Sensex ends above 9K on rate cut hopes; bank, oil stks lead
Published on Wednesday, November 26th, 2008 at 6:57 PMAuthor: admin (5507 Articles)
The benchmark indices witnessed smart rally in the last one hour of trade, after trading choppy since morning. The Sensex closed above the 9,000 mark and the Nifty shut shop above the 2,700 level on account of buying in oil, banking, power, capital goods, metal and telecom stocks.
The sentiment turned positive on hopes of a rate cut by the Reserve Bank of India as China’s central bank cut its CRR by 100 bps to 16% from 17%. It also lowered lending rates to 5.58% from 6.66%. The bank also slashed lending rates by the most in 11 years.
Markets also got help from the Oil Ministry’s statement. In a conference, the Ministry said that a fuel price revision will be considered in due course, keeping in mind dipping crude prices.
The news propelled oil and banking stocks higher, which in turn helped the markets in the last one hour of trade to get back into strong territory.
The Sensex shut shop at 9,026.72 jumping 331.19 points or 3.81% over the previous close after hitting an intraday high of 9,061.72. The 50-share NSE Nifty rose 3.7% or 98.25 points to settle at 2,752.25.
Reliance Industries, ICICI Bank, HDFC Bank, Bharti Airtel, HDFC, NTPC, ITC, SBI, L&T, Sterlite Industries, ONGC, TCS, Wipro, Reliance Infrastructure, Infosys Technologies and BHEL were biggest contributors to this rally.
Market breadth was weak due to broader indices; about 1,126 shares advanced while 1,559 shares declined. Nearly 511 shares remained unchanged.
The BSE Midcap Index closed at 2,877.38 up 4.79 points or 0.17% while the Small Cap Index fell 18.53 points or 0.56% to 3,314.89.
BSE Bankex outperformed other indices in today’s trade gaining 260.23 points or 5.96% at 4,625.23. ICICI Bank was up 9.55% and HDFC Bank gained 8.63%. Axis Bank shot up 6.05%. Kotak Mahindra, SBI and PNB rose 3-4%.
Buying was also seen in oil stocks; BSE Oil & Gas Index surged 238.69 points or 4.41% to 5,648.06. Reliance Industries went up 6.11% as Reliance Chief Mukesh Ambani, in a conference, announced that start of its second refinery. He also said that no oil supply shortage is likely in next few decades. Reliance Petroleum gained 3.6%.
ONGC rose 2.17%. Oil marketing companies like BPCL surged 5.01%. HPCL and IOC closed in green.
Metal stocks like Sterlite Industries, SAIL, NALCO, Jindal Steel and Tata Steel were up 2.5-13%. Metal Index was up by 156.28 points or 3.66% to 4,420.45.
Telecom stocks like Idea Cellular, Bharti Airtel, MTNL, Reliance Communication and Tata Communication gained 1.3-5.5%.
Healthcare Index rose 60.83 points or 2.16% to 2,879.09. Sterling Biotech, Divis Labs, Ranbaxy Labs and Cipla rose 3.5-8%. Sun Pharma and Dr Reddys Labs were also gained.
Realty Index went up by 32.78 points or 2.12% to 1,576.27. Phoenix Mills, Indiabulls Real and DLF shot up 5.5-7%. However, Unitech fell 9.28%.
Technology stocks like Wipro, TCS, HCL Tech, Satyam and Infosys were gainers. IT Index surged 36.01 points or 1.48% to 2,468.45.
FMCG stocks like ITC, Marico, Godrej Consumer and GlaxoSmith Consumer ended higher. FMCG Index gained 20.01 points or 1.05% at 1,920.85.
Auto Index ended with a gain of 15.73 points or 0.69% at 2,297.75. Amtek Auto rose 9.63% and Hero Honda gained 4.90%. However, Bharat Forge, M&M and Maruti Suzuki closed in red.
Capital Goods stocks Index closed at 6,405.26, up 18.58 points or 0.29% over previous close. L&T and BHEL were up 1.25-1.95%.
Among the midcap stocks, Kingfisher Airlines, Tanla Solutions, Ruchi Soya, IVRCL Infrastructure, Amtek Auto and Deccan Chronicle were up 9-17.8%. However, Adhunik Metalik, Consolidated Construction, Puravankara Projects, Havells India and Bhushan fell 8.6-13%.
