Markets open strong; banks, power stocks up

Mumbai: The markets are trading with good gains and getting strong support from capital goods, banking, auto, realty, power, technology and pharma stocks. Midcap and small cap stocks also bounced back.

However, FMCG stocks are under selling pressure. On the global front, Asian markets are trading in positive terrain barring Shanghai.

At 1029 hrs IST, the Sensex was up 212 points at 15,101 and the Nifty up 57 points at 4,506. The Nifty June Futures was trading at 4490 with a 15-point discount.

Market breadth is positive, nearly 863 shares have advanced while 195 shares declined on the NSE.

Daiichi Sankyo is planning to buy stake in Ranbaxy via Yen 300-400 billion tender offer (this offer is approximately of $2.7-3.7 billion). The stock has started giving up gains after this offer and is trading at Rs 557, down by 0.67 per cent.

Natco Pharma is another stock, shot up 18 per cent at Rs 84 on the news that the company has cracked technology to develop Teva's multiple sclerosis drug Copaxone. Copaxone has US sales of over $2 billion. Natco has tied up with US generic company Mylan for marketing drug worldwide.

Top gainers were HDFC, BHEL, Cipla and Bharti Airtel while ITC, HUL, Reliance Communications, Cairn India and Siemens losers.

Ranbaxy Labs, Reliance Industries, JP Associates, L&T, Bharti Airtel and DLF were most active counters on the bourses.

Markets at 0956 hrs IST: Sensex back above 15K in opening trade

The markets have shown smart bounce back after got beaten down for last few sessions and opened higher following green cues from Asian markets.

The Sensex has moved back to 15000 mark and the Nifty is hovering around 4500 level. Top gainers in the morning were TCS, Unitech, ONGC and Reliance Infra. Buying has seen in pharma, capital goods, metal and technology stocks.

Among frontliners, BHEL, Ranbaxy Labs, Zee Enter, Unitech, ONGC, Suzlon, Cipla, Reliance Infra, L&T, Ambuja Cements, Maruti, HCL Tech, Tata Steel, SAIL and Satyam have gained.

At 0956 hrs IST, the Sensex was up 194 points at 15,083 and the Nifty up 56 points at 4,506. CNX Midcap GHCL is the star on Wednesday, up 20 per cent at Rs 53.65 after the news that Middle East based Al Rostamani may buy 25 per cent stake in GHCL.

Ranbaxy Laboratories is going to hold a press conference on Wednesday. There have been rumours that company may announce some acquisition or joint venture with overseas company. The stock went up 3.47 points at 580.20.

Asian markets have recoverd from Wednesday's low and trading in the green. Hang Seng was up 0.42 per cent or 98.68 points at 23,474.20. Nikkei 225 Average rose 105.47 points or 0.75 per cent at 14,126.64.

Jakarta Composite was up 0.16 per cent or 3.89 points at 2,377.71. Straits Times shot up 30.24 per cent or 1 per cent at 3,063.29. Seoul Composite was up 8.03 points or 0.45 per cent at 1,782.41. Taiwan Weighted rose 0.22 per cent or 18.20 points at 8,388.20. However, Shanghai Composite was down 16.37 points or 0.53 per cent at 3,055.96.

US markets struggled to hold onto gains as bank stocks rallied but comments from Bernanke clouded market sentiment. Fed Chairman Ben Bernanke said that high energy prices risk increasing overall inflation and the central bank would "strongly resist" high inflation.

The Dow Jones was up 9 points at 12,290, the Nasdaq however was down 11 points at 2449 and the S&P 500 was down three points 1,358.

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