Sensex ends above 19,000 on F&O expiry

Auto, Banking, Capital Goods and Oil & Gas shares led the strong rally

Key share indices ended higher by nearly 2% on November futures and options series as traders rolled over positions to the December series. Firm global cues and consistent buying among Auto, Banking, Capital Goods and Oil & Gas shares led the strong rally. 

The rise also came after the political logjam over allowing foreign direct investment (FDI) in the retail sector seems to have given way to a discussion in Parliament, which allows voting post the debate.

Meanwhile, Goldman Sachs raised India to 'overweight' from 'market-weight', citing growth recovery and inflation moderation ahead. The investment bank pegged December 2013 Nifty target at 6,600 points.

The 30-share Sensex ended at 19,171 up 329 points or 1.75% and the 50-share Nifty ended at 5,825 up by 98 points or 1.70%. The Sensex and the Nifty touched an intra-day high of 19,205 levels and 5,834 mark, respectively. Sensex traded above 19,000 levels for the first time in near two months.

On the global front, Japan's Nikkei share average rebounded from the previous session's one-week closing low as hints from US policymakers of progress toward reaching a fiscal deal boosted investors' risk appetites.

The Nikkei advanced 1.0% on Thursday to 9,400.88 points, climbing above its five-day moving average at 9,377.65.

Firm opening of the European markets during late noon trades further boosted sentiment amongst local investors. CAC, DAX and FTSE gained by 1% each

Back home, BSE Realty index spurted by nearly 4% followed by counters like Auto, Banks, Metal, Capital Goods, Oil & Gas, Consumer Durable, FMCG, PSU and Healthcare, all gaining between 1-3%. However, BSE IT and TECk indices ended marginally lower.

Banking and financial shares which are a proxy to the economy witnessed consistent buying demand on expectations that the RBI will cut interest rates in the coming months to support the economy. ICICI Bank was the top Sensex gainer, up almost 5%. HDFC, SBI and HDFC Bank surged between 1-3%.

From the Auto space, Tata Motors and Bajaj Auto surged by over 4% each. According to reports, Tata Motors will halt production at its block here for three days from today, following poor demand.

Capital Goods major L&T surged by nearly 3%. L&T Finance Holdings sold its entire 4.67 per cent stake in private sector lender Federal Bank for about Rs 363 crore.

From the metals space, Sterlite, Hindalco, Tata Steel and Coal India gained between 1-3%.

Index heavyweight Reliance Inds have surged by nearly 2%.

Realty shares extended gains for second straight trading sessions.

Other notable gainers included Cipla, Tata Power, ONGC, GAIL, Sun Pharma, DRL and ITC.

On the losing side, Infosys, Hero Moto, BHEL and Maruti Suzuki slipped by 1% each.

The broader indices underperformed the benchmarks but ended firm – BSE Midcap and Smallcap indices were up 0.5-1%.

The market breadth in BSE ended healthy with 1,680 advancing and 1,269 shares declining.

Smart Movers

KNR Constructions rallied 18% to Rs 122 after the company said that it has bagged an EPC (engineering, procurement and construction) order worth Rs 790.50 crore from KNR Walayar Tollways Private Limited.

Suzlon Energy surged 9% to Rs 19, extending its Tuesday’s 11% gain, on reports that lenders have agreed to restructure about Rs 11,000 crore of the company’s debt.

Fortis Healthcare surged 8% to Rs 109 after the company controlled by Malvinder and Shivinder Mohan Singh approved the setting up of a committee that would explore various means to raise funds.

ABG Infralogistics galloped 20% to Rs 120 on reports that the company is close to clinch a tender for container handling at the Kolkata Port Trust (KoPT).

Karnataka Bank soared 5% to Rs 164 after the private sector bank said that it is targeting to disburse Rs 1,000 crore in agricultural sector during 2012-13.

Astrazencea Pharma India slipped 3% on reports that the Intellectual Property Appellate Board (IPAB) dismissed the company's appeal against refusal of patent for lung cancer drug Gefitinib.

Geodesic rallied 8% to Rs 57 after the board of directors approved the buyback of the company’s equity shares at a maximum price of Rs 75 per share.

Apollo Hospitals Enterprise tanked 8% to Rs 805 on reports that CLSA plans to offload its stake in the company for $135 million (approx. Rs 750 crore).

Natco Pharma surged 5% to Rs 438 on reports that the Intellectual Property Appellate Board (IPAB) dismissed AstraZeneca appeal on lung cancer drug Gefitinib.

PVR Limited has rallied 7% after its board approved the purchase of entire promoter’s shares in Cinemax India at price of Rs 203.65 per share.