In the small cap space, Venus Remedies, GSS America, Emkay Global, KSB Pumps and Indo Tech Transformers were up 11-20%. However, Hatsun Agro, Unity Infraprojects, Ansal Housing, Spanco and Kewal Kiran lost 11-15.7%.
Total traded turnover improved a bit, stood at Rs 60,922.90 crore. This includes Rs 8,809.46 crore from NSE cash segment, Rs 48,888.96 crore from NSE F&O and the balance Rs 3,224.48 crore from BSE cash segment.
On the global front, Asian markets ended higher barring Nikkei. Hang Seng, Straits Times, Kospi and Jakarta jumped 3.4%-4.7%. Shanghai rose 0.49% and Taiwan gained 0.12%. However, Nikkei closed with loss of 1.33%.
Merrill Lynch has cut 2009 oil forecast to $50 to a barrel from $90/bbl and also lowered price forecast to $70/bbl from $100/bbl for 2010. Crude was hovering at around USD 51-52 to a barrel on the NYMEX.
European markets were trading sharply lower, as United Kingdom’s (UK) Q3 GDP reported at 0.5% (QoQ), which was weakest since 1990. It was a sharpest drop in UK household spending since 1985.
FTSE was up by 90 points or 2.1% at 4,081. CAC lost 75 points or 2.3% to 3,034 and DAX went down 75 points or 1.66% to 4,485, at 4:13 hours IST.
The Dow Jones Futures fell 67 points or 0.8% to 8,378 and the Nasdaq Futures lost 11 points or 1% to 1,125, at 4:13 hours IST. Weekly initial jobless claims and personal income and spending data will be announced. New home sales data weekly energy inventory report will also be announced.
Markets @ 3:12 pm : Sensex above 9K; oil, metal, banking, power, CG stocks gain
Buying in oil, banking, metal, power, telecom, and capital goods are supporting the benchmark indices. The Nifty jumped above 2700 while the Sensex is trading above 9000. China’s rate cut has raised hopes that the Reserve Bank may also cut rates soon.
The Sensex went up 327 points to 9,023 and the Nifty gained 99 points at 2,753, at 3:12 hours IST. BSE Midcap Index is flat while the Small Cap Index fell 0.5%.
Top leaders to this rally are Reliance Industries, NTPC, Bharti Airtel, ONGC, ICICI Bank, HDFC Bank, TCS, SBI, SAIL, Wipro, Sterlite Industries, DLF, HDFC, L&T and Reliance Communication shot up 2-13%.
BSE Bankex rose nearly 6% and Oil & Gas Index surged 4.5%. Metal jumped nearly 4%.
Market breadth has improved a bit but is still weak; about 1090 shares have advanced while 1593 shares have declined. Nearly 513 shares are unchanged.
Markets @ 2:40 pm : Nifty back above 2700; oil, banking stocks lead
The benchmark indices gained further on hopes that the Reserve Bank will cut rates in line with China. The Asian gaint has cut CRR by 100 bps and also other interest rates from 6.66% to 5.58%. Oil and banking stocks are leading the market rally.
Top contributors to this small rally are Reliance Industries, Bharti Airtel, NTPC, ONGC, ICICI Bank, HDFC Bank, Wipro, HDFC, SAIL, TCS and Sterlite Industries, which rose 2.5-8%. SBI and PNB also turned in green. Buying is also seen in oil marketing companies like IOC, HPCL and BPCL, as price revision will be considerd in due course, petroleum ministry says.
The Sensex rose 208 points to 8,904 and the Nifty gained 62 points to 2,716, at 2:40 pm. BSE Midcap Index is down 0.5% and Small Cap Index fell 1%.
However, selling continues in Siemens, BHEL, Maruti, Infosys, Suzlon Energy, Reliance Communication, M&M, Unitech and Tata Steel.
Market breadth is in favour of declines; about 993 shares have advanced while 1679 shares have declined. Nearly 524 shares are unchanged.
Markets @ 2:05 pm : Mkts in green but volatile; Nifty holds above 2650
The markets are trading with marginal gains despite hightened volatility in the benchmark indices. Buying is seen in heavyweights like Reliance Industries, ONGC, Bharti, ICICI Bank, HDFC Bank, NTPC, Sterlite, SAIL, Sun Pharma and HDFC.
