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metals rally continues

May 312009
 

asia-stock Key indices were facing selling pressure at higher levels after a strong opening. Realty, metals and power stocks pared gains but were

still the top performing sectors while banking space showed weakness.
“US markets were positive and other Asian markets are positive. Our GDP numbers came at 5.8% which was way above market expectation and we believe that this numbers just goes to show the resilience of our economy
. We continue to believe that our market is in overbought territory and hence once should book profits at every rise. We expect market to open up but expect some profit booking to
at higher levels for the day,” said Religare Securities report.

At 11:10 am, Bombay Stock Exchange’s Sensex was at 14723.89, up 98.64 points or 0.67 per cent. The index touched an intra-day high of 14906.81 and low of 14714.30.

National Stock Exchange’s Nifty slipped below 4500 to 4487.25, up 38.30 points or 0.86 per cent. It touched an intra-day low of 4450.40 and high of 4545.40.

“Trend deciding level for the day is 4426 / 14557. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 4511 – 4573 / 14795 – 14965. However, if Nifty trades below 4426 / 14557 for the first half-an-hour of trade then it may correct up to 4364 / 14388,” said Angel Broking note.

However, the buying activity continued in the tier II stocks. BSE Midcap Index was up 2.60 per cent and BSE Smallcap Index gained 2.68 per cent.

Amongst the sectoral indices, BSE Realty Index was up 4.37 per cent, BSE Metal Index gained 3.53 per cent and BSE Power Index was up 2.49 per cent. BSE Bankex was down 0.23 per cent.

Jaiprakash Associates (7.95%), NTPC (6.13%), Tata Steel (4.77%), Reliance Communications (4.07%) and Hindalco (3.90%) were amongst the Sensex gainers.

Bharti Airtel (-2.84%), ICICI Bank (-1.61%), Ranbaxy Laboratories (-1.26%), TCS (-1.06%) and HDFC Bank
(-0.87%) were amongst the index losers.

Market breadth was positive on the BSE with 1979 advances and 477 declines.

Stocks across Asia picked extended gains after encouraging manufacturing data from China. The Nikkei rose 1.44 per cent, Hang Seng picked up 2.77 per cent and Straits Times climbed 1.92 per cent.

US stocks advanced on Friday on the back of rising commodity prices which boosted shares of natural resource companies. The Dow Jones Industrial Average gained 96.53 points, or 1.15 per cent, to 8,500.33. The Standard & Poor’s 500 Index climbed 12.31 points, or 1.36 per cent, to 919.14 and the Nasdaq Composite Index rose 22.54 points, or 1.29 per cent, to 1,774.33.

Meanwhile, oil prices climbed 1 percent to hit a fresh seven-month high on Monday on expectations for a global economic recovery which boosted equity markets. US light, sweet crude was trading at $66.97 a barrel, 66 cents higher. news beuro,

Rupee up against dollar

May 312009
 

finance3 The rupee on Monday gained 13 paise against the dollar in early trade, on the back of losses in the US unit against major currencies and
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hopes of an increased capital inflow by foreign funds as markets may open higher following strong Asian cues.
At the Interbank Foreign Exchange (Forex) market, the local currency, which had ended at a one-week high of 47.11/12 on Friday, strengthened by 13 paise to 46.98 today.

Forex dealers said the greenback’s weakness against other currencies and reinforced expectations of market-friendly moves, mainly supported the rupee.

Increased capital inflows in the equity markets, which are expected to open in tandem with other Asia bourses, also supported the rupee, they said.

The Sensex had gained 329.24 points to close at 14,625.25 on Friday.

Meanwhile, Asian bourses are quoting as much as two per cent higher in early trade.
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Stocks to open higher on Asia

May 312009
 

dalal-streetThe rally on Dalal Street is likely to continue on Monday in line with its Asian peers. Stocks across Asia picked up steam buoyed by

encouraging manufacturing data from China. The Nikkei rose 0.75 per cent, Topix added 0.95 per cent, Hang Seng picked up 1.53 per cent and Straits Times climbed 1.23 per cent.

US stocks advanced on Friday on the back of rising commodity prices which boosted shares of natural resource companies. The Dow Jones Industrial Average gained 96.53 points, or 1.15 per cent, to 8,500.33. The Standard & Poor’s 500 Index climbed 12.31 points, or 1.36 per cent, to 919.14 and the Nasdaq Composite Index rose 22.54 points, or 1.29 per cent, to 1,774.33.

