Thursday, March 26, 2009

Market Spurted On Confidence Building - March 26, 2009

The key benchmark indices nudged on fresh buying led by Capital Goods, Power, Bankex and FMCG stocks. Escalated buying by foreign funds, overnight successive rally in US Indices, Strong come back in Asian market blossomed sentiments of investors in D-street. The barometer index i.e., BSE Sensex zoomed and touched 9,867 mark and S&P CNX Nifty breached the psychological 3,000 mark.

Meanwhile, the fall in headline inflation to a memorable lower level i.e., 0.27%, has raised expectations of further easing of the monetary policy by RBI to pump in additional liquidity into the market.

On the sectoral front, all indices are trading in green. Banking stocks gained as RBI issued fresh norms for the adjustment of provisions for restructured accounts, standard assets, and non-performing assets (NPAs), a step that will support the financial health of banks. FMCG stocks grew as the investors are hopeful on better 4QFY09 results following reports of higher advance tax payment by these firms. IT stocks gained on hopes of a revival in the US economy that will spur domestic market. Oil&Gas stock gained as the government issued oil bonds worth Rs. 10,000 crore to oil marketing companies for under-recoveries on the sale of petroleum products at a controlled price during the current financial year.

The Market breadth, indicating the overall strength of the market, was strong. On BSE, out of 2,470 stocks traded so far, 1,382 shares advanced while 983 shares declined. Nearly 105 shares are unchanged.

At 1.30PM, the BSE Sensex is trading higher by 183.29 points at 9,851.19 and NSE Nifty is up by 49.00 points at 3,033.35.

The BSE Mid Cap is trading higher by 29.71 points at 2,870.88 and Small cap is trading up by 30.38 points at 3,195.84.

Major gainers from the BSE Sensex pack are Larsen & Toubro Ltd jumped 5.49% to Rs. 657.60 along with BHEL galloped by 4.49% to Rs. 1,550.00, Hindalco by 4.20% to Rs. 52.05, TCS by 3.82% to Rs. 546.00, ITC Ltd by 3.47% to Rs. 183.50, Tata Steel by 3.46% to Rs. 201.80, State Bank of India by 2.87% to Rs. 1,080.20, Housing Development Finance Co gained by 2.80% to Rs. 1,64200, Maruti Suzuki by 2.66% to Rs. 753.50 and among others.

Losers from the BSE Sensex Pack are DLF Ltd by 2.29% to Rs. 172.60 along with Ranbaxy Labs by 1.41% to Rs. 160.45.

GAIL India declined 0.92% to Rs. 231.65 on reports the company will de-merge its marketing division into a separate firm from April 1, 2009.

Indian Overseas Bank gained 5.03% to Rs. 48.05 as the biggest domestic institutional investors Life Insurance Corporation of India hiked its stake in the state-run bank.

HDFC gained 0.99% to Rs. 984.00 after it announced a 50 basis points reduction in its retail prime lending rate to 14% effective Wednesday 25 March 2009.

Unitech Ltd zoomed 044% to Rs. 34.05 on report that Morgan Stanley Mauritius purchased shares in the realty firm on Wednesday, March 25, 2009.

Havells India soared 14.95% to Rs. 147.60 on reports the company has set export target of $200 million from its unit in Rajasthan for the next five years.

Nucleus Software Exports surged 5.97% to Rs. 52.35 on bagging a new order for one of its software products.

Sobha Developers spurted 4.59% to Rs. 82.00 on reports the company is in talks with banks, financial institutions and private funds to restructure its debt.

Motherson Sumi Systems soared 4.31% to Rs. 62.90 after a bulk deal of 3.41 crore shares was struck on the counter at Rs 60.30 a share on the BSE in opening trade.

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