Tuesday, June 2, 2009

Market Down The Profit Taking Nudged - June 02, 2009

After a spectacular opening, the key benchmark indices plummeted on profit taking, which pulled the market off the higher levels after an initial surge that took the broader market to stronger psychological levels. Worries that excess of stock sales will absorb liquidity in the secondary market also weighed on the sentiment.

Mixed movement in Asian Stocks and lower US index future, also impacted the sentiments of the investors which cashed in on strong gains.

On the sectoral front, out of 13 Indices, only 2 were trading in green while 11 were in red. Banking stocks slides as rising bond yields will result in diminution in the value of bank’s bond portfolio.

Realty stocks fell on profit booking after a recent solid surge triggered by expectations that stability at the Centre will attract more money from foreign investors into the sector which in turn will boost growth.

The Market breadth, indicating the overall strength of the market, was weak. On BSE, out of 2,747 stocks traded so far, 1,268 shares advanced while 1,418 shares declined. Nearly 61 shares are unchanged.

The BSE Sensex is trading lower by 145.10 points at 14,695.53 and NSE Nifty is down by 51.44 points at 4,478.45.

The BSE Mid Cap is trading down by 38.69 points at 5,165.51 and Small cap is trading lower by 39.57 points at 6,157.20.

Losers from the BSE Sensex Pack are Ranbaxy Labs Limited plunged 6.30% to Rs. 257.30 along with Reliance Infra Limited fell 5.45% to Rs. 1,230.00, Jaiprakas Associates Limited by 4.09% to Rs. 211.20, ACC Limited by 3.85 to Rs. 801.00 and Hindalco In by 3.48% to Rs. 84.70 among others.

Major gainers from the BSE Sensex pack are Mahindra & Mahindra Limited zoomed 2.06% to Rs. 725.10 along with Grasim Industries Limited spurted 1.37% to Rs. 2,205.00, Tata Steel Limited by 1.34% to Rs. 443.80, Sterlite Industries Limited by 1.02% to Rs. 671.50, Sun Pharmaceuticals Limited spurted 0.78% to Rs. 1,228.00, TCS Limited by 0.49% to Rs. 701.50, Tata Motors Limited by 0.30% to Rs. 338.95, Housing Development Finance Co by 0.28% to Rs. 2,305.00 and Hindustan Uniliver Limited 0.09% to Rs. 233.85 among others.

The BSE Bank is lower by 224.15 points or 2.74% at 8,353.40. Stocks trading in red are Bank of India Limited Limited fell 7.57% to Rs. 321.30, Indusind Bank Limited 6.74% to Rs. 72.60, Indian Overseas by 6.22% to Rs. 88.95, Kotak Mahindra Bank 5.27%% to Rs. 644.00 and Axis Bank Limited by 5.05% to Rs. 704.80.

Cipla Limited advanced 1.01% to Rs. 220.95, after a block deal of 5 lakh shares was executed on BSE at Rs 220 per share.

JMC Projects India Limited jumped 5% at Rs. 153.70 after net profit jumped 70.32% to Rs 16.30 crore in Q4 March 2009 over Q4 March 2008.

Pantaloon Retail (India) Limited advanced 1.81% to Rs. 335.00 on reports the company is close to selling a stake in a unit to France''s Carrefour.

KGN Industries Limited zoomed 5% at Rs. 395.25 after the company said its board will meet on 6 June 2009 to consider a 10-for-1 stock split.

Hero Honda Motors Limited gained 2.22% to Rs. 1,397.00 after vehicle sales rose 22.5% to 3.82 lakh units in May 2009 over May 2008.

Voltas Limited advanced 8.59% to Rs. 128.35 on the back of of solid Q4 March 2009 earnings.

Shree Cement Limited spurted 2.00% to Rs. 1,061.00 after cement shipments surged 32.19% to Rs 7.35 lakh tons in May 2009 over May 2008.

Cairn India Limited surged 1.07% to Rs. 263.80 after Goldman Sachs raised its 12-month target price to Rs 290 from Rs 240 earlier.

Ambuja Cements Limited galloped 3.32% to Rs. 101.25 after cement shipments rose 8.26% to 16.38 lakh tons in May 2009 over May 2008.

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