Thursday, December 18, 2008

Market All Hopes On Sensex Hovering Around 9,900 Mark - Dec 18, 2008

Market hopes on second stimulus package from government to pump economy from global recession. This package is expected to be in the favor of boost automobile, housing and metal sector. The new stimulus package could also cover monetary measures such as rate cut in CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio). Further, Inflation fell to the lowest since Mar’08 to 6.84% as demand slowed on account of global economic meltdown and most importantly the decline in crude oil cost.

Meanwhile, Oil prices dropped to its lowest in more than four years after OPEC (Organization of Petroleum Exporting Countries) decided to slash supply to fully offset slumping world energy demand.

On the sectoral front, the market is trading mix. Realty & Banking stocks gained on hopes government stimulus package. The reduction in rate will encourage lending. IT stocks extended gains on growth in American Depository Receipts (ADRs) and on recent reports that Obama’s team is considering plans to boost US economy that could be far larger than previous estimates and might cross USD 1 trillion over two years.

The Market breadth, indicating the overall strength of the market, was strong. On BSE, out of 2,303 stocks traded so far, 1,213 shares advanced while 1013 shares declined. Nearly 77 shares are unchanged.

At 1.30PM, the BSE Sensex is trading higher by 208.13 points at 9,923.43 and NSE Nifty is up by 64.84 points at 3,019.20.

The BSE Mid Cap is trading higher by 30.26 points at 3,166.44 and Small cap is trading up by 16.09 points at 3,694.65.

Gainers from the BSE Sensex Pack are Satyam Computer Services galloped 5.92% to Rs.167.40 along with Reliance Infra by (5.93%) at Rs.581.70, Wipro Ltd by (5.23%) at Rs.255.70, State Bank of India by (4.89%) at Rs.1,260.05, DLF by (4.86%) at Rs.265.50, BHEL by (4.41%) at Rs.1,399.10 and ICICI Bank by (4.31%) at Rs.450.40 among others.

Losers from the BSE Sensex Pack are Sterlite In lower by (2.84%) at Rs.263.50 along with Tata Steel by (2.67%) at Rs.213.00, Reliance Ind by (2.67%) at Rs.1,314.15 and ONGC by (1.99%) at Rs.702.25 among others.

The BSE Realty index is higher by 80.33 points or (3.77%) at 2,209.54. Stocks trading higher are Unitech Ltd up by (6.73%) at Rs.37.25, Indiabulls Real by (5.56%) at Rs.138.60, DLF by (4.86%) at Rs.265.50, Orbitco by (3.41%) at Rs.62.15 and Penland Ltd by (3.07%) at Rs.23.50 among others.

The BSE Oil&Gas index is lower by 62.10 points or (0.98%) at 5,275.88. Stocks trading lower are Cairn Ind by (7.70%) at Rs.153.50 along with Aban Offsho by (5.63%) at Rs.752.05, Reliance Ind by (2.67%) at Rs.1,314.15 and ONGC by (1.99%) at Rs.702.25 and Gail India by (1.69%) at Rs.206.00.

Tata Motors gained by 1.17% despite reports the company is undertaking a block closure of its commercial vehicle plant in Pune for three days from 29 December 2008, as high interest rates and unavailability of finance had depressed demand.

Satyam Computer Services galloped 5.92% to Rs.167.40 after its American depository surged on hopes the company may appease investors through a large dividend payout or a buyback.

Maytas Infra declined by 19.99% at Rs.310.65 after Satyam Computer Services called off plans to acquire the company.

Sun TV Network gained 3.31% to Rs.158.95, after the company said its movie division to produce Rajinikanth starred Endhiran, India''s biggest movie.

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