Thursday, December 4, 2008

Market Overcame Previous Last Three Days Losses - Dec 04, 2008

The market extended gains on hopes that government may cut repo and reverse repo rates to pump in more liquidity into the system. Further, market is also anticipating that government might announce fiscal measures for the housing, auto and export sectors. In addition to this, market is also expecting around Rs.15,000 crore to support infrastructure sector as a whole.

Meanwhile, economic data continues to be weak in major economies of the world. Japan’s economic sentiments are weaker than before as it may be in a deeper recession than first thought. US data showed large job losses by US employers and a slumping service sector. Moreover, now it has been confirmed that US economy is in recession and this may last longer. China announced measures whereby the financial policy would be flexible to support the economy. China will make use of required reserves as well as interest rates and the exchange rate to ensure sufficient liquidity in the banking system.

On the sectoral front, traders on-loaded positions across the sectors except Consumer Durables. Auto stocks rose on hopes further rate cuts by the RBI to pump in liquidity in the hands of prospective buyers. Banking stocks trading higher on expectation of rate cut and rise in American depository receipt. Realty stocks back in action on hopes that government will unveil stimulus package for the sector as the sector was severely hit by the effect of financial crisis and high interest rates. The government is likely to relax the rules on external commercial borrowing (ECBs) to boost investment in the infrastructure and in the realty sector.

The Market breadth, indicating the overall strength of the market, was strong. On BSE, out of 1,968 shares traded so far, 1,242 shares advanced while 655 shares declined. Nearly 71 shares are unchanged.

At 1.30PM, the BSE Sensex is trading higher by 226.14 points at 8,973.58 and NSE Nifty is up by 54.69 points at 2,711.15.

The BSE Mid Cap is trading higher by 37.98 points at 2,868.57 and Small cap is trading up by 41.15 points at 3,306.25.

Gainers from the BSE Sensex Pack are Tata Motors by (7.73%) at Rs.143.50 along with Jaiprakash Associates by (6.08%) at Rs.66.25, Reliance Industries by (5.47%) at Rs.1,128.00, ICICI Bank by (5.46%) at Rs.353.20, BHEL by (5.41%) at Rs.1338.50 State Bank of India by (4.44) at Rs.1,146.20 and L&T by (4.25) at Rs.719.50 among others.

Losers from the BSE Sensex Pack are Hindalco In by (2.16%) at Rs.49.90 and Hindustan Unilever Limited by (0.09%) at Rs.232.00.

The BSE Realty index is higher by 78.87 points or (5.06%) at 1,638.56. Stocks trading higher are Housing Develop up by (12.25%) at Rs.87.50 along with Orbitco by (10.75%) at Rs.43.80, Indiabulls Real by (8.32%) at Rs.101.55 Unitech Ltd by (6.49%) at Rs.27.90 Parsvnath by (6.23%) at Rs.36.65 and Ansal Infra by (6.16%) at Rs.26.70.

The BSE CG index is higher by 227.93 points or (3.74%) at 6,314.51. Stocks trading up are Suzlon Energy by (7.71%) at Rs.40.50 along with Punj Lloyd by (5.73%) at Rs.151.20, BHEL by (5.41%) at Rs.1338.50 and Bharat Elect by (4.28%) at Rs.655.00.

The BSE CD index is lower by 9.95 points or (0.58%) at 1,703.83. Stocks trading lower are Titan Ind down by (2.06%) at Rs.846.70 and Blue Star by (1.14%) at Rs.134.50.

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