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(Last Updated: 17/9/2010 16:30)
Sensex:
Equity benchmarks staged stunning performance for the second consecutive week barring Thursday's marginal sell-off, led by strong inflow of funds from foreign institutional investors (FIIs) - the Sensex added 1373.32 points and the Nifty 405.55 points.
FIIs were net buyers to the tune of Rs 11,500 crore in the month of September till September 16, including previous day's provisional figure though domestic institutional investors were net sellers of more than Rs 3,500 crore.
Reliance Industries was the frontrunner today; surged 2.7%. The BSE Oil & Gas index rose 1.78%; GAIL, BPCL and Cairn India were up 1.4-2%.
Even global cues were quite supportive; European markets like France's CAC, Germany's DAX and Britain's FTSE were trading 0.9% higher, at the time of closing Indian equities. US index futures namely Dow Jones and Nasdaq futures were up 0.7-0.9%. Asian markets like Nikkei, Hang Seng and Jakarta rose 1.2% each; Straits Times, Kospi and Taiwan gained 0.3-0.9% while Shanghai declined just 0.15%.
All sectoral indices traded in green on Friday; telecom, healthcare, metal, oil & gas, FMCG and select capital goods were leading sectors. On the flip side, HDFC, Wipro, BHEL, ONGC, Maruti and SAIL witnessed selling pressure.
Equity benchmarks closed at 32-month high - the 30-share BSE Sensex closed at 19,594.75, up 177.26 points or 0.91% and the 50-share NSE Nifty rose 56.25 points or 0.97% to settle at 5,884.95. In two weeks, both indices gained 1373.32 points and 405.55, respectively, led by financial, oil & gas, metal, realty and technology companies' shares.
Sensex, Nifty rally over 4.2% this week
Equity benchmarks closed at 32-month high this week and the Nifty touched a high of Rs 5901.65. The 30-share BSE Sensex closed at 19,594.75, up 795.09 points or 4.23% and the 50-share NSE Nifty rose 244.9 points or 4.34% to settle at 5,884.95.
The BSE Banked surged 6% and BSE Oil & Gas Index shot up 5.5%. The BSE Realty Index was up 4.5% and IT Index up 3.2%.
Financial was the leading sector this week; Kotak Mahindra Bank and Axis Bank jumped 10% each. HDFC was up 8.5%. HDFC Bank, ICICI Bank and PNB gained 5.5-7%.
Among other frontliners, DLF, ABB and Unitech rallied 7-9%. Reliance Industries, Suzlon and TCS went up 5-6.7%.
The Nifty Junior Index rose 2.5% and CNX Midcap Index was up 1%.
In midcap space, Delta Corp surged 36% as the company will consider fund raising of Rs 275 crore via preferential allotment in a board meeting on September 20.
Ispat was up 11%; Stemcor will acquire upto 10% in company via preferential allotment. Orchid rose 9%; CNBC-TV18 learns that the company is set to sell balance stake in Orchid Chemical.
In smallcap space, Archies jumped 27% and Tourism Finance gained 18%.
Nifty:
NSE Nifty surged further on the back of support from heavyweights and was inching towards 5900 level, which had tested on Thursday in an intraday trade. Oil & gas, technology, telecom, metal and healthcare were leading sectors.
The Sensex was trading at 19626, up 209 points and the Nifty was at 5894, up 66 points. The Nifty September futures were trading at 11 points premium.
Heavyweight Reliance Industries rose 1.75% and ONGC up 0.9%. Tata Steel, Jindal Steel, Sterlite and Hindalco from metal segment gained 2-3%; SAIL was up 0.9%.
TCS from technology pack moved up 2.2% and Infosys was up 1.2%. Wipro and HCL Tech were up 0.7% each. Bharti Airtel from telecom space rallied 2.3% and Reliance Communications was up 1.9%. Among other heavyweights L&T, ICICI Bank and ITC gained 0.8-1.2%.
Delta Corp (witnessed multiple block deals ahead of board meeting for fund raising of Rs 275 crore via preferential allotment), Polyplex Corp, SBI, Tata Steel, Midfield Inds, ICICI Bank, Reliance Inds and DLF were the most active shares on exchanges.
Top percentage gainers - Coromandel Engg, Advani Hotels and Delta Corp shot up 20% each. Windsor, Vishnu Chemical, Bang Overseas and Camlin gained 13.6-15.6%.
In midcap space, Texmaco, Pantaloon Retail, Corporation Bank, Prism Cement and Edelweiss Capital rose 5-7% while Berger Paints, IBN18 Broadcast, State Bank of Mysore, GMDC and Den Networks were down 1-2.7%.
In smallcap space, Hinduja Foundries, Sagar Cement, Gujarat Amb Exports and Tourism Finance rallied 7-11% while Oscar Invest, Tatia Global, EIH Associated Hotel, Atco Corp and Maharashtra Polybutenes lost 3-5%.
