How Market Fared

F&O expiry holds the key

Friday really turned out to be a good day for the bulls. The markets registered third consecutive week of losses with NSE Nifty losing 0.45% and benchmark Sensex down 1.05%. After registering positive opening the key indices immediately lost ground on back of high volatility. The key indices grew stronger throughout the day as buying in the Auto, Metal, Capital Good, Oil & Gas, Power and Telecom stocks lifted the markets to close with healthy gains. Finally, the BSE benchmark Sensex added 86 points to close at 13471. NSE Nifty was up 37 points to close at 3871.

M&M surged 2.7% to Rs870 after the company announced that they would buy Germany's Schoneweiss. The scrip touched an intra-day high of Rs879 and a low of Rs851 and recorded volumes of over 11,00,000 shares on NSE.

JSW Steel spurred over 4% to Rs378 after the company planned to spend Rs20bn to produce high grade steel. The scrip touched an intra-day high of Rs381 and a low of Rs365 and recorded volumes of over 3,00,000 shares on NSE.

Rajesh Exports was locked at 5% upper circuit to Rs338.95 after the company received order worth Rs2.76bn. The scrip touched an intra-day high of Rs338.95 and a low of Rs325 and recorded volumes of over 3,00,000 shares on NSE.

Uttam Galva was down 0.5% to Rs31 after the company cut prices by Rs3000 per ton. The scrip touched an intra-day high of Rs32 and a low of Rs31 and recorded volumes of over 1,00,000 shares on NSE.

Metal stocks were in the limelight. JSW Steel surged nearly by 5% to Rs380, Tisco advanced 2.2% to Rs479, Hindalco gained 1.2% to Rs173 and SAIL added 0.6% to Rs82.

Capital Good stocks followed suit with heavy weights leading from front. L&T rose 2.2% to Rs1433, BHEL advanced 1% to Rs2301, Punj Lloyd was up by 2% to Rs988 and Siemens added 1.4% to Rs1122.

Pharma stocks are trading firm on back of buying. Aurobindo Pharma has surged by over 3.5% toRs689, Sun Pharma is up by 0.6% to Rs948, Dr Reddy’s Lab has gained by 0.6% to Rs803 and Cipla has edged higher by 0.2% to Rs247.

Oil Exploration stocks were in demand today. ONGC advanced by 1.1% to Rs867 and Reliance Industries rose 0.9% to Rs1272. However refinery stocks were also up with BPC and IOC the major gainers.

Telecom once again rang with smart gains. MTNL was the star performer rose 4.9% to Rs139, Reliance Communication advanced 1.5% to Rs468, Bharti Airtel edged higher by 0.5% to Rs614 and VSNL was up 1.8% to Rs406.

Next week will be the most crucial as December F&O series comes to an end. The market will remain highly volatile as the near term direction remains unclear. Though, India continues to be the most expensive market among the emerging economies space, it also remains one of the favorites for the overseas investors. Despite the blip during the start of the week, or any talks of overheating valuations, Indian markets remains the best bet for the long term. FIIs activity did slowed down during the week on account of Christmas holiday’s. However, it is likely to pick up soon after the New Year and the results expectations start rolling into the street.