Meanwhile, oil prices climbed 1 percent to hit a fresh seven-month high on Monday on expectations for a global economic recovery which boosted equity markets. US light, sweet crude was trading at $66.97 a barrel, 66 cents higher.

Back home, equities extended gains for the third consecutive day Friday, as investors cheered encouraging GDP data and talks of oil price deregulation. The rally was led by realty and capital goods, with support from consumer durables, automobile and oil & gas stocks.

Bombay Stock Exchange’s Sensex ended the day at 14,625.25, higher by 329.24 points or 2.30 per cent from the previous close. The 30-share index touched a high of 14,727.28 after starting the day 14,319.87—also the low.

National Stock Exchange’s Nifty rose 111.85 points or 2.58 per cent to settle at 4448.95. The broader index climbed to a high of 4488.05 from an early low of 4340.75. News beuro,

Nifty at 9-month high

May 312009
 

bombay-stock1 Equities opened sharply higher on Monday on the back of advances across Asia and US. All sectoral indices were trading with massive

gains, with realty and metal stocks leading the pack

Bombay Stock Exchange’s Sensex was at 14847, up 221 points while National Stock Exchange’s Nifty was trading at 4517, higher by 68.6 points.

Stocks across Asia picked up steam buoyed by encouraging manufacturing data from China. The Nikkei rose 0.75 per cent, Topix added 0.95 per cent, Hang Seng picked up 1.53 per cent and Straits Times climbed 1.23 per cent.

US stocks advanced on Friday on the back of rising commodity prices which boosted
shares of natural resource companies. The Dow Jones Industrial Average gained 96.53
points, or 1.15 per cent, to 8,500.33. The Standard & Poor’s 500 Index climbed 12.31 points, or 1.36 per cent, to 919.14 and the Nasdaq Composite Index rose 22.54 points, or 1.29 per cent, to 1,774.33.

Meanwhile, oil prices climbed 1 percent to hit a fresh seven-month high on Monday on expectations for a global economic recovery which boosted equity markets. US light, sweet crude was trading at $66.97 a barrel, 66 cents higher. News beuro,

IT stocks gain

May 282009
 

industrial Stocks were trading on a firm footing shrugging off the weakness across global markets. Realty and technology stocks continued to attract
BSE

investor interest.

“The market is likely to remain volatile ahead of derivatives expiry for May series and weak global markets may put pressure on domestic indices. However, presence of strong bullish sentiment may help the market to turn positive. The Nifty could test higher levels at 4325 and may dip around 4225, while the Sensex has a likely support at 13950 and may face resistance at 14250,” said brokerage firm Sharekhan in a research note.

Bombay Stock Exchange’s Sensex was trading at 14,302.30, higher by 1.37 per cent or 192.66 points. The index touched a high of 14,308.47 and low of 14,078.62. National Stock Exchange’s Nifty climbed 0.99 per cent or 42.25 points to 4318.30. The index touched a high of 4325.70 and low of 4254.85 in trade so far.

Secondline stocks also witnessed decent amount of buying activity. BSE Midcap Index climbed 0.91 per cent and BSE Smallcap Index rose 0.96 per cent.

Sectorwise, BSE Realty Index was up 2.95 per cent, BSE IT Index climbed 1.75 per cent BSE Oil & Gas advanced 1.52 per cent and BSE Bankex edged 0.22 per cent higher.

Biggest Sensex gainers comprised Bharti Airtel (3.91%), Larsen & Toubro (3%), DLF (2.74%), Ranbaxy Laboratories (2.73%) and Mahindra & Mahindra (2.51%).

Sterlite Industries (-1.98%), Reliance Infrastructure (-1.58%), BHEL (-1.52%), Maruti Suzuki (-0.66%) and ONGC (-0.43%) were the losers.

Market breadth on BSE showed 1603 advanced against 578 declines.

On a stock specific note, shares of Novartis India rose as much as 20 per cent after parent Novartis raised its open offer price to Rs 450 rupees a share from Rs 351. Shares gave up some gains but were still trading up 14 percent at Rs 444.30.

Religare Enterprises climbed 4.28 per cent on media reports that Swiss Re, the world’s second-largest reinsurer, is in talks with the financial services firm for a joint venture health insurance company.
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IT stocks lift Sensex

May 272009
 

asian-stock-marketAsian markets were gains modest by trading
The key benchmark indices advanced in the early deals on Thursday led by gains in realty, IT and capital goods stocks. While Wall Street ended lower,
The benchmark Sensex was up 132 points at 14,241 levels and the Nifty was up 30 points at 4,306 levels.