Oil & gas, technology, metal, realty and telecom were the major gainers. However, HDFC and Maruti were the only losers; SBI wiped out all its gains, which was flat in trade.
The Sensex was trading at 19570, up 152 points and the Nifty was at 5877, up 48 points. The broader indices were outperforming benchmarks; rallied 1% each as about 2178 shares advanced while 1037 shares declined on BSE. Nearly 177 shares were unchanged.
On the sectoral front, the BSE Metal, Realty, TECk, Auto and IT indices gained 1% each. Oil & Gas, Capital Goods, FMCG, Bank, Healthcare and Power indices were up 0.5-0.9%.
Top gainers:
Ambuja Cements was trading at Rs 143.45, up 5.25%; ACC was at Rs 996.85, up 3.23%; Jaiprakash Associates was at Rs 124.90, up 2.34%; Bharti Airtel was at Rs 355.55, up 2.30%; Tata Steel was at Rs 606.85, up 1.93% and Reliance Communications was at Rs 160.70, up 1.64%.
In midcap space, Texmaco, Prism Cement, India Cements, Edelweiss Capital and Infotech Enterprises rallied 5-8.6% while Berger Paints, IBN18 Broadcast, Dish TV India, State Bank of Mysore and GMDC fell 1.3-3%.
In smallcap space, Delta Corp surged 19.97% as it witnessed multiple block deals today. Hinduja Foundries, Sagar Cement, Andhra Cement and Tourism Finance went up 6.5-11%. However, EIH Associated Hotel, Oscar Invest, Maharashtra Polybutenes, Tatia Global and Astral Poly lost 2.5-4.5%.
Rupee rises to 3-month high; more gains seen
The rupee scaled its highest level in nearly three months on Friday boosted by gains in the domestic sharemarket which raised hopes for more capital inflows, a day after the Reserve Bank of India (RBI) raised key interest rates. The partially convertible rupee closed at 45.8350/8450 per dollar, after touching 45.81, its highest since June 21 and 0.7 percent above its 46.14/15 close on Thursday. This is the rupee's biggest single-day gain since July 27. On the week the unit strengthened 1.4%, its biggest weekly gain in three months. Foreign fund inflows support local stocks, the gains in which positively impact the local unit. Brisk foreign fund inflows helped Indian shares post their best weekly gain in 10 months to close 0.9% higher on Friday, led by Reliance Industries, having tested new 32-month highs each day of the week. So far in 2010, foreign funds have bought shares worth USD 15.4 billion, adding to last year's record USD 17.5 billion purchases. The RBI on Thursday hiked key rates more than expected to fight inflation and signalled that a tightening cycle that has seen five rate hikes this year may be nearing an end.
Still, India has one or two interest rate increases in store for the rest of the fiscal year that ends in March, a Reuters poll conducted after the policy showed. Dealers said the dollar's losses versus major currencies also aided rupee gains. The index of the dollar against six majors was down 0.2 percent. One-month offshore non-deliverable forward contracts were quoted at 45.97, weaker than the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX closed at 45.9125 and 45.91 respectively, with the total traded volume on the two exchanges at about USD 7.4 billion.
Nifty volatile; shrugs off repo, reverse repo rate hikes:
NSE Nifty was trading amidst extreme volatility with negative bias. It slipped further post RBI's credit policy but did not fall much because benchmarks already discounted a hike in policy rates.
The Reserve Bank of India (RBI) has increased repo rate (rate at which banks borrow from RBI for short-term) by 25 bps to 6% and reverse repo rate (rate at which RBI borrows money from banks) by 50 bps to 5%. The Central Bank said inflation remained a dominant concern
The Sensex was trading at 19395, down 107 points and the Nifty was at 5823, down 37 points. However, the Nifty September futures were trading at 8 points premium.
Technology, realty, telecom, capital goods, metal, power, oil & gas exploration and select financial companies' shares were witnessing selling pressure. However, auto, healthcare and FMCG companies' shares along with SBI (down 1.5%), Cairn and ACC were on buyers' radar, which capped losses.
SBI was the top traded counter on exchanges followed by Atlanta, Tata Steel, ICICI Bank, Aban Offshore, Tata Motors and Reliance Industries.
Top percentage gainers:
Bang Overseas and Kinetic Engg locked at 20% upper circuit. Texmo Pipes and Eurotex gained over 15%.
In midcap space, Alstom Projects, Indraprastha Gas, Nirma, Alfa Laval and Ruchi Soya were up 3.7-8.7% while
Shriram City, Shree Global, Jagran Prakashan, HT Media and Texmaco lost 3-5.6%.
In smallcap space, Cosmo Films rose 13%. Madhucon Projects, Shristi Infra, Shriram EPC and Oscar Invest went up 6-9%. However, Halonix, Maharashtra Ele, CCL Products, Hatsun Agro and Henkel India slipped 3.5-5%.
