BSE Sensex gained for a seventh straight day on Thursday in a volatile session that saw metals and mining companies such as Hindalco Industries  and Jindal Steel and Power surging after the successful completion of the country’s first auction to sell mines.

The auction follows a court cancellation of all previous licenses and the initial bidding suggests companies are keen to secure supplies as the economy improves.

The benchmark BSE index gained 0.48 percent to 29,462.27 points, while the broader NSE index ended 0.3 percent higher at 8,895.30 points.

Shrikant Chouhan, Head- Technical Research, Kotak Securities:
Today’s market activity was the best example of volatility ahead of the budget. At one point, it was down by 100 points from the highest point of the day (8902) but later it recovered sharply on the news that Greek has submitted Loan extension request to it’s euro area creditors. However, it does not mean that they have accepted to it.  Our domestic news flow has also turned positive in terms of strong response to bidding of Coal blocks. Technically, the market has formed “Hanging man formation” at the top of the recent rally but it may result into continuation formation if indices open up with a gap as compared to previous close (8895). Nifty has its next major hurdle at 8925/29560. Above these levels we can expect markets to trade in the new zone by crossing immediate highest level, which was at 9000/29900. Fundamentally, investors are still investing on those stocks where the growth is clearly visible ahead of the Budget. Selective buying is advisable in metal stocks with a medium term view, we like Hindalco and JSW steel.

Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
As we have moved sharp in expectation of budget we have seen intraday volatility today. Though the overall momentum continues to be uptrend. This volatility is coming in-line with the question ‘as we have already moved near all-time high, will the Government move as per expectation?’. We maintain our view that Government is expected to increase Infrastructure spending, better platform and incentives to manufacturing which will develop positive momentum towards Infra, PSUB and Manufacturing sectors. Whether all this expectation will be answered in the budget or as a continuous reforms, only time will tell.

Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
After a positive opening, the markets slipped into negative territory due to overbought situation and higher level profit booking.  But it managed to rebound in the closing session and Nifty crossed its major resistance level of 8900 level, giving further hopes continued uptrend.
Nifty today closed at 8895, up around 29 points.  The market breadth turned to flat as there were seen 1374 stocks advancing against 1511 stocks declining. The Nifty volatility index, India VIX stood at 20.3975 down around 2.46%.
The Mid cap and small sectors ended up around 0.04% and 0.10% respectively.
The gainers in the sectoral front were Metal and Capital goods, which closed up around 3.82% and 1.36% respectively whereas the losers were FMCG and Banking which ended down around 0.90% and 0.60% respectively.
In the stocks’ front, buying were seen in Jindal Steel and SSLT, closed up around 28.61% and 7.12% whereas selling were seen in Grasim and Bank Baroda which closed down around 2.52% and 2.29% respectively.
The jewellery stocks were up on the news that the RBI has removed restriction on imports and the DVR shares (Tata motors, Future retail, Jain Irrigation and Gujarat NRE Coke) trading in exchanges rose on the BSE’s new norms to include the same in indices.
The FIIs were net buyers in the capital market segment, bought shares worth Rs 2187.96 crore on Wednesday, 18 February 2015. On the other hand the DIIs were also net buyers on 18 February 2014, bought shares worth Rs 327.87 crore as per the provisional data from the stock exchanges.
The European markets fell led by the decline in the energy stocks. The US index futures were also trading lower.

($1 = 62.0732 Indian rupees)

Sensex up 142 pts on 7th day of rise; metal shares lead rally
(PTI) Surging for the seventh straight session, the benchmark Sensex today gained over 142 points to close at 29,462.27 today boosted by sharp rise in metal shares after some firms won mines in ongoing coal block auction.

Stocks of Jindal Steel Power zoomed over 25 per cent. Hindalco, Tata Power, Tata Steel and Sesa Sterlite rose in the range of 2-7 per cent.
Rate-sensitive capital goods and realty shares also saw buying on hopes of rate cuts as inflation slowed. Participants continue to bet on a growth-oriented budget, brokers said.

In volatile movements, the 30-share BSE Sensex opened on a strong footing but succumbed to profit-booking and stayed in the negative zone for a major part of the session. It hit the day’s low of 29,108.15.

However, a flurry of buying in the last 90 minutes boosted share prices and helped the Sensex rebound and hit a high of 29,522.86 before closing at 29,462.27 — a net gain of 142.01 points, or 0.48 per cent.

The bluechip gauge has now garnered 1,234.85 points in the seven straight sessions and is at three-week high levels.

“Today’s market activity was the best example of volatility ahead of the budget…our domestic news flow has also turned positive in terms of strong response to bidding of coal blocks,” said Kotak Securities, head – Technical Research, Shrikant Chouhan.

The wide-based NSE Nifty index rose by 26.20 points, or 0.30 per cent, to close at 8,895.30. Intra-day, it moved between 8,794.45 and 8,913.45.

As many as 20 of the 30 Sensex stocks closed with gains.

In the broader market, jewellery stocks such as PC Jeweller, Gitanjali Gems, Tribhuvandas Bhimji and Titan caught buyers’ fancy after RBI relaxed gold import norms.

Sectorwise, Metal index rose by 3.82 per cent, followed by the Capital Goods (1.36 per cent), Realty (1.06 per cent), Power (0.86 per cent) and IT (0.79 per cent) among others.

Buying activity gathered momentum in small and mid-cap sector stocks as well. The BSE Smallcap index edged up by 0.10 per cent and midcap index gained 0.04 per cent.

Foreigners bought shares worth a net Rs 2,187.96 crore yesterday as per provisional data from bourses.