The underlying strength of the market comes from the huge amount of liquidity that is there. Next month, the Nifty may touch 4,500 after which the markets may see a sharp correction,
Buying interest was seen in realty, IT and capital goods stocks. The realty index on the BSE gained 2.5 per cent and the IT index rose 2 per cent. The BSE auto index also surged 0.6 per cent.

The Nifty has good support at 4,200. Investors should enter the markets at 4,000-4,100 levels,
Among the Sensex stocks, ONGC led losers. The stock fell over 2 per cent in early trade today. Reliance Infra, Hindalco and HDFC Bank were the other main losers in the pack, down more than 1.4 per cent each
However, Wipro, M&M and NTPC were the major gainers in the pack.
In US, the Dow Jones industrial average fell almost 175 points on Wednesday, erasing most of the previous day’s rally as a jump in government bond yields fanned concerns that higher interest rates will sap strength from the economy.
The stock market retreat also came, as General Motors said not enough bondholders agreed to swap their debt for company stock, meaning the automaker is almost certainly headed for bankruptcy protection.
In Asian markets, Japan’s Nikkei and South Korea’s Kospi rose more than 0.3 per cent each. Markets in China, Hong Kong and Taiwan were closed today.
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Bharti stock may stay trade volatile

May 272009
 

bharti-airtel Bharti Airtel has a very big salling pressure that shares eased on Wednesday, but the stock figured among the laggards on a day when the market rose
nearly 4%.

The stock closed at Rs 768.90, down Rs 1.50 over the previous close, and has shed nearly 11% in the past three trading sessions after declaring its intention to acquire South African telecom firm MTN.

Market observers expect the stock to remain weak in the near term on concerns that the stock-cum-cash acquisition will be a strain on the company’s financials. Any potential upside will depend on Bharti’s ability to implement its low-cost model in the markets where MTN operates.

In the next few days, Bharti scrip is likely to trade volatile with a downward bias due to concerns over short-term EPS dilution in case of a deal with MTN. This will continue till the deal is concluded,

Bharti’s plans to acquire a 49% stake in MTN effectively values MTN at a 30% premium to its market cap and implies at least 57% equity dilution for Bharti. “While the deal could help Bharti realise its long-cherished goal of having a global footprint, we believe the impact on medium-term earnings will hurt valuations,” said a report by ABN Amro.

ABN Amro has estimated that Bharti may need to raise additional debt of about $3 billion. Also, the equity capital will expand by 57% post the proposed fresh equity and GDR issue.

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Stocks open flat-to-positive

May 272009
 

bombay-stock1Equities opened flat-to-positive Thursday on the day of the settlement of the derivatives
contracts for May. Metals and realty posted
BSE

modest gains while banking stocks appeared soft. Secondline stocks were trading higher as well.

Bombay Stock Exchange’s Sensex was at 14134, up 24.52 points while National Stock Exchange’s Nifty was trading at 4283, higher by 7.3 points.

Asian stocks were mostly lower following a fall in US Treasuries fuelled by concerns about the economy. However, Japan and South Korean markets were little higher on a weaker yen and after the recent fall due to worries over North Korea’s nuclear and missile tests. Japan’s Nikkei 225 was down 0.1%, after a higher start, but South Korea’s Kospi Composite up 0.6%.

In the US, Stocks fell Wednesday as rising government bond yields led to concern that corporate and consumers may have to bear higher borrowing costs, checking economic recovery. Dow Jones industrial average fell 173.47 points, or 2.05 percent, to end at 8,300.02. Standard & Poor’s 500 Index was down 17.27 points, or 1.90 percent, at 893.06. Nasdaq Composite Index was down 19.35 points, or 1.11 percent, at 1,731.08.
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Sensex gains momentum

May 252009
 

images51 Key indices bounced back Monday after initial bout of profit booking as index heavyweights pared losses. Rally in sectoral indices was
led by realty and FMCG space while oil&gas space was a little subdued. Tier II, III stocks continued to outperform the benchmarks. Sudued global markets also kept the markets under check.

“If Nifty maintains above 4160 then for the May expiry there is a possibility that Nifty can retest 4600 levels. Markets are forming a base at every lower level before giving a fresh breakout, which is a very positive sign for the Indian market.

