Wednesday, May 6, 2009

Market Pares Its Early Losses To Trade In Green - May 06, 2009

After a sluggish opening trade the markets are now heading towards the northward. Some late buying in PSU and energy stocks have lifted the benchmark indices and traders'' sentiments. Further, range bound volatility clutched the market due to mixed cues around the globe. However the traders are skeptical about US Banks ahead of the stress test results to be announced tommorow which will have greater impact on W-Street.

Further, Asian stocks were mixed and US market edged lower as energy stocks succumbed to the pressure on lower oil prices.

Signs of life from the battered consumer and housing sectors raise hope that the severe recession in the US may be bottoming out and that growth could turn positive later this year, Federal Reserve Board Chairman Ben Bernanke said on Tuesday May 4 2009.

Asia Pacific countries will need to implement forceful monetary and fiscal policies through next year as insurance against downside economic risks and for the region to come out of recession more quickly, the International Monetary Fund today, 6 May 2009, said.

"On the fiscal side, it will be important to sustain the stimulus injected in 2009 into next year, not least as an insurance policy against risks that have yet to reveal themselves," the IMF said in its latest Regional Economic Outlook for Asia and Pacific.

At the same time, fiscal credibility must be preserved by signaling that fiscal stimulus packages are extraordinary and will be unwound once a recovery is firmly established.

On the sectoral front, traders on-loaded positions across the sectors except IT, FMCG and Bankex indices. Realty stocks advanced on hopes lower rates will spur demand. Cement stocks rose on the back of robust dispatch in April 2009.

Banking stocks plunged on fear of rising defaults in a slowing economy. IT stocks shrunk on US government plans to scrap tax incentives that encourage American firms to ship jobs overseas.

The Market breadth, indicating the overall strength of the market, was strong. On BSE, out of 2,450 stocks traded so far, 1,677 shares advanced while 697 shares declined. Nearly 76 shares are unchanged.

The BSE Sensex is trading higher by 114.16 points at 12,245.24 and NSE Nifty is up by 46.75 points at 3,708.65.

The BSE Mid Cap is trading higher by 71.40 points at 3,790.28 and Small cap is trading up by 101.52 points at 4,264.10.

Major gainers from the BSE Sensex pack are Hindalco spurted 2.90% to Rs. 63.95 along with Reliance Communication by 2.64% to Rs. 243.30, ONGC by 2.61% to Rs. 908.40, Bharti Airtel by 2.11% to Rs. 768.15, Reliance Industries by 2.09% to Rs. 1,915.90, Ranbaxy Labs by 1.97% to Rs. 180.80, NTPC Ltd by 1.91% to Rs. 194.50, Larsen & Toubro by 1.86% to Rs. 997.00, Tata Power by 1.84% to Rs. 918.00, State bank of India by 1.70% to Rs. 1,366.55 and Reliance Infra by 1.68% to Rs. 806.30 among others.

Losers from the BSE Sensex Pack are TCS Ltd by 3.69% to Rs. 626.45 along with, Wipro Ltd plunged 2.39% to Rs. 359.60, Mahindra & Mahindra by 1.23% to Rs. 527.00 and ICICI Bank by 0.31% to Rs. 567.70 among others.

The BSE PSU is higher by 136.36 points or 2.24% at 6,218.06. Stocks trading in green are NMDC Ltd by 7.07% to Rs. 230.25, State Trading Corporation of India Ltd by 6.12% to Rs. 202.05, Central Bank by 5.03% to Rs. 48.05, Canara Bank by 4.64% to Rs. 220.00, RECL Ltd by 4.03% to Rs. 114.75, MTNL by 3.70% to Rs. 72.90 and Shipping Corporation of India by 3.60% to Rs. 93.50 among others.

Deep Industries galloped 7.18% to Rs. 61.95 ahead of its board meeting due later today, 6 May 2009, to consider preferential issue of shares.

Tata Tea advanced 0.97% to Rs. 700.20 after a block deal of one lakh shares was executed on NSE at Rs. 703 per share.

Suven Life Sciences zoomed 10% at Rs. 15.85 after the US drug regulator classified its bulk drug making unit in Andhra Pradesh as acceptable for manufacture of these products.

Mahindra & Mahindra plunged 1.23% to Rs. 527.00 after the company said workers at its plant in Nashik in Maharashtra began a strike which would temporarily affect production.

Kanoria Chemicals & Industries zoomed 19.22% at Rs. 22.95 after net profit increased phenomenally 148.4% to Rs 7.60 crore in Q4 March 2009 over Q4 March 2008.

ICICI Bank plunged 0.31% to Rs. 567.70 on profit selling after the stock rose almost 30% in the past three trading sessions.

Core Projects & Technologies surged 7.82% to Rs. 111.65 after net profit boosted 47.61% to Rs 24.37 crore in Q4 March 2009 over Q3 December 2008.

Cadila Healthcare advanced 3.31% to Rs. 331.00 on US nod for a new drug.

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