You don't have to cook fancy or complicated masterpieces - just good food from fresh ingredients.
Fresh ingredients seem to be lacking for the market's upmove. Neverthless, the bulls seem to have found their feet again after a sluggish start to the week. Even though the Men in Blue (Indian cricket team) didn't get to show their much-vaunted prowess in the T20 World Cup, on the stock market it was a different story.
Today, we expect the bulls to end the week on a firm note owing to strong global cues. On the whole, the market is likely to be more or less stable with intermittent bouts of buying and selling. Barring usual profit booking, the market should continue its upward march for another week, albeit at a slower pace.
Yesterday, the bulls were firing on all cylinders, backed by a firm trend in Asian market and optimism that the Indian economy remains on a strong wicket despite a slight slippage in July. The Sensex notched up a ton (100 points) and the small-cap and mid-cap shares too joined the party (up 0.8% each), indicating a broader participation among investors. The market breadth was positive and the volume was not bad either, though it needs to show improvement if the rally is to be sustained. FIIs remain committed to the long-term India story, though yesterday they didn't shop much.
A stupendous response to the Power Grid IPO shows that the appetite for quality Indian paper remains strong as ever, both among local and overseas investors. Another positive sign is that the CMIE, an independent economic think tank, has raised its GDP forecast for FY08, from 9% to 9.1%. The RBI is also confident of an 8.5% growth, so is the Government.
The only worry is that most of this good news is already in the price. In short, the market needs fresh set of positive triggers which may come in the form of encouraging words from the Fed in the coming days and better than expected earnings growth in the second quarter from local companies.
US blue chips rallied on Thursday, as investors cheered upbeat news on General Motors, McDonald's and Countrywide Financial and continued to bet that the Federal Reserve will cut interest rates next week.
Countrywide, the largest US mortgage company, rose the most in seven years after analysts said it can pay its debts. GM clocked its steepest gain since April 2006 on prospects that its workers will agree to cost cuts. McDonald's rose to a record on plans to boost dividend.
Shares of financial companies contributed the most to the rally, helped by a Fed report showing declines in the commercial paper market slowed. The Standard & Poor's 500 Index is up 2.1% this week.
The S&P 500 gained 12.39 points, or 0.8%, to 1,483.95. The Dow Jones Industrial Average climbed 133.23 points, or 1%, to 13,424.88. The Nasdaq Composite Index rose 8.99 points, or 0.4%, to 2,601.06.
US light crude oil for October delivery rose 18 cents to settle at $80.09 a barrel on the New York Mercantile Exchange, a record closing high. Oil prices briefly hit an all-time session high of $80.20 a barrel earlier.
In currency trading, the dollar fell to another record low versus the euro and inched higher against the yen. Treasury prices fell, raising the yield on the 10-year note to 4.46% from 4.41% late on Wednesday. COMEX gold for December delivery fell $2.80 to settle at $717.90 an ounce.
European stocks ended higher. The pan-European Dow Jones Stoxx 600 index climbed 0.9% to 372.41. The German DAX 30 closed up 0.8% at 7,535.97, while the French CAC 40 rose 1.1% to 5,565.97 and the UK's FTSE 100 added 0.9% to 6,363.90.
Latin American stocks rose. Mexico's IPC index climbed 0.8% to 30,302.23, retracing a 0.4% loss a day ago. Brazil's Bovespa surged 1.9% to 54,908.18. Chilean stocks were up 0.6% at 3,133.61 ahead of a rate decision by the country's central bank. Argentina's Merval rose 1.6% to 2,040.25.
In other emerging markets, the RTS index in Russia surged 1.7% to 1932 and the ISE National-30 index in Turkey was up 0.9% at 62,511.
Most Asian markets were trading higher this morning on hope that global credit conditions are easing after Countrywide Financial, the largest US mortgage lender, secured new financing.
The Nikkei in Tokyo was up 179 points at 16000 while the Hang Seng in Hong Kong jumped 274 points to 24,811. The Kospi in Seoul advanced 20 points to 1867 and the Straits Times in Singapore was up 47 points at 3551.
Mitsubishi UFJ Financial Group and National Australia Bank led a rally in regional banks. Toyota and Nintendo led an advance among exporters after initial jobless claims in the US climbed less than forecast. BHP Billiton and Sumitomo Metal Mining rose after metals and crude oil prices jumped.
The Morgan Stanley Capital International Asia-Pacific Index rose 0.8% to 151.21 at 11:08 a.m. in Tokyo, paring this week's loss to 0.8%. All markets open for trading climbed, except China.
Markets ended with healthy gains as Bulls cheered value buying in the IT stocks. All the key sectoral indices except for the FMCG index ended in green. Even the Mid-Cap and the Small-Cap indices ended higher adding over 0.5% each. Realty stocks were the pick of the day after inclusion of construction major Unitech in Nifty-50 on 5th October. IT stocks were in limelight on back of value buying in this sector. The BSE 30-share benchmark Sensex gained 109 points to close at 15614. NSE Nifty ended 32 points higher to close at 4528.
Diamond Cables surged by over 2% to Rs360 after the company announced that they have secured orders for 2750 Transformers. The scrip touched an intra-day high of Rs374 and a low of Rs350 and recorded volumes of over 47,000 shares on NSE.
