After the Bell : 05-01-2009

By Abhishek on 7:41 PM

Filed Under: , , ,

In the light of stimulus package and rate cut by Reserve Bank of India ( RBI ) market made comparatively unexciting opening. The New Year rally also carried out today and BSE Sensex opened with a gain of 151.45 points, at 10,109.67 on trade today and remain positive throughout the session. The most exciting part of today's trade was last 45 minutes of trade. NSE Nifty managed to cross the 3,100 mark in the last 45 min of trade and closed above the same level. The Sensex surged above the 10,300 level in trade today with strong volume. This surge helps market to close above the high of December series. The Sensex ended the day with a gain of 317.38 points, or 3.19% at 10,275.60 after touching a high of 10,306.17 and a low of 10,069.11. The broad-based NSE Nifty gained 74.70 points, or 2.45% at 3,121.45 after hitting a high of 3,131.95 and a low of 3,056.45.  Both Indices closed near to their intraday highs. BSE Midcap and Smallcap index rose 1.78% and 1.21% respectively.




All the sectoral indices except the FMCG and Realty ended in the green. Metal and the Oil & Gas index were the highest gainers for the day with more than 5% gains, followed by the Bankex. Among the Sensex stocks Sterlite, Tata power and JP Associates were the highest gainers while Satyam and Bharti were on the losing side. Other stocks like Mundra and IFCI also saw some long awaited action.
 
Coordinated fiscal and monetary measures by policymakers to boost sagging growth and firm global markets boosted the domestic bourses, with the barometer index, the BSE 30-share Sensex, breaching the psychological 10,000 mark. The Sensex vaulted 317.38 points, or 3.19%.
 
The key benchmark indices extended gains in late trade led by rally in banking and metal stocks. Coordinated fiscal and monetary measures by policymakers to boost sagging growth and firm global markets boosted the domestic bourses. The barometer index, the BSE 30-share Sensex, breached the psychological 10,000 mark. The Sensex rose 317.38 points, or 3.19


But the market was volatile. After opening on a firm note, the market pared gains at the onset of the trading session. It bounced back again shortly and witnessed a bout of volatility later. After a 2.34% rally in afternoon trade triggered by a firm opening of the European markets, the market pared gains in mid-afternoon trade. The market spurted in the last half-an-hour of trade.

Though the Sensex had breached the 10,000 market in intraday trade on Friday, 2 January 2009, it had ended below that level.

Bank stocks rose on speculation falling bond yields and lower rates would accelerate loan growth and profitability. Metal stocks rose after the government withdrew exemptions from countervailing duty on TMT bars, used in construction activity, and withdrew exemption from basic customs duty on zinc and ferro alloys, which was provided earlier to contain inflation.

Shares of commercial vehicle makes rose as the government's second stimulus announced after trading hours on Friday, 2 January 2009, comprised measures to boost sagging truck and bus sales in India. Infrastructure stocks rose after the government unveiled steps to make availability of funds to infrastructure projects

Credit availability has been hiked in a variety of ways, the interest ceiling on external commercial borrowings has been removed; the cap on foreign institutional investments in the domestic corporate debt market has been jacked up two-and-a-half times from $6 billion to $15 billion; a special purpose vehicle is being created to lend to non-banking finance companies to the tune of Rs 25,000 crore; Indian Infrastructure Finance Company is being permitted to raise another Rs 30,000 crore by means of tax-free bonds, and states are allowed to borrow an additional Rs 30,000 crore from the market.

As per the provisional closing, the BSE 30-share Sensex closed up 317.38 points, or 3.19%, to 10,275.60. The Sensex rose 347.95 points at the day's high of 10,306.17 in late trade. The Sensex rose 110.89 points at the day's low of 10,069.11 in early trade.

The S&P CNX Nifty rose 81.85 points, or 2.45%, to 3,121.45

The BSE Sensex clocked a turnover of Rs 4,171 crore, lower than Rs 4,279.80 on Friday, 2 January 2009.

The BSE Mid-Cap index was up 1.74%, while BSE Small-Cap index was up 1.17%. Both the indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1,673 stocks advanced and 901 stocks fell. A total of 73 stocks remained unchanged.

