Markets end higher led by banks, autos, FMCG

ITC, HDFC Bank, HDFC , Reliance, L&T , Tata Motors top Sensex gainers

Markets ended Tuesday's trading session on a strong note led by buying witnessed by the banking, FMCG and auto stocks. The Sensex surged 237 points to provisionally close at 17,629 and the 50-share Nifty advanced 70 points to shut shop at 5,345 levels.
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(Updated at 14:40 hours)


Markets have extended gains in the late noon deals led by buying witnessed by the banking and auto stocks. The Sensex has jumped 200 points to 17,594 levels and the 50-share Nifty has advanced 63 points to 5,338 levels.

Meanwhile, the European markets are trading higher after the finance chiefs ratified a deal to rescue Spanish lenders.

The euro zone ministers agreed to grant Spain an extra year until 2014 to reach its deficit reduction targets and set the parameters of an aid package for Madrid's ailing banks. But they made no apparent progress on how the bloc's new rescue fund, the ESM, will be used to intervene in bond markets. Following this news, CAC40, DAX and FTSE advanced 0.4-1% each.

The Asian markets ended lower on Tuesday after Chinese import growth slowed sharply in June, underscoring weakness in domestic demand in the world's second-largest economy and adding to concerns about deteriorating global economic conditions. The Shanghai Composite closed lower by 0.3% at 2,164, Nikkei slipped 0.4% and the Hang Seng closed lower by 0.2%.

Back home, auto stocks are in limelight in trades today after the SIAM reported that car sales in the country grew 8.28% to 1,55,763 units in June 2012 amid tough market conditions. According to figures released by the Society of Indian Automobile Manufacturers (SIAM) today domestic car sales stood at 1,43,851 units in the same month last year.

Tata Motors is the top gainer on the Sensex. The stock jumped 3% to Rs 248 after Ratan Tata, company’s chairman said that the Tata Motors is turning to China to buy auto parts unavailable in India as it seeks to offer vehicles with automatic transmission at home. Maruti Suzuki, Hero MotoCorp, Bajaj Auto and Mahindra & Mahindra were also among the gainers from the auto space.

Among the other heavyweight stocks, ITC, HDFC Bank, Larsen & Toubro, Bharti Airtel, Hindalco, Dr Reddy's Labs, ICICI Bank, Sterlite Industries, ONGC, Coal India, State Bank of India and Reliance Industries are also among the gainers, up 1-3% each.

On the other hand, NTPC and Wipro are among the notable losers from the Sensex pack.

Buying is visible across the board led by auto , banking and capital goods stocks. The BSE auto index is the top sectoral gainer, up 174 points or nearly 2% at 9,555 levels. Capital goods, bankex, FMCG, metal, consumer durables, realty, oil & gas and PSU indices have also edged up by 1-1.5% each.

The broader markets are in-line with the benchmark indices. The BSE mid-cap index is up 65 points at 6,303 and the mid-cap index has advanced 50 points to 6,800 levels.

Among the individual stocks, Global Offshore Services has moved higher by 8% at Rs 80.95 after the company said its wholly owned subsidiary Global Offshore Services B. V. has raised $13.87 million (approx Rs 78 crore) via equity sale.

Globus Spirits has soared 13% to Rs 133, extending its past two days’ rally on the back of huge volumes. As many as a combined 2.25 million shares have already changed hands on the counter in morning trades, as against an average of around 400,000 shares that were traded daily in past two weeks.

Venus Remedies has rallied 6% at Rs 219 after the company said it has launched a nanotechnology based ‘ready-to-use’ single vial Docetaxel in the domestic market under the brand name “TAXEDOL".

The overall breadth is positive as 1,640 stocks are advancing while 1,148 are declining.