IPCA Labs ended flat at Rs688. The company announced that it has acquired Australian Dossier Registration Company. The scrip touched an intra-day high of Rs700 and a low of Rs681 and recorded volumes of over 5,000 shares on NSE.
Aurobindo Pharma edged higher by 0.6% to Rs617. The company announced that they have secures UK-MHRA Clearance for unit 1. The scrip touched an intra-day high of Rs624 and a low of Rs608 and recorded volumes of over 31,000 shares on NSE.
Dr Reddy’s Lab slipped 1% to Rs641. The company announced that they have received USFDA approval for Ranitidine (Zantac). The scrip touched an intra-day high of Rs653 and a low of Rs639 and recorded volumes of over 1,00,000 shares on NSE.
ABG Shipyard surged by over 3% to Rs618 after the South Asian nation's biggest shipbuilder outside government control said it plans to add four dockyards to repair vessels as demand for sea transport rises in the country. The scrip touched an intra-day high of Rs623 and a low of Rs599 and recorded volumes of over 45,000 shares on NSE.
Lupin gained by 2.5% to Rs610 after the company announced that they have won Ramipril product patent challenge at Federal circuit. The scrip touched an intra-day high of Rs615 and a low of Rs599 and recorded volumes of over 1,00,000 shares on NSE.
BPCL gained by 0.2% to Rs310 after the oil refiner and Videocon Industries Ltd would acquire stake in a Brazilian oil exploration company owned by Canada's EnCana Corp. The scrip touched an intra-day high of Rs316 and a low of Rs306 and recorded volumes of over 2,00,000 shares on NSE.
Banking stocks were in limelight after RBI’s Deputy Governor Leeladhar said that Indian Bank’s are not affected by US Subprime. SBI gained by 3% to Rs1674, HDFC Bank advanced by 2.6% to Rs1213. However, ICICI Bank pared gained on back of profit booking, the scrip was down by 0.2% to Rs884.
Cement stocks also ended with smart gains. ACC surged by over 2.5% to Rs1128, Kesoram Industries gained 1.7% to Rs537, Ambuja Cement advanced by 1.7% to Rs144 and JP Associates added 1.2% to Rs959.
Power stocks traded firm for third straight session. Tata power gained 2.2% to Rs750, PFC surged by over 3.5% to Rs199 and NTPC added 0.8% to Rs191.
Realty stocks were also trading firm on back of gains in the index heavyweight, Unitech surged by over 7% to Rs280 after The National Stock Exchange (NSE) will replace IPCL in the NIFTY with real estate major Unitech, with effect from October 5. Mahindra Gesco edged higher by 7% to Rs563 and Parsvnath gained 1% to Rs322.
IT stocks were back in action after being on the side lines. Satyam Computer gained by 1.6% to Rs434, Wipro was up by 1% to Rs456, Infosys advanced by 1% to Rs1834 and Tech Mahindra surged by 2.1% to Rs1309Stocks in News:
United Phosphorus' Board will meet today, to consider raising of further resources to finance capital expenditure and for expansion of business.
IMP Powers will consider placement of instruments convertible into equity shares to promoters and institutions.
Meghmani Organics could gain on reports that it is looking at acquiring an agro chemical company in Latin America.
Helios & Matheson is also looking at an acquisition in the $50-100mn range, says a financial daily.
Vyapar Industries will consider the proposal of issue of convertible warrants on preferential basis.
M&M is likely to be in action amid reports that it has pulled out of the race to buy Ford's luxury brands - Jaguar and Land Rover.
L&T may also attract some attention as it has reportedly tied up with Godrej Properties for the Dharavi project.
Oil PSUs will be in focus amid growing talk of a fuel price hike.
Cement companies will also hog the limelight as a newspaper report says local companies may go in for a price hike of Rs3-5 per bag.
Godfrey Phillips is another stock to keep an eye on amid reports that US-based Philip Morris is likely to buy out the KK Modi Group's stake in the company.
Fund Activity:
FIIs were net buyers of Rs62.9mn (provisional) in the cash segment on Thursday and the local institutions pulled out Rs359.1mn. In the F&O segment, foreign funds were net buyers of Rs5.26bn.
On Wednesday, FIIs were net buyers to the tune of Rs2.82bn in the cash segment. Mutual Funds were net buyers of Rs733mn on the same day.
Major Bulk Deals:
Citigroup has sold Aptech; Reliance MF has bought CCL Products while Citigroup and Bear Stearns have sold it; Bear Stearns has picked up Ganesh Forgings; Citigroup and Bear Stearns have purchased Karuturi Networks; Lotus Global has sold Kashyap Tech; Morgan Stanley has sold Nagarjuna Constructions; CLSA has bought NIIT while Lehman Bros has sold it; Reliance MF has picked up Pearl Fashion while Morgan Stanley has sold the stock; Merrill Lynch has sold Punj Lloyd; Bear Stearns has sold Royal Orchid Hotels while Sundaram MF has bought it; Morgan Stanley has sold SRF; Lehman Bros has picked up Triveni Engineering; Lotus Global has purchased Vyapar Industries; BNP Paribas has bought XL Telecom.
Upper Circuit
MIC Electronic, Bayer Corp, Marksans, Aftek, Tourism Finance, Bag Film, Aarti Industries, Karuturi Network, Ion Exchange and BF Utilities.
Lower Circuit:
Carol Info and Usher Agro .