Thursday, May 28, 2009

Market Trading Calm Resting On Explosive Assembly - May 28, 2009

After a subdued opening the volatility seems to have caught the day''s trade ahead of F&O expiry today. The mixed global cues are also adding fuel to fire the volatility. In a major concern, the global rating agency Moody''s Investors Service said India''s credit rating may come under pressure if the government is not bale to restrict its widening budget deficit.

On the sectoral front, out of 13 Indices, majority of the Indices were trading in green while Banking, Health Care and Consumer durables were under pressure. Metal stocks traded mixed as copper dropped around 2% on the London Metal Exchange overnight.

Capital Goods stocks advanced on expectations of increased infrastructure spending by the UPA government to boost growth. Healthcare stocks gained on hopes UPA government will give primary importance to healthcare segment and health of citizens.

Realty stocks continued its gains on expectations that stability at the Centre will attract more FDI into the sector which in turn will boost growth.

The Market breadth, indicating the overall strength of the market, was strong. On BSE, out of 2,703 stocks traded so far, 1,717 shares advanced while 927 shares declined. Nearly 59 shares are unchanged.

The BSE Sensex is trading higher by 189.20 points at 14,308 and NSE Nifty is up by 53.39 points at 4,329.45.

The BSE Mid Cap is trading higher by 44.88 points at 4,942.25 and Small cap is trading up by 33.06 points at 5,830.80.

Major gainers from the BSE Sensex pack are Mahindra & Mahindra Limited spurted 4.59% to Rs. 654.00 along with Larsen & Toubro Limited advanced 3.88% to Rs. 1,362.30, Tata Steel Limited by 3.13% to Rs. 384.95, Sterlite Industries by 3.70% to Rs. 613.00, Bharti Airtel Limited spurted 2.94% to Rs. 791.50, ACC Limited by 2.60% to Rs. 727.50, TCS Limited by 2.39% to Rs. 660.45, Maruti Suzuki Limited by 2.35% to Rs. 996.50 and Reliance Industries Limited 2.29% to Rs. 2,237.20 among others.

Losers from the BSE Sensex Pack are ACC Limited plunged 1.68% to Rs. 698.30 along with Tata Motors Limited fell 3.87% to Rs. 330.25, Reliance Infra Limited by 2.65% to Rs. 1,254.00, ICICI Bank Limited slipped 0.55% to Rs. 706.65 and Jaiprakash Associates Limited by 0.34% to Rs. 189.65 among others.

The BSE Metals is higher by 317.56 points or 3.09% at 10,584.35. Stocks trading in green are NMDC Limited spurted 8.57% to Rs. 416.85, JSW Steel Limited surged 7.96% to Rs. 557.00, Steel Authority of India by 6.58% to Rs. 164.35, Jai Corp 4.99%% to Rs. 261.10 and Sterlite Industries by 3.70% to Rs. 613.00.

Bharat Heavy Electricals Limited rose 0.71% to Rs. 2,093.00, on profit taking after a recent sharp surge.

LIC Housing Finance Limited surged 7.30% to Rs. 513.60 after the company said its board will meet on 1 June 2009 to consider issuing shares on a preferential basis and qualified institutional placement of shares.

Torrent Power Limited fell nearly 0.11% to Rs. 142.10 after a block deal of five lakh shares was executed on NSE at Rs 144 per share.

Bharti Airtel Limited spurted 2.94% to Rs. 791.50 on value buying after the stock fell 10.36% in the preceding three trading sessions.

Religare Enterprises zoomed 2.28% to Rs. 464.90 on reports it is in talks with Swiss Re, the world''s second-largest re-insurer, to form a joint venture health insurance company in India.

Larsen & Toubro Limited advanced 3.88% to Rs. 1,362.30 ahead of its Q4 March 2009 results later today, 28 May 2009

Jindal Steel & Power Limited rose 0.25% to Rs. 2,086.20 after consolidated net profit jumped 140.65% to Rs 3007.15 crore in the year ended March 2009 over the year ended March 2008.

Novartis India Limited jumped 14.19% to Rs. 444.90 after its Swiss parent raised open offer price to Rs. 450 a share from Rs. 351 a share earlier.

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