For intra-day, resistance for Nifty is placed at 4320, if Nifty maintains above 4320 in coming days then once again we could witness buying interest in the frontline stocks. A major weakness can be seen only if Nifty slips below 4160-4110 level,
At 12 pm, Bombay Stock Exchange’s Sensex was at 13970.68, up 83.53 points or 0.60 per cent. The 30-share index touched a high of 14028.06 and low of 13822.85.

National Stock Exchange’s Nifty was at 4249.60, up 11.10 points or 0.26 per cent. The broader index touched a high of 4269.60 and low of 4208.30.
For the day the strategy should be to go long in “at the money call options” in case the market starts trading above 4250/13990 (spot). On intraday basis the level of 4290 may act as an immediate hurdle for the market and above that 4335/14300. In case the market remains weak and dismisses 4130/13600 levels then long traders should start reducing trading long positions and fresh traders may look for at the money put options with a down side target 4050/4000(13450/13300). Sectors to watch on buying side are banks, capital goods and technology,
BSE Midcap Index was up 2.38 per cent and BSE Smallcap Index gained 4.18 per cent.

Amongst the sectoral indices, BSE Realty Index was up 2.44 per cent, BSE FMCG Index gained 2.08 per cent and BSE Healthcare Index moved 1.86 per cent higher. BSE Oil&gas Index was down 0.11 per cent.

Ranbaxy Laboratories (20.48%), Jaiprakash Associates (4.68%), DLF (4.67%), Tata Power (4.15%) and Sterlite Industries (3.36%) were amongst the Sensex gainers.

ONGC (-2.40%), State Bank of India (-0.94%), Sun Pharmaceuticals (-0.87%), Tata Motors (-0.78%) and NTPC (-0.72%) were amongst the major Sensex losers.
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Nifty turns choppy

May 252009
 

bombay-stock1 Key indices were moving in a narrow range with a negative bias on Monday while the broader markets were rallying on sustained buying activity. Traders booked profits in frontline stocks after gains in previous trade and as subdued global markets dented sentiments.

“US markets closed in the red and other Asian markets are down. Asian stock markets fell after North Korea said it conducted a nuclear test, erasing an earlier rally that was fuelled by gains in mining and shipping companies. Our markets rallied on Friday on the back of some buying interest after a 1000 point correction from the highs of 14,900. We believe that some correction in midcaps is likely from the current levels and we maintain that 3950 to 4000 on Nifty would be a good level to re-enter. For the day we expect the market to open down with some profit booking at higher levels,” said Religare Securities report.

At 11 am, National Stock Exchange’s Nifty was at 4235.90, down 2.6 points or 0.06 per cent. The index touched an intra-day low of 4208.30 and high of 4269.60.

Bombay Stock Exchange’s Sensex was at 13907.61, up 20.46 points or 0.15 per cent. The 30-share index hit an intra-day high of 14008.75 and low of 13822.85.

“Trend deciding level for the day is 4215 / 13812. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 4273 – 4308 / 14012 – 14137. However, if Nifty trades below 4215 / 13812 for the first half-an-hour of trade then it may correct up to 4180 / 13687,

BSE Midcap Index was up 2.09 per cent and BSE Smallcap Index moved 3.62 per cent higher.

Oil&gas and IT stocks kept the markets under pressure while realty and metals space showed some strength. Amongst the sectoral indices, BSE Realty Index was up 2.50 per cent and BSE Metal Index moved 1.66 per cent higher. BSE IT Index slipped 0.99 per cent and BSE Oil&gas Index was down 0.69 per cent.

ONGC (-3.54%), Suzlon Energy (-2.93%), National Aluminium (-2.25%), Cairn (-1.87%) and Infosys Technologies (-1.67%) were amongst the Nifty losers.

Ranbaxy Laboratories (7.22%), DLF (4.19%), Tata Power (4.16%), Reliance Communications (3.63%) and BPCL (3.27%) were the major Nifty gainers.

The new UPA government plans to cap profits of crude oil producers such as Oil & Natural Gas Corporation (ONGC), Oil India (OIL), Reliance Industries (RIL) and Cairn India as part of a transparent and sustainable subsidy-sharing system for the sector. The proposal to levy a special oil tax was part of the recommendations of the BK Chaturvedi Committee, appointed to look into oil pricing
as a replacement for the current subsidy-sharing plan that has been criticised for its lack of transparency.
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