Reliance Cap and SBI star performers, Sensex above 16200

11:30 am Its a quiet session on the street today with the Sensex and Nifty up by half a percent. The Sensex, the barometer of the Indian economy, is trading at 16,223, up 51 points from the day’s low and off 63 points from the day’s high. The S&P CNX Nifty is holding above the 4,900 level. The market breath is strong. On the NSE, 916 stocks advanced while 403 declined. A statement from G8 leaders after a summit over the weekend boosted sentiment. The Group of Eight economies stressed on Saturday that their “imperative is to promote growth and jobs”, as they also recognized problems among European banks and gave verbal backing for Greece to stay in the euro, as per Reuters.

The broader markets are also doing well in today’s trade. The Small-cap index is up 1 percent while the mid-cap index is up 0.7 percent. Among sectoral indices, realty, capital goods and bankex are the top gainers.

Jai Bala, chief market technician of cashthechaos.com says that the market is extremely oversold at this point and that you might see the Nifty bounce back to 5,050 or even 5,130. However, the market will then reverse lower and head back to the lows below 4,530, he added.

Among the 30-share Sensex pack, SBI is the top gainer with a jump of 3.5 percent, probably extending Q4 gains followed by Maruti Suzuki and Tata Power. The losers include Bajaj Auto and Wipro. Tata Steel is also down after it reported weak March quarter numbers.

Stocks that are in news are Reliance Anil Dhirubhai Ambani (ADA) group stocks as they moved up after they moved into black this quarter. Reliance Capital reported consolidated profits at Rs 329 crore versus a loss of Rs 6.5 crore year on year.

Suzlon Energy also comes in among the top gainers after it said that it is in advance stage to raise $300 million to meet FCCB obligation. The company seeks 45 days extension from bondholders. Its FCCBs would come up for redemption on June 12.

Manappuram Finance and Bata India are also up 3-4 percent.