Monday, August 1, 2011

BHEL


The market continued to trade higher amid choppy trade though the Sensex shaved off more than 100 points from early gains. The support was led by financial, telecom, auto, healthcare, FMCG and select infrastructure stocks. However, the broader indices were flat as market breadth was mixed.
It seemed that it was a relief rally across the globe post the US House and Senate's approval to raise the nation's debt ceiling and cut federal deficit.
The Dow Jones and Nasdaq futures rallied 1.5% each, reacting to the US debt deal. Asian markets like Hang Seng, Nikkei, Straits Times and Kospi were up 1-1.8%. Taiwan went up 0.7%.
The 30-share BSE Sensex was trading at 18,333, up 136 points and the 50-share NSE Nifty rose 39 points to 5,521. The Sensex had shed more than 640 points in previous four sessions.
Heavyweights HDFC, Infosys, ICICI Bank, NTPC, L&T and ONGC gained 1-2%. Bharti Airtel, HDFC Bank and Wipro were up over 0.5%, with TCS and BHEL declining nearly 0.7% each.
However, SAIL was the biggest loser on Nifty after disappointing quarterly numbers, falling nearly 5%. JSPL, Sesa Goa and Sterlite Industries lost 2-3%.
JSW Steel, Adani Enterprises, Cox & Kings, Rushil Decor, SBI, Reliance Industries, Infosys and Suzlon Energy were the most active shares on exchanges.
Midcaps like Godfrey Phillip, TVS Motor, Cox & Kings, Hexaware Tech and M&M Financial surged 5-11%. However, Usha Martin, Jindal Saw, Himadri Chemical, Financial Tech and India Infoline lost 6-9%.
Nifty holds 5500; Infosys, HDFC, Bharti, ICICI Bank lead
Short covering has taken the benchmark Nifty above the 5,500-mark today. The recovery was on expected lines after a sell-off seen in previous four sessions. Approval of US debt limit yesterday has given a sigh of relief for global markets.
Asian markets like Hang Seng, Nikkei, Straits Times and Kospi went up 1-1.8%. Taiwan rose 0.5% while Shanghai was flat. Even Dow Jones and Nasdaqfutures gained 1.5% each.
Indian markets too participated in the rally. The 50-share NSE Nifty was trading at 5,528, up 47 points and the 30-share BSE Sensex jumped 165 points to 18,362.
However, Anil Manghnani of Modern Shares & Stock Brokers says the euphoria of the US debt being raised will not last more than a couple of days.
He says the market is still stuck to the range and believes until the range is taken out, whether 5,400 on the downside or 5,750 on the upside, one should continue to trade the range.
Financial stocks like HDFC, ICICI Bank, HDFC Bank, Kotak Mahindra Bank and Axis Bank moved up 1-3%. Technology stocks too gained as they are the software exporters; Wipro and Infosys rose 1.3% each. TCS was up 0.6%.
Among others, Bharti Airtel, NTPC, ITC, L&T and SBI gained between 0.8-1.3%. Auto stocks were witnessing buying interest ahead of their monthly numbers; Tata Motors, M&M, Hero Honda, Bajaj Auto and Maruti jumped 1-2%.
However, SAIL (post earnings) and JSPL were biggest losers on Nifty, with falling between 3% & 4%. Sterlite Industries and Sesa Goa gained 2-2.5%.
Though the market was on buyers' radar today but the market breadth was not suggesting too much strong trade today. About 709 shares advanced against 516 shares declined on National Stock Exchange.
Sensex spurts 200 points on US debt deal approval
The first day of a brand new month saw a spectacular start to trade with the Sensex shooting up 200 points. The rally was mainly on the back of positive global cues coming from the US.
Laying out the endgame in the US debt crisis just two days before a deadline to lift the borrowing limit, the White House and congressional leaders said the compromise would cut about USD 2.5 trillion from the deficit over the next 10 years.
The Indian market has snapped four-day losing streak today. At 9:18 hours IST, the 30-share BSESensex gained 221 points to 18,418 and the 50-share NSE Nifty went up 65 points to 5,547.
Heavyweights Reliance Industries and ONGC were leading the market, with rising over 1%.
Among other largecaps, Jaiprakash Associates, DLF, Axis Bank, ICICI Bank, HDFC Bank, Reliance Comm, Reliance Capital, Bharti Aitel, SBI, Tata Steel, IDFC, L&T, Maruti Suzuki and Tata Motors were on buyers' radar.
However, SAIL, JSPL and Siemens were only losers on Nifty.
The CNX Midcap went up 95 points to 8,112.
Market breadth too was positive; about 768 shares advanced against 243 shares declined on National Stock Exchange.
JSW Steel plunged over 9% on huge volumes post.
Adani Enterprises shot up 9% after the company said it did not own or operate any iron ore mine in India. Adani Power too gained 6% and Mundra Port was up 4%.
TVS Motor rallied 7.5% post strong quarterly numbers. Mcleod Russel was up 2% and Eicher Motor up 3%.
Mphasis is going to acquire US-based Wyde; the stock went up 1%.
GTL was up 5% as ICICI Bank became a key shareholder in the company after taking 29.3% stake in the company. GTL Infra rose 4%.
Cox & Kings, Dena Bank and Vijaya Bank were up 2%.
However, India Infoline plunged 3% on disappointing Q1 numbers.
Global cues
Asian markets were trading higher. Hang Seng, Nikkei, Straits Times and Kospi gained 1-1.8%. Taiwan was up 0.6% and Shanghai up 0.16%.
US Debt deal approved
US President Barack Obama said that leaders of both parties in the US House and Senate had approved an agreement to raise the nation’s debt ceiling and cut the federal deficit.
Senate majority leader Harry Reid approved the emerging accord among Republican leaders and the Obama administration.
The deal would raise the USD 14.3 trillion debt ceiling through 2012, cut spending by about USD 1 trillion and call for enactment of a law shaving another USD 1.5 trillion from long-term debt by 2021.
Food for thought: Since 1962 Congress has raised the debt ceiling 73 separate times, including 11 times in the past decade alone
US stock futures surged over 1% post worst weekly loss in a year. S&P 500 had lost 4% last week.
Commodities
December gold finished up 0.8% at USD 1629.2/ounce on Friday after traded to a new all-time high at USD 1634.9 an ounce
September silver contract was up 0.7% at USD 40.08/ounce
September crude oil contract fell 1.8% at USD 95.7/barrel - lowest close since July 18
Crude oil shed 4.2% last week
September natural gas contract was down 9 cents at USD 4.15 per MMBtu, worst levels since July 8
F&O cues:
Total stock futures OI add 4.11crore shares in OI
Nifty futures OI add 6.32 lakh shares in OI, prem at 6.05 versus prem at 10.95
Nifty Open Int PCR at 1.12 versus 1.06
Highest OI outstanding at 5700 call, 5400 put and 5600 call
Nifty 5100 put adds 25.02 lakh (198%) shares in Open Int
Nifty 5000 put adds 12.88 lakh (72%) shares in Open Int
Nifty 5400 put adds 11.37 lakh (23%) shares in Open Int
Nifty 5600 call adds 10.47 lakh (28%) shares in Open Int
Nifty 5200 put adds 9.99 lakh (28%) shares in Open Int
Nifty 5600 put sheds 0.36 lakh (2%) shares in Open Int
India VIX up 6.81% at 19.77

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