RBI hikes repo by 25 bps; reverse repo by 50 bps
he Reserve Bank of India (RBI), in its credit policy announcement today, hiked repo by 25 basis points (bps) and the reverse repo by 50 basis points (bps). The repo now stands at 6% while reverse repo stands at 5%.
In its statement, the RBI said that inflation remained a dominant concern.
A poll conducted earlier in the day had indicated that most people had expected a 25 bps hike on the reverse repo rate. In fact, 60% expected a 25 bps hike in repo rate and 40% expected the rate to remain unchanged. The 50 bps reverse repo hike may have come in as a surprise. 90% of experts polled had expected a 25 bps hike in the reverse repo rate and 10% expected RBI to keep the rate unchanged.
As soon as the announcement was made, the benchmark indices remained largely unchanged.
The RBI has taken an aggressive stance giving higher priority to fight inflation against robust growth and rising asset prices. This tough stance despite maintaining tight liquidity and with repo rate remaining operative is indeed a hawkish stance. The 10-year yield would now trade 7.93-8.03 percent range with bias towards overshoot into 8.05-8.10.
Background to rate hike
- Official data this week showed wholesale price index rose an annual 8.5 percent in August on new base year. Under the old base year it was 9.5 percent, compared with Reuters estimate of 9.6 percent.
- The government also revised July inflation to 9.8 percent from the earlier number of 9.97 percent.
- Data showed industrial output accelerating much faster than expected in July at 13.8 percent from a year ago on surging capital goods production.
- The central bank had raised key rates four times between mid-March and July.
Asian market:
China's Shanghai Composite was up 0.16% or 4.08 points at 2,606.55.
Hong Kong's Hang Seng added 0.21% or 45.97 points at 21,737.42.
Japan's Nikkei rose 0.72% or 68.35 points at 9,577.85.
Singapore's Straits Times was up 0.31% or 9.38 points at 3,076.49.
South Korea's Seoul Composite was up 0.15% or 2.65 points at 1,814.50.
Taiwan's Taiwan Weighted advanced 0.68% or 55.39 poinst at 8,155.14.
Stock in News:
Delta Corp jumped 34% in 3 days records fresh 52 wk high
Idea Cellular in talks with 2 Cos to sell upto 26% stake
Reliance Communications gains 5.5%
Ajay Asset Mgmt buys shares of Texmo Pipes
Jmp Securities buys 41.31 lk shrs of Resurgere Mines
Jmp Securities sells 7.27 lk shrs of Pacific Cotspin
Bajaj Hind, Balrampur Chini to export raw sugar; stks up
Bharti Airtel selects IBM for mobile ops in Africa; stk up
Ambuja Cements among major gainers
Local Market News:
Rupee rises to 3-month high; more gains seen
Gold at record peaks; silver eyes highest in 30 yrs
Sensex soars 1373pts in 2 weeks; financials, oil & gas lead
Sensex, Nifty rally over 4.2% this week
Sensex remains strong; RIL, Bharti lead
Gold at all-time high
Sensex surges; Ranbaxy, ACC, RIL, ICICI Bk, ABB shine
Gold hits new high on economy worries, weak dollar
Nifty inches towards 5900; heavyweights support
Rupee strengthens to nearly 3-month peak
World stocks lower as gold jumps to record
Silver hits new 2-1/2-yr high at $20.84 an ounce
Sensex rallies above 19500; all sectors up
Crude oil to extend downward rally: Nirmal Bang
Foreign inflows will support rupee to trade higher: Karvy
Global Market News:
Oracle lifts Nasdaq as options expiration arrives
UAE gets emerging market tag from FTSE Group
Short Infosys, says Gujral
Indian ADRs: Satyam, Wipro, MTNL, Sterlite down
Nikkei rises 0.8%, eyes on currency market
Asian markets trading firm; Hang Seng, Nikkei up
Wall Street ends flat; crude slips nearly 2%
Top Gainer
| NSE | Close | % change | BSE | Close | % chnage |
| Ranbaxy Labs | 534.00 | 5.91 | Reliance Comm Comm | 166.45 | 5.28 |
| Reliance Comm | 166.75 | 5.44 | ACC | 997.55 | 3.24 |
| Ambuja Cements | 142.55 | 4.59 | Bharti Airtel | 357.90 | 2.93 |
| ABB | 845.50 | 3.80 | Reliance | 1,026.75 | 2.58 |
| ACC | 997.85 | 3.33 | Sterlite Ind | 173.25 | 2.09 |
Top Loser
| NSE | Close | % change | BSE | Close | % change |
| HDFC | 683.65 | -1.16 | HDFC | 684.10 | -1.01 |
| IDFC | 193.45 | -0.87 | Wipro | 420.30 | -0.69 |
| Wipro | 420.25 | -0.76 | BHEL | 2,444.45 | -0.61 |
| Maruti Suzuki | 1,388.35 | -0.64 | SBI | 3,094.00 | -0.20 |
| BHEL | 2,443.60 | -0.57 | NTPC | 205.95 | -0.19 |
World Market
| US | Dow Jones (Sep 17) | 10607.85 | 13.02 |
