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Classical pull back rally becomes evident in Indian stock markets

August 29th, 2011

The Indian stock markets witnessed a classical pull back rally with the Sensex gaining 567.50 points and the Nifty gaining 171.80 point. The Sensex is at 16416 while the Nifty managed to close above the 4900 mark at 4919.60. The Small and Midcap stocks fared well while the bigger gainers are the large cap stocks. The broader BSE Sensex is up 3.28% while the BSE Midcap Index and the Smallcap Index is up 2.06%.

IT stocks are the biggest gainers today. The BSE IT index is up 5.06%. This was followed by Metal, Realty, Bankex and Capital goods which are up over 4%.

ADAG stocks bounded anywhere between 6% to 8%. Reliance Capital is up 9.6%. HCL Tech, TCS, Reliance Power are all up over 7%. Jindal Steel, Jaiprakash Associates, Kotak Mahindra Bank and Reliance Communications are up 6.37%.

Reliance managed to close above the Rs. 75 mark today and last traded at Rs 76.80 after touching an intra-day high of Rs. 78.75.

The losing stocks, though few in number, had two largecap names. ONGC is down 1.08% while Maruti Suzuki is down 0.37%.

Maruti Suzuki (BSE: 532500; NSE: MARUTI; ISIN: INE585B01010) has suspended 21 workers, five of them are suspended at Manesar unit which is leading to temporary production problems at the plant. Apart from the quantity of production, there are some quality issues that have cropped up last week because some workers are deliberately tampering with the quality of the product, according to the management which is addressing the issues.

Analysts are rejecting the script. Equityrush gave an exit call and says the script can test Rs. 980-990 levels shortly.

The pullback rally in stocks today has made Reliance Industries overtakes ONGC and become the most-valued company in the Indian market. Coal India, the earlier challenger to RIL, has dropped to #3 position.

Construction & Contracting Company, IVRCL (BSE: 530773; NSE: IVRCLINFRA; ISIN: INE875A01025) moved smartly and closed the day at Rs. 35.05 gaining over 9% in trade today.

Entry Filed under: Equity Markets, Automobile, Oil & Petro Chemicals, Closing Bell, Infrastructure