Thursday, June 11, 2009

Market Drifted Downward Advance - June 11, 2009

After subdued opening, the key benchmark indices traded in narrow range with volatility on high end due to lack of news to drive the market direction. The recent rally was seen as foreign funds were aggressively buying in Indian stocks. However, most of the Asian stocks are also trading lower today contrary to the European markets which have mostly opened positive.

Meanwhile, the government is considering a proposal to restore the rate of service tax to its earlier level of 12% that was reduced to 10% in the third stimulus package in February 2009.

On the sectoral front, out of 13 BSE Indices, 4 were traded in green whereas 9 were in red. Oil stocks were mixed as oil climbed $72 a barrel on Thursday after data showed falling US crude and product inventories, adding to signs that oil demand may have bottomed out.

Metal stock rose on emerging domestic demand. Banking stocks plunged as surging bond yields will result in diminution in value of their bond portfolio. IT stocks declined on worries higher borrowing costs and oil prices will threaten a recovery of the US economy.

Telecom stocks advanced on hopes government may speed up the auction process for the 3G WiMax services.

The Market breadth, indicating the overall strength of the market, was weak. On BSE, out of 2,671 stocks traded so far, 780 shares advanced while 1,830 shares declined. Nearly 61 shares are unchanged.

The BSE Sensex is trading lower by 119.50 points at 15,347.31 and NSE Nifty is down by 34.09 points at 4,621.15.

The BSE Mid Cap is trading lower by 31.09 points at 5,328.41 and Small cap is trading down by 88.67 points at 6,117.75.

Major gainers from the BSE Sensex pack are Mahindra & Mahindra Limited 4.40% to Rs. 801.65, along with Hindalco Industries Limited spurted 4.20% to Rs. 98.00, HDFC Bank Limited spurted 2.80% to Rs. 1,536.00, Sterlite Industries Limited 2.46%% to Rs. 680.00, Tata Steel Limited by 2.09% to Rs. 448.70, Bharti Airtel Limited by 1.90% to Rs. 850.95 and NTPC Limited 1.66% to Rs. 223.15 among others.

Losers from the BSE Sensex Pack are BHEL plunged 4.45% to Rs. 2,248.00 along with ACC Limited fell 3.79% to Rs. 863.30, Jaiprakash Associates 3.78% to Rs. 215.30, State Bank of India by 3.78% to Rs. 1,690.40, Infosys Technologies Limited 3.67% to Rs. 1,737.00, ONGC by 3.03% to Rs. 1,129.35, Reliance Infra by 2.77% to Rs. 1,184.40 and Wipro Limited by 2.73% to Rs. 420.90 among others.

The BSE IT is lower by 105.06 points or 3.10% at 3,287.86. Stocks trading in red are Finance Tech Limited plunged 3.93% to Rs. 1,407.00, Rolta India Limited 3.71% to Rs. 139.00, Infosys Technologies Limited 3.67% to Rs. 1,737.00, Oracle Finance Limited 3.61%% to Rs. 1,290.00 and Patni Computers Limited by 3.06% to Rs. 251.95.

Tata Tea Limited declined 1.96% to Rs. 799.00 after consolidated net profit dipped 54.48% to Rs. 700.55 crore despite 12.14% rise in total income to Rs. 4,907.30 crore in the year ended March 2009 over the year ended March 2008

Lanco Infratech Limited plunged 4.47% to Rs. 423.75 on profit taking after the stock jumped nearly 24% in the preceding two trading sessions.

ING Vysya Bank Limited slides 3.06% to Rs. 177.15 after the bank termed media reports of ING looking to sell out of ING Vysya Bank as speculative.

Gitanjali Gems Limited surged 3.50% to Rs 133.25 after the company''s unit decided to set up a joint venture in India in association with Damas LLC for retail trading

Mercator Lines Limited surged 2.48% to Rs. 68.15 on reports it is set to acquire three gearless post-Panamax bulk carriers totalling 2.77 lakh dead-weight tonnage on a charter basis.

Larsen & Toubro Limited declined 0.48% to Rs. 1625.80 on reports it is selling 8.3% stake in UltraTech Cement today, 11 June 2009 to financial investors for around Rs. 757 crore.

Monsanto India Limited deteriorated 7.81% to Rs. 1,775.25 on reporting a net loss of Rs. 26.74 crore in Q4 March 2009 as compared to net profit of Rs 11.62 crore in Q4 March 2008.

Cairn India Limited declined 0.14% to Rs. 258.30 as crude oil rose 1.02% or 73 cents to $72.06 per barrel on Asian electronic trading on Thursday, 11 June 2009.

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