on these notes will be issued in due course.

P-notes are issued by foreign portfolio investors registered with the Indian market regulator, or by their sub-accounts, to investors overseas and they offer the buyer anonymity.

BSE oil & gas index was the top sectoral gainer - up 3% at 8,088. The metal index gained 2.5% to 1,777 ahead of China's manufacturing Purchasing Mangers' Index data. Realty index held on to gains and was up 2.6%, followed by bankex and auto.

Heavyweights - Reliance, Infosys and ICICI Bank advanced in trades. Together the stocks accounted for a 135 points rally on the Sensex. Metal shares - Hindalco and Tata Steel added 4% each at Rs 129 and Rs 472, respectively.

Power generation stocks rose in afternoon trades. Tata Power added 2.7% at Rs 101. Reliance Power was up 1.4%.

Reliance ADAG group shares were also in the green. RCom added 1.5% at Rs 84, Reliance Infra moved up 3.5%, Reliance Media Works was up 4% in trades.

Larsen & Toubro added 2% at Rs 1,307 on news that the company has won new orders valued over Rs 1,875 crore across various business segments in March 2012.

PSU OMCs gained as crude oil futures dropped to a six-week low. HPCL surged 7% to Rs 303. BPCL and IOC were up 2-3% each.

ONGC added 2.5% at Rs 267 reports the state-run oil exploration major will sign an initial agreement with ConocoPhillips on the exploration and development of shale-gas reserves and deep-water oil and gas blocks.

Among individual stocks, Coal India moved up 3% at Rs 343. Reports suggest that the company has approved the new draft fuel supply pact, but with riders.

The government will look into the possibility of disinvestment of Andrew Yule and Company’s stake in Tide Water Oil. The stock gained 2.6% at Rs 7,444.

Essar Oil has completed the expansion of its Vadinar oil refinery in Gujarat and expects revenue to grow 35 per cent in 2012-13. The stock was up 1.7% at Rs 53.55.

Ashok Leyland has initiated talks with foreign players for technological partnerships to foray into the aerospace business. The stock advanced 4.6% at Rs 30.33.

The promoters and promoter group of Chemplast Sanmar are planning to buyback shares worth 90.60 crore rupees. Shares of Chemplast slumped 5% to Rs 6.19 after touching a high of Rs 6.68 in morning trades.

BSE market breadth was positive. Out of 2,995 shares traded, 1,966 shares have advanced while 914 shares have declined.