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A smart closing on the back of support from positive global cues and ended the last session of this week on positive note. After two days of continious fall market finally showed a strenght and steps ahead on buying in metal, realty and capital goods shares. Midcap and small cap stocks also followed the same trend; wherein media stocks witnessing good buying interest while railway related stocks declined after Railway budget. Strong global cues and US index futures data which showed the Dow could open on positive side on opening bell bolstered the sentiment with bourses exhibiting strength throughout the day. However, profit taking in last leg of trade capped gains. It was a strong close to the week as indices closed with decent gains ahead of interim budget to be presented on Monday.
The Sensex ended the day with a gain of 168.91 points, or 1.78% at 9,634.74 after touching a high of 9,695.59 and a low of 9,540.60. The broad-based NSE Nifty gained 55.30 points, or 1.91% at 2,948.35 after hitting a high of 2,969.75 and a low of 2,896.85. BSE Midcap and Smallcap index rose 1.51% and 0.62% respectively. Overall market breadth was positive. Out of the total 2,531 shares traded at BSE, 1,484 advanced, 947 declined while 100 remained unchanged.
Railway Interim Budget : Railway Minister Lalu Prasad Yadav, presnted the interim Rail Budget in Parliament, and said railways have reported a cash surplus at Rs 900 billion in the last 5 years and he plans to use Rs 700 billion of the surplus to upgrade rail productivity.Passenger fares were cut by 2% while Freight rates were left unchanged in the interim rail budget presented today. ( Read the whole story here )
Weekly Vaule : It was a strong close to the week as indices closed with decent gains ahead of interim budget to be presented on Monday. Week-on-week Sensex and Nifty have gained 3.6% and 3.7% respectively. BSE Realty indices climbed 12.6% this week, followed by Capital Goods index, which gained 7.9%, while IT and FMCG indices were down 1.4% and 0.5% respectively on weekly basis. European shares were trading higher as banks drew strength from a US plan to subsidise mortgage payments for troubled homeowners, and basic resource stocks rallied on the back of higher base metals prices. US indices futures were trading higher by around 0.5%.
SECTORAL
All BSE sectoral indices ended on green note except Healthcare Index, which lost 0.4%. Metal and Capital Goods indices gained the most, up 2.8% and 2.5% respectively. M & M and R Com surged 7% and 5.3% respectively, becoming top gainers among Sensex stocks, while Sun Pharma and Ranbaxy were the top losers, shedding 3.4% and 0.3% respectively. Big support to the markets was seen from infrastructure, banking, metal and oil & gas stocks.
CAPITAL GOODS : BSE Capital Goods index ended at 6,547.42, up 2.48% or 158.47 points. BHEL, Siemens and L&T went up 2.8-3.9%. India's top power equipment maker by sales Bharat Heavy Electricals (Bhel) jumped 3.02% to Rs 1455 after its chairman said that the company expects to get a contract worth Rs 1000 crore from NTPC for a 500 megawatt power plant.
TELECOM : India's largest cellular services provider Bharti Airtel up 0.13% to Rs 651.75, off day's high of Rs 662. As per recent reports, the Department of Telecom (DoT) has sought clarification from Bharti Airtel for not declaring the income from bundling handsets along with connections as part of revenue, meant to be shared with the DoT. Reliance Communication shot up over 5%. Tata Communication gained over 4 %.
OIL & GAS : BSE Oil & Gas index was up 131.64 points or 2.05%, to 6,541.57. India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) jumped 3.02% to Rs 1392.40on reports the company is lining up further $6 billion to develop nine satellite discoveries in the Krishna Godavari (KG) basin.
India's largest oil exploration firm by sales Oil & Natural Gas Corporation (ONGC) rose 1.61% to Rs 704.80 on reports the company may offer a 15-20% stake in its planned petrochemical project in western India to GAIL (India). The stock came off day's high of Rs 714.35
METAL : BSE Metal Index outperformed other indices, went up 143.76 points or 2.8%, to settle at 5,282.09. Metal shares gained following rise in key base metal prices on the London Metal Exchange. India's largest private sector steel maker by sales Tata Steel jumped 4.60 % to Rs 194.15 and was the top gainer from the Sensex pack. Tata Steel's managing director today said the company is not looking at new acquisitions as of now. He forecasts February 2009 sales to rise 10-15% over January 2009.
