Frenzied buying coupled with short covering after three straight
day's of fall triggered a solid rally in late trade. Reports of
Prime Minister's resignation had spooked a sell-off in mid-morning
trade. Despite the rally, the market breadth remained negative. The
market witnessed choppy swings throughtout the day. Global cues
were mixed.
Earlier today, the market saw firm start despite weak global cues,
but slipped in red shortly on fresh selling. The market breadth was
weak. Shares from oil, realty, declined while those from IT, FMCG
and power rallied.
The 30-share BSE Sensex ended up 254.93 points or 1.64% at
15,769.72. Sensex gained 300.01 points at its high of 15814.80
touched during late trade. It lost 200.72 points at day's low of
15,314.02, touched in mid-morning trade.
The BSE Sensex had eroded 900.78 points or 5.48% from 16,415.57 in
past three trading days to 15,514.79 on 4 June 2008. Fears of early
election, uncertainity over fuel price hike and weak global markets
played the spoilsport.
The broader based S&P CNX Nifty was up 91.35 points or 1.99% to
4,676.95. Nifty June 2008 futures were at 4671, at a discount of
5.95 points as compared to spot closing.
The market breadth was negative on BSE with 1240 shares advancing
as compared to 1397 that declined. 77 remained unchanged.
The BSE Mid-Cap index rose 0.05% to 6400.29 and BSE Small-Cap index
rose 0.2% to 7,735.5961. Both these indices underperformed the
Sensex.
BSE clocked a turnover of Rs 5578 crore today as compared to a
turnover of Rs 6461.80 crore on 4 June 2008.
The NSE futures & options (F&O) segment turnover was Rs 51017.9
crore, which was higher than Rs 48,378.31 crore on Wednesday, 4
June 2008.
Among the sectoral indices on BSE, the BSE Consumer Durables index
(down 1.42% to 4,031.72), BSE Realty index (down 0.99% at
6,326.05), BSE Auto (down 0.08% at 4,222.01), The BSE Oil & Gas
index (up 0.02% to 10,061.83), BSE Capital Goods index (down 0.03%
at 12,111.63), underperformed Sensex.
However the BSE IT index (up 5.01% to 4,617.44), BSE TecK index (up
3.45% to 3,525.65), BSE Power (up 2.89% to 2,708.49), BSE FMCG
index (up 2.48% to 2,426.16), BSE Bankex (up 1.92% at 7,348.58),
BSE Health Care index (up 1.9% at 4,345.89), BSE Metal index (up
1.89% to 15,714.59), BSE PSU index (up 1.84% to 6,719.54),
outperformed the Sensex.
Among the 30-member Sensex pack, 22 advanced while the rest
slipped.
IT stocks were the stars of the day's trading session, boosted by
firm US dollar against Indian rupee. Wipro (up 6.25% to Rs 528.40),
Satyam Computer Services (up 5.47% to Rs 512.20) and TCS (up 2.57%
to Rs 982.75) edged higher.
India's second largest software services exporter Infosys jumped
5.86% to Rs 1979.70 on reports the firm is eyeing acquisitions in
Europe to reaccelerate its growth. However the target company's
name and size was not disclosed in the report.
Sahara Housing Finance Corporation was locked at 5% lower circuit
filter at Rs 178 after the Reserve Bank of India banned a group
financial firm Sahara India Financial Corporation from accepting
public deposits after it was found guilty in violating various
regulatory norms.
Mercator Lines soared 12.70% to Rs 118.50 after its Singapore-based
unit bagged a renewed 4-year contract from Tata Power worth $320
million.
National Aluminium Company advanced 4.90% at Rs 501.75 on BSE on
reports the firms plans massive investment of around Rs 40,000
crore in next five years in its various expansion projects.
Shares of upstream companies rallied after the subsidy burden that
they have to bear became clear post fuel price hike announced
yesterday, 4 June 2008, which had remained uncertain until now.
Oil and Natural Gas Corporation soared 7.46% to Rs 953.20 and Gail
India jumped 7.39% to Rs 398.30.
Upstream oil companies ONGC and GAIL India absorb most of subsidy
burden arising in the form of under-recoveries of oil marketing
companies. The duo will now have to bear Rs 45,000 crore in subsidy
burden, which is at historically high levels.
However the public sector oil-marketing companies extended losses
today after yesterday's fuel price hike. HPCL (down 6.26% to Rs
226.30), Indian Oil Corporation (down 6.29% to Rs 391.90) and BPCL
(down 7.01% to Rs 301.35) edged lower.
Power stocks advanced on fresh buying. Tata Power Company (up 7.79%
to Rs 1256.65), NTPC (up 5.57% to Rs 166.65), Reliance
Infrastructure (up 5.68% to Rs 1130.85) edged higher.
FMCG stocks rose. Tata Tea (up 5.02% to Rs 816.30), Hindustan
Unilever (up 3.23% to Rs 237.85), ITC (up 2.89% to Rs 222.35) edged
higher.
