Sensex surges; banks, metals, autos, IT gain

At 10:43 hours IST, the benchmark Sensex erased more than 100 points from its day’s high. Even the Nifty slipped below 6,200 level due to profit booking in largecaps.

However, the uptrend remained intact due to support from banking, metal, technology, auto and capital goods companies’ shares along with heavyweight Reliance Industries.

G Devanathan managing partner and chief executive officer of Insync Capital said, “The uptrend remains quite strong with the secular decline of the dollar index is aiding sentiment. And, this uptrend will be intact even with a 10% correction. However the markets may make a top around 3% of the previous peak.”

The Sensex was trading at 20560, up 153 points and the Nifty was at 6191, up 46 points. The Nifty October futures were trading at 25 points premium. The broader indices were outperforming benchmarks; the BSE Midcap and Smallcap indices gained 1.2-1.4%.

In metal space, Sesa Goa, Sterlite Industries, Hindalco, Tata Steel, Jindal Steel and Hindalco Industries gained 1-2.4%. ICICI Bank, PNB and HDFC Bank from financial segment went up 0.8% each; SBI was up 0.3% and Kotak Mahindra Bank was up 1%.

TCS and Wipro from technology pack gained 0.7-1.2%; Infosys and HCL Tech were up 0.3% each. Tata Motors, Maruti and Hero Honda moved up 1% each; Bajaj Auto and M&M gained 0.5% each.

Kirloskar Brothers (1 crore shares of company changed hands on BSE at Rs 262/sh), Reliance Media, M&M Financial, Reliance Industries, Tata Steel and Shipping Corp (cabinet approved divestment in the company) were the most active shares on exchanges.

New listing – Career Point was trading at Rs 553.80, up 78.65% over its issue price of Rs 310 a share. Eros International was trading at Rs 189.80, up 8.46% over its issue price of Rs 175.

In midcap space, Shipping Corp, Cox & Kings, STC India, HMT and Dredging Corp rallied 4-8% while Sterling Bio, Simplex Infra, Patni Computer, Allcargo Global and Torrent Pharma fell 0.7-1.5%.

In smallcap space, ITI, Orient Paper, Ashapura Mine, Jolly Boards and NOCIL went up 6-9% while Hinduja Foundries, Surana Ind, Intra Infotech, Sarasind and Symphony lost 1.6-4%.

About 2253 shares advanced while 985 shares declined on BSE. Nearly 176 shares were unchanged.