Tuesday, July 28, 2009

Market Revolve By The Side Of The Base Line - July 28, 2009

Market after jittery opening, the key benchmark indices traded in a narrow range with negative bias. Some relief came from RBI, when it kept key policy rates unchanged at its quarterly monetary policy review announced today. The central bank said it will actively control liquidity to avoid government borrowing crowding out private credit demand.

Meanwhile, the government has allowed some relief to housing projects with a tax holiday under section 80 IB (10) of the Income Tax Act on profits from projects approved between 1 April 2007 and 31 March 2008.

The benefit comes with a condition that the projects are completed on or before 31 March 2012. The government has also extended tax holiday to developers of industrial parks by two years until March 2011.

The RBI, in its monetary policy, has kept the key rates unchanged and increased the inflation forecast to 5% by end March 2010 as against earlier 4%.

The Repo Rate, at which the central bank lends cash to banks, stays at 4.75%, which is its lowest in 9 years, and the Reverse Repo rate, at which it absorbs surplus cash from the banking system, stays at 3.25%. The statutory liquidity ratio (SLR) was also kept unchanged at 24%.

On the sectoral front, out of 13 Indices, 9 indices advanced whereas 4 indices declined. Banking stocks plunged after RBI revised its wholesales price inflation forecast to 5% by end March 2010 as against 4% projected earlier.

Auto stocks were mixed. IT stocks weaken on profit booking. Realty stocks toped the indices on fresh government announcement of tax benefits.

The Market breadth, indicating the overall strength of the market, was strong. On BSE, out of 2,583 stocks traded so far, 1,602 shares advanced while 898 shares declined. Nearly 83 shares are unchanged.

The BSE Sensex is trading higher by 10.44 points at 15,385.49 whereas NSE Nifty is down by 1.44 points at 4,570.85.

The BSE Mid Cap is trading higher by 66.72 points at 5,536.22 and Small cap is trading up by 113.26 points at 6,256.00.

Major gainers from the BSE Sensex pack are Tata Motors Limited surged 8.17% to Rs. 405.60 along with DLF Limited 3.49% to Rs. 426.50, Reliance Communication Limited 3.07% to Rs. 290.75, Bharti Airtel Limited improved 2.14% to Rs. 432.50, Mahindra & Mahindra Limited improved 2.13% to Rs. 833.50, Tata Power Limited gained 1.78% to Rs. 1,259.10, NTPC Limited by 1.49% to Rs. 217.65, Reliance Infra gained 1.42% to Rs. 1,181.00, Sun Pharmaceuticals Limited by 1.23% to Rs. 1,260.00 and ACC Limited by 1.16% to Rs. 858.00 among others.

Major losers from the BSE Sensex Pack are ICICI Bank Limited plunged 2.96% to Rs. 735.15, Infosys technologies Limited by 1.99% to Rs. 1985.00, State Bank of India Limited by 1.49% to Rs. 1,684.00, Reliance Industries Limited by 1.46% to Rs. 1,910.20, HDFC Bank Limited by 1.37% to Rs. 1,415.00, Matuti Suzuki by 0.83% to Rs. 1358.60 and Tata Steel Limited by 0.62% to Rs. 454.50.

The BSE Realty is higher by 160.73 points or 4.11% at 4,069.44. Stocks gained are Mahindra LifeScience Limited 7.78% to Rs. 300.00, Unitech Limited 5.80% to Rs. 93.10, Housing Development 4.72% to Rs. 288.40, Phoenix Mills Limited 4.07% to Rs. 118.80, Anant Raj Industries Limited by 3.79% to Rs. 130.00, DLF Limited by 3.49% to Rs. 426.50 and Ansal Infrastructure 3.05% to Rs. 65.90 among others.

Rashtriya Chemicals & Fertilizers Limited spurted 7.77% to Rs. 70.70 after net profit increased phenomenally 65.5% to Rs. 31.55 crore in Q1 June 2009 as against Q1 June 2008.

Tata Motors Limited jumped 8.17% to Rs. 405.60 after net profit increased significantly 57.5% to Rs 513.76 crore whereas 7.8% decline in sales to Rs. 6,350.20 crore in Q1 June 2009 as against Q1 June 2008.

Escorts Limited zoomed 4.44% to Rs. 70.50 after net profit increased in triple digit 138.7% to Rs 22.22 crore in Q3 June 2009 over Q3 June 2008.

NTPC Limited gained 1.49% to Rs. 217.65 after net profit increased extensively 27.1% to Rs. 2,193.62 crore on a 25.8% increase in sales to Rs. 12,002.68 crore in Q1 June 2009 as against Q1 June 2008.

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