However, the benchmark indices are still witnessing selling pressure at higher levels due to sell-off in BHEL, Infosys, Reliance Communication, SBI, L&T, Maruti Suzuki, Tata Steel, Tata Power, Suzlon Energy and Unitech.
The Sensex gained 111 points at 8,808 and the Nifty rose 34 points to 2,687, at 2:05 hours IST. BSE Midcap and Small cap indices are down at around 1%.
Lorraine Tan, Vice President, Equity Research, Standard and Poor’s, sees India’s GDP growth at 6.9% in 2009. “We have a neutral view on India right now and sees some more selling. We also see downside risks to earnings.”
She expects markets across the world to retest October lows. Asia will face a normal cyclical downturn but China, Hong Kong, and India will attract capital when risk appetite returns, Tan believes.
Market breadth is weak; about 991 shares have advanced while 1678 shares have declined. Nearly 527 shares are unchanged.
However, on the global front, European markets weak. FTSE, CAC and DAX fell at around 1-1.5%.
Markets @ 12:56 pm : Mkts see-saw; Infy, Siemens, BHEL, L&T, SBI, R-Comm dip
Markets are seeing some volatility at current levels on account of some consolidation. Reliance Industries, ONGC, Bharti, ICICI Bank, HDFC Bank, SAIL, Sterlite, HDFC, DLF, Ambuja Cements, Idea, and Tata Motors are supporting the markets.
However, draggers are Infosys, Siemens, Reliance Communication, BHEL, L&T, M&M, SBI, Tata Steel, Hindalco, Suzlon Energy, Unitech and Ranbaxy Labs are dragging the benchmark indices.
The Sensex rose 78 points to 8,773 and the Nifty gained 25 points at 2,678, at 12:56 hours IST. BSE Midcap and Small cap indices fell over 1%.
Daryl Guppy, Founder and Director, guppytraders.com, sees strong downtrend for the Nifty. He expects markets to retest supports before consolidation. “We see resistance for the index at 2,900–3,600 with good support at 2,400.”
He feels the Sensex is likely to consolidate around 10,000. “We see strong resistance for the Sensex at 12,200. The support band at lower levels is 7,600-8,500, while the technical support target is 6,100.”
Market breadth continues to weak, as broader indices are under pressure. About 974 shares have advanced while 1710 shares have declined. Nearly 512 shares are unchanged.
In the midcap space, Adhunik Metalik, Monnet Ispat, Havells India, Atlas Copco and Puravankara Projects fell 8-15%.
Among the small cap stocks, Magma Fincorp, Hatsun Agro, Oriental Hotels, Piramal Glass and Murli lost 11-17.5%.
Markets @ 11:37 am : Mkts flat; ONGC, RIL, ICICI, HDFC Bank, Bharti, Wipro gain
The benchmark indices are trading with marginal gain. Buying is seen in oil, private banking, FMCG, select technology, metal, and telecom stocks. However, selling continues in Siemens, Infosys, SBI, Reliance Communications, Maruti, BHEL, Unitech, PNB, Suzlon, L&T, Tata Power, DLF, and M&M.
The BSE Sensex gained 38 points at 8,733 and the Nifty rose 9 points to 2,663, at 11:37 hours IST. Midcap and Small Cap indices fell around 1%.
Market breadth is still negative due to weak broader indices; about 1008 shares have advanced while 1660 shares have declined. Nearly 528 shares are unchanged.
Top gainers are Sterlite Industries, ICICI Bank, Wipro, HDFC Bank, ONGC, NALCO and HCL Tech, which gained 2-7%.
Most active shares are Reliance Industries, Educomp Solutions, SBI, Reliance Capital, ICICI Bank and HDFC.
Among the midcap stocks, Adhunik Metalik plunged 13.44%. Monnet Ispat, Puravankara Projects, Infotech Enterprises, Ansal Properties, Apollo Hospital, Balrampur Chini, Kalpataru Power, Brigade Enterprises, Motilal Oswal, Chambal Fertiliser, HCC, Voltas and IVRCL Infrastructure tumbled 4-10%.
In the small cap space, Piramal Glass, Kewal Kiran, Garware Offshore, Phoenix Lamps, EIH Assoc Hotel, Arihant Found, PVR, Valecha Engg, Electrotherm, ILandFS, Subhash Project, JK Cement, Goodyear, Zenotech Labs, Spanco and Unity Infraprojects fell 5-14.5%.
