Frenzied buying in late trade helped market snap its five-day loosing streak. Firm European and Asian markets boosted the sentiment further. However the gains came on the back of series of gyrations in choppy trade. The market, which had opened lower tracking weak US markets on Friday, 9 May 2008, accentuated fall in afternoon trade triggered by dismal industrial production data. Both the niche indices – BSE Sensex and S&P CNX Nifty galloped past key levels of 16,800 and 5,000 respectively.
The 30-share BSE Sensex was up 139.85 points or 0.84% to 16,876.92, as per provisional closing. Sensex hit a low of 16,546.55 in early-afternoon trade. At the day’s low, Sensex lost 190.52 points. Sensex gained 160.29 points at the day's high of 16,897.36 hit in late trade.
The broader based S&P CNX Nifty was up 38.70 points or 0.78% at 5,021.30, as per provisional closing.
The industrial production growth dropped sharply to 3% in March 2008. Industrial production rose 3% in March 2008 from a year earlier, slowing from the previous month's unrevised 8.6%, government data showed on Monday, 12 May 2008. It was the slowest annual growth since a 2.4% rise in February 2002.
Manufacturing production rose 2.9% in March 2008 from a year earlier, compared with 8.6% growth in February 2008. Industrial output rose 8.1% in 2007/08 compared with 11.6% in 2006/07.
Despite the rally, the market breadth remained weak indicating limited participation. On BSE, 1746 shares declined as compared to 951 that advanced. 51 remained unchanged.
The BSE Mid-Cap index was down 0.67% to 6,945.91 while the BSE Small-Cap index shed 1.20% to 8,403.56, as per provisional closing. Both these indices underperformed the Sensex
The total turnover on BSE amounted to Rs 5971 crore as compared to Rs 4414 crore by 14:30 IST
Among the 30-member Sensex pack, 22 gained while the rest slipped.
India’s largest pharma company in terms of sales, Ranbaxy Laboratories surged 5.44% to Rs 495 on 6.10 lakh shares. It was the top gainer from Sensex pack. Ranbaxy Laboratories signed a deal to develop new anti-infective drugs for U.S.-based Merck & Co Inc. As per the deal, Ranbaxy will carry out drug discovery and clinical development through Phase IIa clinical trials, while Merck will be responsible for the development and commercialisation.
IT stocks advanced on fresh buying as the rupee fell below 42 level against the dollar, at its lowest in almost 13 months. Satyam Computer Services (up 3.72% to Rs 491), TCS (up 1.08% to Rs 927.40), Wipro (up 1.60% to Rs 509.20), and Infosys Technologies (up 1% to Rs 1768), advanced.
A depreciating rupee augurs well for IT companies as they derive over 50% of their revenues from exports to US.
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) recovered from day’s low of Rs 2480 and settled 1.08% higher to Rs 2555 on 8.44 lakh shares.
Banking stocks staged smart recovery from lower levels. India's biggest commercial bank, State bank of India settled 1% lower at Rs 1659, off day’s low of Rs 1620. India's biggest private sector bank in terms of net profit, ICICI Bank rose 0.22% to Rs 876, off day’s low of Rs 861.15. India’s second largest private sector bank in terms of net profit HDFC Bank rose 1.72% to Rs 1476.90 recovering from session's low of Rs 1430.
India’s largest power generation company in terms of sales, NTPC gained 0.34% to Rs 192.50 after its board decided setting up a research and development fund for undertaking activities leading to development of sustainable energy. The company will allocate 0.5% of distributable profit annually for sustainable energy initiative.
Diversified company Grasim lost 3.76% to Rs 2252 on 44,431 shares. It was the top loser from Sensex pack.
Jaiprakash Associates (down 1.77% to Rs 246.85, off day’s low of Rs 235), ACC (down 1.26% to Rs 703, off day’s low of Rs 690), and Hindustan Unilever (down 1.40% to Rs 246.95, off day’s low of Rs 242.25), though in the red were off their day’s low.
Shares of state-run oil marketing companies declined as US light crude for June delivery was hovering near $126.14 a barrel today, 12 May 2008 after soaring to a record high of $126.27 in late trade on Friday, 9 May 2008. Bharat Petroleum Corporation (down 4.51% to Rs 358), Hindustan Petroleum Corporation (down 2.08% to Rs 237.25), and Indian Oil Corporation (down 4.71% to Rs 421.80), declined.
The sharp spurt in crude prices is putting further pressure on fuel retailers as they continue to sell products below the cost price.
However oil exploration company Cairn India galloped 11.63% to Rs 305.80, also its all time high buoyed by anticipation that higher crude oil prices will boost realisations.
Recently listed Aishwarya Telecom spurted 13.79% to Rs 98.20 on huge volumes of 6.07 crore shares on momentum buying.
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