Jaiprakash Associates (up 3.68% to Rs 205.60), Grasim Industries
(up 3.19% to Rs 2,246.30), Tata Steel (up 3.1% to Rs 840.90), ICICI
Bank (up 3.09% to Rs 781.25), HDFC Bank (up 2.22% to Rs 1,243),
were the top gainers from Sensex pack.
Tata Motors (down 1.82% to Rs 532.60), Larsen & Toubro (down 1.6%
to Rs 2,721.20), Ambuja Cements (down 1.89% to Rs 85.85), Reliance
Industries (down 2.58% to Rs 2247.65), were the top losers from
Sensex pack.
Interest rate sensitive realty sector declined on fears of hike in
interest rates or CRR after inflation may rally to double-digit
post fuel price hike announced yesterday, 4 June 2008.
Indiabulls Real Estate (down 1.6% to Rs 405.45), Phoenix Mills
(down 3.99% to Rs 319) and DLF (down 3 % to Rs 538.45) edged lower
from realty pack.
India's largest maker of utility vehicles, Mahindra and Mahindra
(M&M) declined 0.92% to Rs 562.75. It announced signing an
agreement to acquire 100% stake in Italy based Engines Engineering.
Engines Engineering is in the business of two wheels design and
developing of motorcycle prototype.
India's second largest telecom services provider Reliance
Communications rose 1.3% to Rs 547.15. As per reports Reliance
Communications and South Africa's MTN have begun due diligence as
they inch closer to creating a global top-10 telecoms firm.
Reliance Communications has also engaged Deutsche Bank for the
possibility of roping in private equity firms for part of the deal,
the source said. Blackstone Group Carlyle Group and Apax were
interested to put in $4 billion to $5 billion, reports added.
India's largest cement maker by sales ACC rose 1.09% to Rs 639.70.
Its cement shipments in May 2008 fell to 1.8 million tonnes from
1.82 million tonnes a year earlier. Production fell to 1.79 million
tonnes from 1.82 million tonnes during the similar period.
IFCI clocked the highest volume of 1.9 crore shares on BSE. Anu's
Laboratories (1.25 crore shares), Ispat Industries (1.21 crore
shares), Chambal Fertilisers and Chemicals (1.14 crore shares) and
Reliance Natural Resources (1.14 crore shares) are among other
gainers in that order.
Reliance Industries clocked the highest turnover of Rs 418.91 crore
on BSE. Anu's Laboratories (Rs 353.59 crore), Reliance Capital (Rs
266.36 crore), Gokul Refoils and Solvent (Rs 210.66 crore) and
ONGC(Rs 204.36 crore) are among other turnover toppers in that
order.
India's largest wind turbine maker Suzlon Energy soared 8.66% to Rs
268.60. The stock moved up on reports that REpower Systems, in
which Suzlon holds 33.6% stake, has bagged an order to supply 100
wind turbines to US-based enXco.
Tech Mahindra rose 7.52% to 847.85. The stock galloped after the
firm said it signed a multi-million dollar deal with Botswana
Telecommunications. The company sees revenues of upto $10 million
over the next 3-5 years from the deal.
In a crucial development, government yesterday, 4 June 2008 agreed
to raise its petrol and diesel prices by about 10% in an attempt to
curb mounting losses of state-owned refiners thereby stoking
inflation and risking a political backlash. After 10 days of debate
over the price increase, the Cabinet also agreed to cut the import
duty on crude oil to support state run refining and retailing
firms. Customs duty on crude was also reduced to nil from 5%. The
duty cuts would amount to Rs 22,660 crore in revenue loss, the
Revenue Secretary said.
Meanwhile, the ruling Left Front in West Bengal has called a
12-hour general strike today, 5 June 2008 in protest against the
'anti-people' decision of the Centre to raise the prices of petrol,
diesel and cooking gas.
Analysts opine that higher inflationary expectations immediately
gave rise to fears of a cash reserve ratio (CRR) or interest rate
hike, which is a negative for markets.
European markets were trading mixed. Key benchmark indices from
France, and Germany were up between 0.08% to 0.11%. While UK's FTSE
100down 0.26%.
Asian markets were mixed today, 5 June 2008. Japan's Nikkei
Singapore's Straits Times, South Korea's Seoul Composite, and
China's Shanghai Composite, were down by between 0.08% to 0.65%.
Hong Kong's Hang Seng and Taiwan's Taiwan Weighted were up between
0.55% to 1.28%.
US markets ended mixed in volatile session yesterday, 4 June 2008.
Banks fell to their lowest level in eight years on Fed Chairman Ben
Bernanke's warning that inflation is still a concern. Financials
tumbled on rumors that Moody's May Put bond insurers AMBAC and MBIA
on review for a possible credit rating downgrade.
The Dow Jones industrial average slipped 12.37 points, or 0.10%, to
12,390.48. The Standard & Poor's 500 index was down 0.45 points, or
0.03%, to 1,377.20, while the Nasdaq advanced 22.66 points, or
0.91%, to 2,503.14.
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