Among the frontliners, TCS, Wipro, Satyam, Infosys, HDFC Bank and HCL Tech have gained 6-9.5%. However, BHEL, Grasim, DLF, ACC, M&M and Unitech tumbled over 5.5-8%.

BSE FMCG Index was up by 38.59 points or 2.08% to 1,897.58. United Spirits was up by 13%. ITC, Marico and Godrej Consumer went up 2-4%.

Pharma stocks like Dr Reddys Labs, Sun Pharma, Dishman Pharma, Lupin and Aventis Pharma were up by 4-9%. Healthcare Index jumped by 1.6% or 51.47 points, to settle at 3,260.49.

Metal Index rose by 85.65 points or 1.48% to 5,887.36. SAIL, JSW Steel and Guj NRE Coke gained 4-7%. Hindalco and Tata Steel were up by 1.75-1.95%.

Oil & Gas Index gained 42.94 points or 0.66%, to close at 6,522.50. Cairn India, Aban Offshore, HPCL, Reliance Industries, Essar Oil and ONGC were gainers.

However, Realty Index tumbled 94.28 points or 3.73% to 2,430.61. Parsvnath, DLF, Omaxe, Unitech, Ansal Properties and Phoenix Mills lost 5-8%.

Power Index fell 34.05 points or 1.99% to 1,678.22. CESC, Torrent Power, Tata Power, GMR Infra, Reliance Infra and Suzlon Energy were losers.

Capital Goods index was down by 70.86 points or 0.98% to 7,170.50. BHEL fell over 8%. Kirloskar Oil, Elecon Engg, Alstom Projects, Praj Industries, Crompton Greaves, Thermax, Bharat Electronics and BEML were other losers.

Auto stocks Auto Index lost 0.87%, to close at 3,072.52. Cummins, Exide Industries, M&M, Apollo Tyres and Bharat Forge fell 3-6%. MRF and Hero Honda were other losers.

The BSE Midcap index lost 38.49 points or 1.09%, to end at 3,506.35 and the Small Cap Index fell 55.04 points or 1.32% to 4,112.82.

Among the midcap stocks, United Breweries, Core Projects, Balrampur Chini, Balaji Telefilm and Piramal Health fell 11-20%.

In the small cap space, Dynamatic Tech, Subex, Marathon Nextgen and MSK Projects lost 14-16%.

Telecom stocks like Tata Communication, MTNL and Bharti Airtel gained 4.5-6.5%. However, Idea Cellular and Reliance Communication were losers.

Sugar stocks like Renuka Sugar fell 7.5%. Balrampur Chini lost 12.4% and Bajaj Hindustan fell 9.4%, as the UP government has hiked State Advised Price (SAP) by Rs 15 to Rs 140. The UP government continued to announce SAP as against SC rule casing.

Daiichi Sankyo has acquired a 52.5% stake in India’s largest pharmaceutical company Ranbaxy Labs, after the Ranbaxy board approved preference allotment of shares and warrants to Daiichi. Daiichi Sankyo has acquired 8.19 crore shares from Ranbaxy promoters. Ranbaxy now becomes a subsidiary of Daiichi Sankyo. The stock closed at Rs 261.70, up Rs 5.50, or 2.15%.

Market breadth was weak throughout the day; about 1100 shares have advanced while 1891 shares have declined. Nearly 197 shares remained unchanged.

Total traded turnover stood at Rs 65,024.86 crore. This includes Rs 10,065.52 crore from NSE Cash segment, Rs 51,272.30 crore from NSE F&O segment and Rs 3,687.04 crore from BSE Cash segment.

Positive Asian and European markets were supportive for our markets as well. Among the Asian markets, Hang Seng went up 5.28% and Nikkei surged 3.59%. Shanghai, Straits Times, Jakarta, Kospi and Taiwan rose 2-3%.

European markets were trading higher. FTSE was up by 2.13% followed by CAC and DAX, which rose 1.72% and 1.41%, respectively.