Jaiprakash Associates, Tata Power Company, Larsen & Toubro and Reliance Infrastructure rose by between 3.57% to 7.87%.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) jumped 6.93% to Rs 1,372.90 as global crude oil prices climbed amid rising tensions in the Middle East. Higher oil prices would boost RIL's refining margins. Late last month, its unit Reliance Petroleum (RPL) started processing crude at its 5,80,000 barrels per day refinery.

India's largest state-run oil exploration firm by revenues ONGC jumped 7.66% on rally in crude oil prices. Oil prices extended recent gains, as Israel intensified its military campaign against Hamas, raising concerns about possible supply disruptions from the Middle-East. Crude oil for February 2009 delivery rose as much as $2.34, or 5.1%, to US$48.68 a barrel on the New York Mercantile Exchange.

India's largest drug maker by sales Ranbaxy Laboratories fell 0.6% after Japan's third-largest drugmaker, Daiichi Sankyo Co, said on Monday it would book an appraisal loss of 359.5 billion yen ($3.9 billion) on a parent-company basis on its stake in Ranbaxy Laboratories. Daiichi Sankyo paid nearly 500 billion yen for a 63.9% stake it acquired in the major generic drug maker last year.

India's largest telecom servies provider by sales Bharti Airtel slipped 2.81% on concerns the company may reduce tariffs to retain costumers following an aggressive nationwide rollover of the GSM-based cellular services by Reliance Communication (RCom), India's second India's second largest telecom services provider by sales. RCom was up 4.65%.

Steel stocks surged in late trade after the government withdrew exemptions from countervailing duty on TMT bars, used in construction activity. Bhushan Steel, JSW Steel, Tata Steel, Steel Authority of India, Jindal Steel rose by between 1.27% to 9.36%.

India's largest zinc maker by sales Hindustan Zinc rose 8.96% after the government withdrew exemption from basic customs duty on zinc.

Other metal stocks, Hindalco Industries, Sterlite Industries and National Aluminum Company rose by between 1.94% to 10.93%.

Banking shares advanced on speculation falling bond yields and lower rates would accelerate loan growth and profitability. India's largest private sector bank by net profit ICICI Bank rose 5.92% after its American depository receipt (ADR) rose 7.06% on Friday, 2 January 2009. The bank had recently cut its main lending rates by 50 basis points.

India's second largest private sector bank by net profit HDFC Bank rose 3.07% as its ADR gained 7.5% on Friday. India's biggest bank in terms of total assets and branch network, State Bank of India, gained 2.03%.

Allahabad Bank rose 2.65% after the bank cut benchmark prime lending rate by 75 basis points from 13.25% to 12.50%. Union Bank of India rose 2.7% after bank on 3 January 2009 announced a reduction in deposit rates ranging between 25 and 75 basis points across various maturities. This will pave the way for the bank to lower lending rates also.

Bank of Baroda rose 2.21% after bank on 3 January 2009 announced a reduction in deposit rates ranging between 25 and 75 basis points across various maturities. This will pave the way for the bank to lower lending rates also.

India's largest dedicated housign finance firm by operating income HDFC rose 5.18%.

IFCI galloped 10.13% after a block deal of 6.06 lakh shares was executed on NSE at Rs 25.50 a share.

Future Capital Holdings spurted 12.01% after the company acquired non-banking financial firm Black Diamond Finance.

IT pivotals gained on hopes a large government stimulus package may help revive the US economy. India's second largest IT exporter by sales Infosys gained 3.72% as its ADR rose 2.36% on Friday. India's third largest IT exporter by sales Wipro rose 0.86% as its ADR rose 3.2% on Friday. India's largest IT exporter by sales Tata Consultancy Services rose 3.56%. IT firms derive a lion's share of revenue from export to the US.

But India's fourth largest IT exporter by sales Satyam Computer Services fell 6% on reports the company's management and some of its institutional investors are reportedly exploring a merger with another software firm. Meanwhile, the stake owned in Satyam Computer Services by SRSR Holdings, which was floated by founders, has fallen to 5.13% from 8.27% in November 2008, the company said on Friday (2 January 2009).

GTL soared 5.52% on share buyback plan.

Other Auto stocks, Mahindra & Mahindra and Maruti Suzuki India rose by between 2.35% to 3.15% on hopes rate cuts would spur demand for vehicles which is mainly driven by finance.



If you enjoyed this post, make sure you subscribe to my regular Email Updates!

0 comments for this post

Post a Comment

 Web Site Hit Counter Site Meter