Markets @ 10:30 am : Mkts choppy; SBI, Infosys, Siemens, L&T, BHEL drop
The markets have wiped out most of early gain and are trading choppy. Selling is seen in SBI, Infosys, L&T, BHEL, Siemens, Reliance Communications, NTPC, Suzlon Energy, Unitech, DLF, Reliance Infrastructure, Ranbaxy, Tata Steel, PNB, M&M, and Hindalco. However, Bharti, ONGC, ICICI Bank, Wipro, HDFC Bank, Sterlite, HDFC, TCS, and SAIL are on buyers’ radar.
The Sensex rose 46 points to 8,742 and the Nifty gained 11 points at 2,665, at 10:30 hours IST. BSE Midcap and Small Cap indices went down over 0.5% each.
Unitech, Balrampur Chini and Sesa Goa fell over 5%.
Siemens plunged over 10% after its numbers for the fourth quarter. Its Q4 net profit was down at Rs 225 crore versus Rs 308.6 crore due to higher provision to cover cost overrun. Margins declined to 12.5% versus 15.6%. New orders booked saw drop of 14% at Rs 8718.2 crore versus Rs 10108.5 crore.
Markets breadth is weak; about 1163 shares have advanced while 1512 shares have declined. Nearly 521 shares are unchanged.
In the midcap space, Simplex Infra, ESS DEE, Geodesic, Sadbhav Engg and Cadila Health lost 6-13%. However, United Breweries, Lakshmi Energy, Maha Seamless, Vishal Retail and Engineers Ind gained 4-6.5%.
Among the midcap stocks, Magma Fincorp, aurionPro Sol, Force Motors, Arihant Found and Ruby Mills fell 8-17.5%. However, Balkrishna Ind, Kewal Kiran, Dynamatic Tech, Webel SL Energy and Ramco System gained 11-16.5%.
Markets @ 9:56 am : Mkts rebound; RIL,ONGC, ICICI, HDFC Bank lead
The markets have opened higher as indicated by the SGX Nifty, which was up 2%, and following an up move in Asian markets. The Nifty is still trading below 2,700 while the Sensex is trading below the 9,000 mark. Buying is seen in private banks, capital goods, cement, select technology and metal stocks.
At 9:56 am, the Sensex rose 91 points to 8,786 and the Nifty gained 23 points at 2,677. CNX Midcap went up 13 points to 3,284.
ICICI Bank, Wipro, Suzlon Energy, Unitech, HDFC, HDFC Bank, Tata Motors, L&T, BHEL, ACC, Ambuja Cements, Sterlite Industries, M&M and TCS are gainers.
However, losers are Siemens, Zee Entertainment, Infosys, Satyam, SBI, Nalco and Ranbaxy Labs.
Asian markets are trading higher barring Nikkei. Hang Seng, Kospi, Straits Times and Jakarta gained 1-4%. Shanghai and Taiwan rose 0.4-0.7%. However, Nikkei fell 0.7% on back of profit booking as well as Yen appreciated by 1.5% to 95.2/$ and the index was up over 5% yesterday.
US markets ended flat even as the treasury commits up to USD 800 billion in two new programs to unfreeze credit markets & buy mortgage-related debt; policy makers hope initiatives will bring down interest rates on mortgages & consumer loans.
The Dow gained 36.08 points, or 0.43%, to 8,479.47. The S&P 500 gained 5.58 points, or 0.66%, to 857.39. The Nasdaq composite index slipped 7.29 points, or 0.50%, to 1,464.73.
Market cues:
FIIs net sell USD 77.2 million in equity on November 24
MFs net buy Rs 104 crore in equity on November 24
NSE F&O Open Int up by Rs 950 crore at Rs 53,448 crore
F&O cues:
Futures Open Int up by Rs 443 crore, Options Open Int up by Rs 507 crore
Nifty Nov Futures shed 30 lakh, Dec Futures add 38 lakh shares in Open Int
Nifty Nov at 4-pt discount, Dec at 2-pt premium
Nifty Open Int Put-Call ratio at 0.84 versus 0.85
Nifty Puts add 4.7 lakh, Calls add 14 lakh shares in Open Int
Nifty 2600 Put adds 3.6 lakh shares in Open Int
Nifty 2700 Call adds 2.7 lakh shares in Open Int
Nifty 2800 Call adds 2.7 lakh shares in Open Int
Stock Futures Open Int unchanged
Source : MoneyControl
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