The Dow Jones Futures was up by 191 points and the Nasdaq up by 37 points, at 4:30 pm.

Market Snapshot

RBI cuts Repo Rate by 100 bps to 8% (First Repo Rate Cut Since August 2003)

Sensex up 247 points to end at 10223, Nifty up 48 points to end at 3122

Gains led by IT stocks and Banking stocks

CNX Midcap Index down 0.36%, BSE Small-cap Index down 1.32%

BSE IT up 8%, Wipro up 9.4%, Hcl Tech up 9%, Satyam up 8.6%, TCS up 8.2%, Infosys up 7.6%

BSE Bankex up 2.6%, Hdfc Bank up 5.2%, Icici Bank up 5.1%, Canara Bank up 5.1%, BOB up 2.7%

BSE Realty down 3.7%, Dlf down 6.5%, Unitech down 5.8%, Parsvnath down 8%

Index Gainers: Sail up 6.6%, HDFC up 5.6%, Cairn up 5.3%, Bharti up 4.5%

Index Losers: Bhel down 7.8%, Acc down 5.7%, Ambuja Cement down 5.6%, M&M down 5.3%

Mid Cap Gainers: United Spirits up 13.5%, Rolta up 9.9%, Pantaloon up 8.6%, Ivrcl Infra up 7.3%

Mid Cap Losers : Core Proj down 16.3%, Balaji Tele down 11.9%, Strides Arcolab down 12%

Sugar Losers : Renuka down 7.5%, Balrampur Chini down 12.4%, Bajaj Hind down 9.4% (UP Govt continues to announce SAP as against SC rule casing))

Adv - Dec Ratio at 1:1.75

Total market turnover at Rs 65024.86 crore versus Rs 72822.47 crore

Nse F&O Turnover at Rs 51272.30 crore versus Rs 55892.72 crore

F&O Snapshot

Fresh Long build up seen in Nifty Fut, ends at a premium of 38.2 points

IT Stocks sees fresh long build up

Fresh short build up in large cap real estate stocks

Metal stock sees long build up, but CoC still negative

Options Activity:

Nifty 3100 call adds 5.3 lakh shares

Nifty 3300 call adds 3.7 lakh shares

Nifty 3200 call adds 3.1 lakh shares

Fresh Long :

IT : Infosys , Wipro , Satyam ,

Metals : Tata Steel , Sterlite Ind , Sail

Misc : Indian Bank , Chambal Fert , Can Bank , Ivrcl

Fresh Short: DLF , Unitech , Renuka

The market has ended sharply higher. Strong upmove was seen on account of repo rate cut, positive European and Asian markets and huge surge in technology stocks. Buying was also seen in banking, FMCG, pharma, metal and few oil stocks. However, realty, power, few auto and capital goods stocks were under pressure. Selling was also seen in midcap and small cap stocks.

The Sensex closed with a gain of 247.74 points or 2.48% at 10,223.09, after hitting an intraday high of 10,538.05. The NSE Nifty Fifty Index surged by 48.45 points or 1.58%, to settle at 3122.80. It has hit a high of 3238.40.

Technology stocks took a big pie in today's gain of benchmark indices. IT Index went up 204.19 points or 8.05%, to close at 2,741.46. HCL Tech, Rolta, TCS, Wipro, Satyam, Infosys, Tech Mahindra and Mphasis were up 7-10%. The Indian rupee was trading at around 48.7-49 to a dollar.

RBI's move of 100 bps repo rate cut with immediate effect has also played a key role in today's trade. The current repo rate (the rate at which banks borrow from RBI) stood at 8% from earlier 9%. This was the first repo rate cut by RBI since August 2003. RBI had already cut cash reserve ratio (CRR) by 250 bps in the last two weeks. All these moves are to increase liquidity in the banking system.

source:moneycontrol

The Reserve Bank of India, or RBI has cut the repo rate by 100 bps to 8% with immediate effect. This is the first repo cut since 2003.