Hindalco (up 1.32% at Rs. 45.75), Nalco (up 5.73% at Rs. 208.30), Jindal Steel & Power (up 3.88% at Rs. 1089.95), Sesa Goa (up 2.13% at Rs. 95.65), gained from the steel pack.
Sterlite Industries India gained 2.47% to Rs 275.40 after a block deal of 2.01 lakh shares constituting 0.03% of the company's equity was executed on NSE at Rs 276 per share.
IT : Most IT pivotals gained on hopes that government efforts worldwide, including talk of a US subsidy for mortgage payments, would soften the blow of the global downturn. TCS, India's largest software services exporter by sales rose 0.25% at Rs. 511.20. India's third largest software services exporter, Wipro gained 0.65% at Rs. 223.80 after its ADR rose 2.55% on Thursday, 12 February 2009. However India's second largest software services exporter Infosys Technologies fell 0.23% at Rs. 1251.65 .
IT firms derive a lion's share of revenue from exports. The rupee rose to 48.73/74 per dollar, from its previous close of 48.85/86, as gains in Asian stocks raised hopes of capital inflows to the domestic shares. A stronger rupee affects operating margin of IT firms negatively as they earn most of their revenues from exports.
BANKEX : BSE Bankex surged 108.37 points or 2.2%, to settle at 5,024.92. Bank shares vaulted on expectations the central bank may cut interest rates to boost growth after inflation slowed to a one-year low.
India's second largest private sector bank by net profit HDFC Bank rose 1.1% to Rs 944.15 as its ADR rose 2.68% on Thursday, 12 February 2009. India's largest private sector bank by net profit ICICI Bank gained 3.08% to Rs 434.40 on its 0.23% gain on ADR on Thursday, 12 February 2009.
India's largest bank in terms of assets and branch network State Bank of India advanced 3.16% to Rs 1195.90 .
REALTY : Real Estate index was up 35.67 points or 2.29%, to close at 1,592.36. Realty shares advanced on hopes the forthcoming interim budget may include sops to the housing sector. India's largest real estate firm by market capitalisation DLF rose 2.52% to Rs 160.55 despite reports the company has pulled out of its Rs 2800 crore satellite township project in West Bengal.
Indiabulls Real Estate (up 1.39% at Rs.109.15), Anant Raj Industries (up 5.01% at Rs. 56.55), and HDIL (up 2.09% at Rs. 87.75) advanced.
As per reports, the government may announce tax sops aimed at boosting the housing sector, which has been identified as a potential driver for the economy and job creation during a slowdown. As things stand, taxpayers are allowed to deduct up to Rs 1.5 lakh of interest paid on home loans from their taxable income. This limit could be raised to Rs 2 lakh. This, if it happens, will enable those who have bought a house for self-use to save up to Rs 68,000 in tax. At present, the maximum anyone can save through this deduction is Rs 51,000.
Another possible sop for the housing sector could be reintroduction of Sec 80IA, under which corporates building dwelling units of less than 1,000 square feet area were exempted from tax on the profits from these units. This move may prompt developers towards constructing smaller houses, making houses more affordable for the lower segment of the market.
AUTO : Benchmark index for auto index was up 57.16 points or 2.24%, to 2,612.22. Auto stocks gained on hopes the government may announce some tax sops to the automobile sector in the forthcoming interim budget on Monday, 16 February 2009.
India's top tractor maker by sales Mahindra & Mahindra jumped 6.99% to Rs 320.60 and was the top gainer from the Sensex pack.
Tata Motors (up 1.06% at Rs. 137.75 ), Hero Honda Motors (up 1.50% at Rs. 932.15 ), Maruti Suzuki (up 2.43% at Rs. 628.80) gained.
While an across-the-board 4% cut in excise in December 2008 makes any drastic concessions difficult, excise duty on big cars with engine capacities of 1200 cubic centimeter (cc) or more in petrol is likely to get reduced to 16% from the existing 20%.
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