Markets extended the morning gainsfollowing firm Asian peers and rally in metal shares. The S&P CNX Nifty gained 39 points, at 5,389 and the benchmark Sensex advanced 139 points, at 17,988.
Markets bounced ahead of expiry because the markets were oversold on the technical charts. Ravi Nathani Technical Analysts said that indicators were pointing towards markets being oversold on charts; a bounce is expected in near term with first resistance around 5450 & than 5520.
-------------------------Updated 09:30 hrs
Markets opened in the green led by gains in metal shares after Tata Steel reported 72% surge in fourth quarter net profit. The S&P CNX Nifty gained 20 points, at 5,365 and the benchmark Sensex advanced 50 points, at 17,901.
Analysts expect markets to remain weak going into next series after the Nifty breached 5400 mark. Derivatives Analyst Devangshu Dutta said that market seems to be headed for new 2011 low within next 5-10 sessions. “The breach of 5,400 makes a short term target of 5.250-5,275 likely and intermediate and long-term bearish trends makes it very likely that February 2011 low of 5,177 will be broken.”
Asian stocks rose on Thursday, led by commodity and consumer related sectors and the euro's rally above $1.41 bringing risk averse investors back into the markets in search of bargains. Hong Kong's Hang Seng was up 0.3% buoyed by resource shares. The Nikkei Stock Average surged 1.3% supported by gains in energy shares. China's Shanghai Composite index was also up 0.3%.
Foreign Institutional Investors continued to remain net sellers in the Indian equities; yesterday they sold shares worth Rs 371 crore. They have been net sellers of shares worth Rs 5.355 crore ($1 billion).
Among individual stocks Tata Steel rallied 2.5% to Rs 574 after the fourth quarter net profit surged 72% due to robust volume and spike in prices. The management said that company plans to spend $2 billion capital expenditure in the Jamshedpur plant. Cairn India was also up 2.6% to Rs 346 after the net profit zoomed 10x to Rs 2.58 crore on souring crude prices and consistent output from Rajasthan oil fields. Coal India was also up 2.7% at Rs 385 after profit jumped 13% to Rs 109 crore against Rs 96.2 crore.
BSE metal index was the top gainer, up 1.2%. Besides Tata Steel, Sterlite Industries gained 1.8%, Hindalco was up 1.6% and JSW Steel rallied 1.5%.
BSE Consumer Durables was leading the losses, down 0.3%. Bajaj Electricals was down 1.3% and Titan Industries slipped 1.1%.
Broader markets were trading marginally higher, up 0.3% and 0.5%. Market breadth was negative, 898 stocks advanced for 531 stocks declined.
