Volatility was the order of the day ahead of the expiry of the near
month October 2008 derivatives contracts. The market swung between
positive and negative negative zone throughout the day with Sensex
provisionally gaining 55.85 points or 0.62%. Gains in some Asian
and European marekts supported domestic bourses.
Reliance Communications slumped 10.59% wheeras Hindalco Industries
surged 18.24% ahead of their Q2 results due on Friday, 31 October
2008. The market breadth was weak, reflecting caution among
investors after a recent setback in share prices.
Major Asian markets rose on hopes the Bank of Japan and the Federal
Reserve will cut interest rates this week to spur growth, and as
credit markets continued to show signs of recovery. Key benchmark
indices in Japan and Taiwan were up by between 0.15% to 7.74%.
However, Key benchmark indices in China, Hong Kong, Singapore and
South Korea were down between 0.97% to 3.02%.
Key European markets also rose on Fed rate cut expectations. Key
benchmark indices in France and UK were up by between 3.93% to
6.24%. However, Germany's DAX fell 2.74%. The Fed is seen cutting
interest rates at a two-day policy meet that concludes today, 29
October 2008.
As per the provisional figures, the BSE 30-share Sensex was up
55.85 points or 0.62% to 9.063.93. The Sensex jumped 289.68 points
at the day's high of 9.297.76 in early trade. After a firm opening,
the market dipped in red for a while only to regain the positive
terrain. The Sensex fell 113.74 points at day's low of 8,894.34 in
mid-morning trade.
The S&P CNX Nifty was up 24.25 points or 0.9% to 2,708.85 as per
the provisional figures.
Most of the derivatives positions are normally rolled over at the
time of expiry of near month contracts. This is done by closing the
derivative position for the near month and taking a similar
position in the subsequent's month's series.
The BSE clocked a turnover of Rs 3,091 crore today, 29 October 2008
compared to a turnover of Rs 3388.65 on Monday, 27 October 2008.
The BSE Mid-Cap index was down 1.73% at 3,102.73. The BSE Small-Cap
index was down 0.72% at 3,684.80. Both the indices underperformed
the Sensex.
The market breadth was weak. On BSE, 1121 shares advanced as
compared to 1302 that declined. 74 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) jumped 5.65% to Rs 1,218 on
shutting down polypropylene plant at the Jamnagar refinery complex
with the objective of improving product swing capability and
increasing propylene yield. The shutdown is expected to last for
approximately four weeks.
ACC (up 8.8% to Rs 482), Tata Power Company (up 5.25% to Rs 622),
Jaiprakash Associates (up 3.27% to Rs 61.60), were the major
gainers from the Sensex pack.
India's largest oil exploration firm by revenue ONGC rose 1.49%
ahead of Q2 September 2008 result to be announced today.
DLF (down 8.16% to Rs 19.90), Ranbaxy Laboratories (down 5.59% to
Rs 180.55), Hindustan Unilever (down 4.83% to Rs 208) were the
major losers from the Sensex pack.
Reliance Communications slumped 10.59% ahead of its Q2 results due
on Friday, 31 October 2008.
Auto stocks rose after Mahindra & Mahindra (M&M), India's largest
tractor maker by sales, said the demand for its products remains
healthy despite fears of a global recession. M&M rose 7.35%,
despite 20.6% fall in net profit to Rs 226.77 crore on 13.25% rise
in total income to Rs 3252.26 crore in Q2 September 2008 over Q2
September 2007. Maruti Suzuki India, Hero Honda Motors, Tata Motors
rose by between 0.15% to 5.28%.
Metal stocks rose on rebound in metal prices triggered by strong
rally in global stocks. The BSE Metal index gained 7.73% and was
the biggest gainer from the sectoral indices on BSE. Tata Steel,
Sterlite Industries, Hindustan Zinc rose between 2.49% to 15.13%.
India's largest aluminum maker by sales Hindalco Industries surged
18.24% ahead of Q2 September 2008 result due on riday 31 October
2008.
India's second largest aluminum producer by sales National Aluminum
Company dipped 1.85%, ahead of Q2 September 2008 result to be
announced today.
Banking stocks were mixed despite overnight spurt in American
depository receipts (ADRs). India's second largest private sector
bank by net profit HDFC Bank fell 1.98%. HDFC Bank ADR ended up
16.17%. India's largest private sector bank by net profit ICICI
Bank gained 3.19%, as ADR rose 18.96%. India's largest commercial
bank State Bank of India slipped 2.01%.
IT stocks were mixed as a strong rupee offset rally in ADRs.
India's third largest IT exporter by sales Satyam Computer Services
fell 5.44%, even as ADR rose 16.83%, India's fourth largest IT
exporter by sales Wipro rose 7.33%, as ADR jumped 22.84%. India's
second largest IT exporter by sales Infosys gained 1.82%, as ADR
jumped 15.55%. India's largest IT exporter by sales Tata
Consultancy Services jumped 0.37%.
Oracle Financial Services Software galloped 11.76% on winning an
overseas order.
India's rupee rose for a second day as local stocks extended their
best gains in two weeks made yesterday on optimism measures by
governments worldwide will ease the global credit crunch. The rupee
rose 0.1 % to 49.8325 per dollar from 49.8575 on 27 October.
Tata Tea lost 2.61% on reports it may cut tea prices.
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