Tuesday, February 10, 2009

Indian Market Today Extended Its Previous Two Days Gains - Feb 10, 2009

The Indian market today extended its previous two days gains on hopes of incentives from interim budget on February 16 to boost the growth along with President Barack Obama’s massive stimulus plan of USD 829 bn economic recovery package, which will be vote on the bill today. Though, during the second half of session, market slipped below the dotted line on some selling pressure led by negative opening of European markets and lower US index futures. Investors from all over the world were cautious after president’s Barak Obama’s administration delayed the announcement of financial recovery plan. Finally, buying by the foreign investors lifted the sentiments.

The domestic market today opened slightly higher on the back of mixed cues form the markets all over the world. The US stock market on Monday closed on flat note as investors continue awaiting Treasury''s bank rescue plan as the bank rescue plan got delayed by 1 day. Further market continued to trade higher with a bit of volatility till after noon trade on significant buying. However, benchmark indices slipped into negative before final trading as weak European markets fueled the sentiments. At the end, market concluded the day on positive note on hopes that an interim budget will contain fiscal incentives to boost the momentum of the economy. The government will unveil an interim railway budget on February 13, 2009 followed by a mini general budget on February 16, 2009. BSE Sensex ended above 9,600 mark and NSE Nifty closed above 2,900 level. On the sectoral front, Reality, Capital Goods, Bank, Pharma, Auto and Power stocks remained supportive during the trading session. Midcap and Smallcap stocks also followed the same trend. However, Metal, Consumer Durables and FMCG stocks were out of favour as witnesses most of the selling from these baskets.

Among the Sensex pack 17 stocks ended in green territory and 13 in red. The market breadth indicating the overall health of the market remained strong as 1387 stocks closed in green while 1080 stocks closed in red and 109 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 63.58 points at 9,647.47 and NSE Nifty ended up by 14.6 points at 2,934.5. Broader market indices were strong as BSE Mid Caps and Small Caps ended with gains of 22.30 points and 9.81 points at 2,954.25 and 3,342.52 respectively. The BSE Sensex touched intraday high of 9,724.87 and intraday low of 9,510.50.

Gainers from the BSE Sensex pack are DLF Ltd (9.05%), BHEL (4.22%), L&T Ltd (3.40%), M&M Ltd (3.35%), RCom (3.16%), HDFC Bank (3.02%), Sun Pharma (2.53%) and Ranbaxy Lab (2.35%).

Losers from the BSE Sensex are Rel Infra (2.60%), Hindalco (1.96%), Tata Motors (1.84%), NTPC Ltd (1.50%) and ITC Ltd (1.42%).

On the global markets front, the Asian markets ended mixed as investors eyeing on the details of U.S. spending plans to revive the economy and lift its troubled financial industry. Shanghai Composite index, Hang Seng and Straits Times closed higher by 40.45, 111.58 and 20.95 points at 2,265.16, 13,880.64 and 1,703.29 respectively. However, Nikkei 225 and Seoul Composite index ended down by 23.09 and 3.82 points at 7,945.94 and 1,198.87 respectively.

European markets which opened after the Indian market are trading in red. In London FTSE 100 is trading lower by 62.23 points at 4,245.38 and in Frankfurt the DAX index is trading down by 86.84 points at 4,579.98.

The BSE Reality index ended higher by (6.58%) or 94.88 points at 1,536.13 advanced on hopes from the forthcoming interim budget. Main gainers are Unitech Ltd (9.45%), DLF Ltd (9.05%), Indiabull Real (6.22%), Anant Raj (5.00%) and Housing Development (4.63%).

The BSE Capital Goods index closed with gains of (3.14%) or 197.32 points at 6,484.30. Scrips that gained are Praj Indus (11.25%), BEML Ltd (5.78%), Gammon Indi (5.11%), BHEL (4.22%), Punj Lloyd (4.20%) and Aiaengineer (3.40%).

The BSE Bank index also ended higher by (1.16%) or 57.18 points at 4,972.69 on hopes that lower interest rates would accelerate lending growth. Gainers are HDFC Bank (3.02%), Kotak Bank (2.93%), Allahabad Bank (2.68%), IDBI Bank (2.27%) and Union Bank (2.22%).

The BSE Pharma index ended up by (1.14%) or 31.15 points to close at 2,756.31. Divi’s Lab (4.79%), Orchid Chem (4.50%), Sun Pharma (2.53%), Ranbaxy Lab (2.35%) and Lupin Ltd (2.30%) ended in positive territory.

The BSE Auto index advanced by (1%) or 24.96 points to close at 2,511.14 as India''s auto exports zoom at 63% in passenger car sales during April to January period of current financial year. M&M Ltd (3.35%), Maruti Suzuki (2.33%), Amtek Auto (1.81%), Bajaj Auto (1.45%), Exide Indus (1.24%) and Cromton Greaves (3.34%) ended in green.

The BSE Metal stocks under performed the benchmark indices as ended down by (1.43%) or 76.42 points at 5,251.46. Scrips that lost are Steel Authority (3.89%), Ispat Indus (2.84%), Hindustan Zinc (2.06%), Hindalco (1.96%) and Jindal Saw (1.78%).

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