|
| Nasdaq (Sep 17) | 2315.61 | 12.36 |
| Asia | Nikkei 225 (Sep 17) | 9626.09 | 116.59 |
|
| Straits Times (Sep 17) | 3076.37 | 9.26 |
|
| Hang Seng (Sep 17) | 21970.86 | 279.41 |
|
| Taiwan Index (Sep 17) | 8158.33 | 58.58 |
|
| KOSPI (Sep 17) | 1827.35 | 15.50 |
|
| Shanghai Composite (Sep 17) | 2598.69 | -3.78 |
| Europe | FTSE (Sep 17) | 5508.45 | -31.69 |
|
| CAC (Sep 17) | 3722.02 | -14.28 |
|
| DAX (Sep 17) | 6209.76 | -39.89 |
(Last Updated: 9/9/2010 16:30)
NIFTY
The benchmark Nifty maintained positive momentum throughout the week and gained more than 160 points on the back of strong liquidity. It sustained above another milestone - 5600 level but failed to cross 5650 on Thursday. The NSE Nifty Junior was up 1.8%; CNX Midcap Index was up 2% and BSE Small-cap Index up 3.5%. Foreign intstitutional investors (FIIs) have been bought more than Rs 40,000 crore since June and Rs 60,000 crore in calendar year 2010. Claiming that recent inflows into the markets were the result of reallocation of existing funds.Today's rally was led by financials followed by infrastructure, realty, select auto and metal companies' shares. However, private power and healthcare companies' shares along with ITC, Bharti, Tata Motors, Sterlite, TCS, Wipro, Reliance Communications and ACC witnessed selling pressure, which capped the gains. New listing
SENSEX
The 30-share BSE Sensex closed at 18,799.66, up 132.95 points or 0.71% and the 50-share NSE Nifty rose 32.20 points or 0.57% to settle at 5,640.05. For the week, both benchmarks rallied 3% each. Financials were the leaders on Thursday; the BSE Bankex rose 2.2% might be ahead of RBI meeting, which is likely in next week.
Cement companies' shares witnessed huge buying interest: ACC shot up 9.5%, Ambuja Cements up 8.5% and Jaiprakash Associates up 6%.
The BSE Metal Index was up 5.3%, as Tata Steel was up 10%, Hindalco up 7% and Sterlite up 4.5%.
US MARKET
In the commodity space, crude rose for the first time in three sessions, bouncing with equities and supported by a weaker dollar as concerns over the European banking system eased and investors cautiously bought riskier assets. In base metals, copper pared off some of the losses.
ASIAN MARKET
CUES
In the
European markets rose, closed at the highest level since April boosted by technology stocks. Stocks also rose after
In the currency space, the dollar slipped against the euro, as the Eurozone's single currency was buoyed by successful bond auctions in
Performance
It was an unexceptional kind of a trading day because global market cues were a bit soft for us early in trade, Asian market were all down about 1% while we were opening, considering that we did not open too badly just about flattish, 15–20 points down on the Nifty, recovered in fact in the afternoon we were trading above 5600 and then a wave of selling came in which dragged it back to 5580. But we managed to come back from there and close around that 5600 level.
This was not bad considering that
Star stock in trade today in the Nifty was ACC. For the second day running ACC put on quite a bit of gains. And if you had to pick a star sector it would have to be telecom. Bharti did extremely well today and Idea also kept it company, RCom had more muted gains but not too bad.
Among other largecap
Among losers private banking names like Axis Bank, HDFC Bank and ICICI Bank and some of the ADAG group names like Reliance Capital, Reliance Infra and Reliance Power were down today.
The breadth was okay. 700 to 600 was not table thumping but not bad. The midcap index also did reasonably okay but it was the rice stocks like KRBL and Kohinoor Foods which did the best today. Some infrastructure names like Gammon Infra and SREI Infra were also strong and then it was an isolated bunch of stocks like Mercator Lines in shipping, IBBI Bank, Bartronics, Talwalkars were some of the names which did well in the midcap space.
On the loosing side, some of the natural resource names like Gujarat NRE Coke and Sesa Goa were weak and yesterdays winners, the cement names Prism Cement, India Cement, Madras Cement all corrected after the big jump in yesterday. And the two Prakash stocks, Prakash Industries and Prakash Steelage, those stocks corrected today. But a closing nevertheless around 5600 for the Nifty cannot be called a weak closing in the context of what has happened with markets around us.