Market performs stagnant at early high
The domestic markets are constantly performing at an upbeat note extending the advances of the early hours tracing the positive cues from the Asian market. However, the markets have become a bit stagnant at this level. All the 13 Indices are trading in green with significant buying in the Metal, Bank, IT, Oil& Gas, CG and PSU stocks. The broader markets stocks also joined the rally today with significant gains extended by both BSE Mid Cap and the BSE Small Cap index.
The market breadth is showing overall strength, which is significantly positive at the moment. On BSE, out of 2,583 stocks traded so far, 1632 stocks advanced whereas 867 stocks declined and 84 stocks are unchanged.
Today, the major indices opened the day’s session sharply higher tracking positive cues from the Global markets. The Asian major indices are trading in green on the back of speculation that Federal Reserve Chairman Ben S. Bernanke will signal that U.S. interest rates will be kept near a record low. In china, Shanghai Composite is trading lower by 0.18% as developers are adversely affected by the central bank order to the lenders to set aside larger reserves under its tighter monetary policy, while Hang Seng is trading higher by 2.61%. On the other hand, in Japan, Nikkei is also trading higher by 0.73% as the U.S. consumer prices rose less than expected which has eased the concern that Federal Reserve will increase interest rates further. On Friday, the U.S market closed higher, marking its fourth straight day advance on the back of the announcement made by Fed Reserve that its move to hike the discount rate doesn’t hold indication for any change in the economy or monetary policy.
As per NSE updates, Tata Steel ltd (up by 2.47%), DLF ltd (up by 0.79%) and Shree Renuka Sugars ltd (up by 1.69%) are the most active stocks of the moment.
At 11:26 AM BSE SENSEX was at 16,369.00 up by 177.37 points or by 1.10% and the NSE Nifty was at 4897.05 up by 52.15 points or 1.08%.
The BSE MIDCAP was at 6,477.33 up by 44.97 points or by (0.70%) and the BSE SMLCAP was at 8,256.22 up by 51.65 points or by (0.63%).
On macroeconomic front, Finance Minister Pranab Mukherjee is all set to present the Budget 2011 on Friday, in which it is expected that the excise duty may be increased, making way for partial rollback of stimulus measures. In addition to this, the commerce ministry has proposed the finance ministry for funds to be doubled from the present Rs. 15 crore under the Market Development Initiative, along with the proposal to extend subsidy on bank interest by a year to March 2011.Further, the chairman of Prime Minister’’s Economic Advisory Council, C Rangarajan is of the view that the government must lower its fiscal deficit by 1-1.5% via slicing its expenditure across the board.
In the global arena, in U.S, the Federal Reserve Board has raised the discount rate charged to banks for direct loans by 25 basis points to 0.75% from 0.50%, thereby, compelling banks to rely more on the money market for their short term borrowings. However, it has also made an additional announcement that the decision to hike the discount rate doesn’t hold indication for any change in the economy or monetary policy of US. Further, Consumer Price Index (CPI) for January reported at a 0.2% (m-o-m) increase against an expected reading of 0.3% rise.
Shree Renuka Sugars ltd (Rs. 182.75 which is up by 2.85 points or 1.58%)signed an agreement with Brazilian conglomerate Grupo Equipav to buy a controlling stake of 50.79% in Equipav S A ACUCAR e ALCOOL (Equipav) against Rs. 1,530 crore or $329 million and spiked its rating to world’s top three sugar players.
Reliance Industries ltd (Rs. 990.80 which is up by 6.55 points or 0.67%) operated D6 gas field in the Krishna-Godavari basin has produced more than 10 billion cubic meters of natural gas worth over $1.5 billion in the first 10 months from its commencement on April 2, 2009.
NMDC ltd (Rs. 458.25 which is down by 0.05 points or 0.01%) is likely to pick up 50% stake in the Ferrous Resources Ltd’s Brazilian operations for $2.5 billion, marking the first overseas foray by India’s largest mining company.
The top gainers of the BSE Sensex pack are Jai prakash Ltd (Rs. 134.05, +3.39%), Hindalco Inds (Rs. 154.75, +3.34%) and Tata Steel (Rs. 575.35, +2.28%). The main loser was Mahindra & Mahindra (Rs. 996.80, -0.21%).
BSE METAL index was at 16,143.44 up by 337.29 points or by 2.13%. The main gainers were Hindalco Inds (Rs. 154.90, +3.44%), National Aluminum (Rs. 378.80, +3.16%) JSW Steel (Rs. 1052.60, +3.15%) and Hindustan Zinc (Rs. 1104.00, +2.64%).
The BSE IT index was at 5,169.16 up by 87.49 points or by 1.72%. The main gainers were Infosys (Rs. 2580.10, +2.00%), Tech Mahindra (Rs. 955.20, +1.96%) Financial Tech (Rs. 1524.00, +1.78%) and Aptech (Rs. 175.70, +1.77%).The main loser was Rolta India down by (0.64%) at Rs. 178.80.
Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
Comments
No comments yet.
Leave a comment