Monday, February 9, 2009

Market Bolstered By CSO’s Growth Forecast Of GDP - Feb 9, 2009

Expectations as interim budget will strengthen sagging growth and US stimulus package will be approved, supported the momentum of the market. Further, the ruling government will unveil an interim railway budget on February 13, 2009 followed by a mini general budget on February 16, 2009. It is expected that the government will take measures to boost growth, especially in sectors where jobs are at stake. Hopes of a recovery in Chinese economy added fuel to momentum.

On the sectoral front, traders on-loaded position across sectors. Metal stocks rose on speculation that the stimulus packages proposed by the governments of the US and China will boost demand for commodities. Banking stocks advanced on expectation that the interim budget will provide Rs. 2,000 crore for bank recapitalization and also on hopes that lower interest rates will boost lending growth. IT stocks rose on hopes for US stimulus measures to take action sooner.

The Market breadth, indicating the overall strength of the market, was strong. On BSE, out of 2,308 stocks traded so far, 1,357 shares advanced while 868 shares declined. Nearly 83 shares are unchanged.

At 1.30PM, the BSE Sensex is trading higher by 133.69 points at 9,434.55 and NSE Nifty is up by 34.05 points at 2,877.15.

The BSE Mid Cap is trading higher by 29.96 points at 2,912.77 and Small cap is trading up by 45.91 points at 3,325.15.

Gainers from the BSE Sensex pack are Sterlite Ind advanced by 5.04% to Rs. 278.10 along with Jaiprakash Associates by 4.93% to Rs. 72.35, Tata Steel by 4.32% to Rs. 194.20, Housing Development Finance Corp by 3.92% to Rs. 1,468.10, Hindalco Ind by 3.29% to Rs. 45.55, ONGC by 2.96% to Rs. 701.20, and Reliance Infra by 2.34% to Rs. 553.30 among others.

Losers from the BSE Sensex Pack are Wipro Ltd by 1.00% to Rs. 221.70 along with ITC Ltd by 0.82% to Rs. 181.00, Mahindra & Mahindra by 0.60% to Rs. 272.50 and Grasim Indus by 0.31% to Rs. 1,409.00.

The BSE Metal index is higher by 181.19 points or 3.55% at 5,283.83. Stocks trading in green are JSW Steel advanced by 6.67% to Rs. 224.60, NMDC by 6.44% to Rs. 169.30, Welspun Gujarat by 5.65% to Rs. 69.15 and Sterlite Ind by 5.04% to Rs. 278.10 among others.

Reliance Industries Ltd rose 1.83% to Rs. 1,368.15 on reports the petroleum ministry is seeking re-introduction of the seven-year income-tax holiday for natural gas producers in an attempt to make the next round of NELP (New Exploration and Licensing Policy) bidding attractive.

Dr Reddy''s Laboratories gained by 0.78% to Rs. 462.90, after the company said its promoters have pledged more than one crore shares or 6.19% stake.

Tata Steel rose 5.08% to Rs. 195.60 after the company said its steel sales rose 26% to 5,11,000 tons in January 2009 over January 2008.

Piramal Healthcare rose 1.67% to Rs. 197.65 on reports British pharma company GlaxoSmithKline Plc is in discussions to acquire the company for around $1.5 billion.

Nagarjuna Construction Company jumped 5.71% to Rs. 49.10, on bagging orders aggregating to Rs. 712 crore.

Subex Ltd advanced by 4.92% to Rs. 27.70 as it entered into partnership with Swisscom, to co-operate in the field of management in order to improve fraud protection for next generation fraud management.

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