Heal the World, make it a better place, for you and for me and the entire human race - Michael Jackson.
The bulls will hope to Just Beat It (read bears) at start with global cues being brighter. Wall Street has led a global rebound after data showed that the US economy shrank less than expected in the first quarter. They have been asking the bears for sometime - Why You Wanna Trip On Me? A caveat though: there is no great Thriller in store as many things, to put it bluntly remain Bad.
Consider this: FIIs have been net sellers now for eight consecutive trading sessions. Crude oil is above $70. Toyota's new boss warns of two more tough years. Core consumer prices in Japan chalk up another drop, fueling further fears of deflation. South Korea’s surplus declines in May.
Back home though, there is some relief from the heat. After a delayed start, the crucial southwest monsoon’s finally here. Hopefully, it will be well spread out and spaced out. We expect the global rally to rub off on local sentiment today. But, early gains may not sustain as uncertainty still prevails over a spate of key events like the budget and earnings. Don’t take undue risks at this juncture.
At the same time, Don't Walk Away from the market completely, as there is nothing to panic about. The medium to long term outlook for India is encouraging. If you are too uncertain, remember, You are not Alone! May be you should stay on the sidelines for a while before taking a call.
FIIs were net sellers in the cash segment on Thursday at Rs14.83bn while the local institutions pumped in Rs11.18bn. In the F&O segment, the foreign funds were net sellers at Rs14.17bn. On Wednesday, FIIs were net sellers at Rs6.01bn in the cash segment. Mutual Funds were net buyers of Rs3.89bn on the same day.
Results Today: BEML, Deccan Chronicle, Glenmark Pharma, Gujarat State Petronet, Jai Corp., Max India, SpiceJet, Tata Motors, TVS Motor and Zee Entertainment.
US stocks rallied on Thursday, led by commodity related shares after crude oil spiked above $70 per barrel. Bond yields fell after a strong response to the latest auction by the Treasury Department. Investors snapped up a variety of shares hit in the recent selloff - including commodity, consumer, homebuilding and tech issues. Stocks also gained as better-than-estimated earnings at Bed Bath & Beyond lifted retailers and Lennar Corp. pushed homebuilders higher.
The Dow Jones Industrial Average gained 172 points, or 2.1%, to 8,472.40. The Dow rose as much as 190 points earlier in the afternoon. The S&P 500 index was up 19 points, or 2.1% at 920.26, and the Nasdaq Composite index added 37 points, or 2.1%, to 1,829.54.
Gains were broad based with 29 out of 30 Dow issues rising.
US stocks have dipped over the last week as the more than three-month old rally lost steam. But that selloff seemed to draw new buyers on Thursday, thanks in part to strong demand for Treasury's $27bn seven-year note auction, which sent bond yields lower. Some end-of-quarter buying also helped.
Worries that rising bond yields - tied to mortgage rates - could derail a recovery has put some caution into the stock market after a three-month advance that lifted the S&P 500 index 40% off of 12-year lows.
The Federal Reserve Chairman told a House committee that he did not pressure Bank of America CEO Ken Lewis to complete his firm's purchase of Merrill Lynch, as Lewis testified two weeks ago. Bernanke also denied having asked former Treasury Secretary Henry Paulson to act on his behalf.
Bed Bath & Beyond reported higher quarterly earnings late on Wednesday that topped expectations, as cost cutting countered the impact of slowing demand. Shares gained 9.5% in active Nasdaq trading on Thursday.
A number of other retailers rose too, including Home Depot and Lowe's.
Homebuilder Lennar reported a larger-than-expected quarterly loss versus a year ago and a smaller-than-expected drop in revenue. However, the company reported a rise in new home sales and orders versus the first quarter, sending its shares up 17.5%.
Toll Brothers, Centex and KB Home were among the other gainers in the sector.
The number of Americans filing new claims for unemployment rose 15,000 to 627,000 last week, surprising economists who thought claims would fall to 600,000. Continuing claims, a measure of Americans receiving benefits for a week or more, rose to 6,738,000, after dropping in the previous week.
Another government report showed the first-quarter GDP growth shrank at a slower pace than initially thought. GDP shrank at an annual rate of 5.5% versus the initially reported 5.7% decline. Economists expected no change.
Treasury prices rallied, lowering the yield on the benchmark 10-year note to 3.54% from 3.68%.
US light crude oil for August delivery rose $1.56 to settle at $70.23 a barrel on the New York Mercantile Exchange after militants attacked a Royal Dutch Shell Plc pipeline supplying an export terminal in Nigeria, Africa’s largest producer.
COMEX gold for August delivery rose $5.10 to settle at $939.50 an ounce.
In currency trading, the dollar gained versus the euro and fell against the yen.
European shares pared some of the previous session's strong gains, with banks pacing the decline. The pan-European Dow Jones Stoxx 600 index fell 0.9% to 204.43. Germany's DAX index declined 0.7% to 4,800.56, while the French CAC-40 index lost 0.7% to 3,163.10 and the UK's FTSE 100 index was down 0.6% to 4,252.57.
Markets ended with modest gains on Wednesday. After a sluggish start and a range bound first half, key indices perked up in the second half as the bulls stepped on the gas. Power, Capital Goods, Pharma and the Realty stocks stock led from the front. However banking stocks were under pressure. The Mid-Cap and the Small-Cap indices outperformed the benchmark indices.
The BSE Sensex gained by 93 points to end at 14,422 after touching a high of 14,480 and a low of 14,207. The index had opened at 14,376 against the previous close of 14,324. The NSE Nifty gained 46 points or 1% to shut shop at 4,293.
Among the BSE Sectoral indices BSE Power index was the top gainer gaining 2.8%, followed by the BSE Capital Goods index up 2.5%, BSE Pharma index up 2.3% and BSE Realty index up 2%. However, the BSE Bankex index ended in the red down 0.12%.
Even the BSE Mid-Cap index gained 2.3%, BSE Small-Cap index up 2.2%.
Shares of Educomp shot up by over 11% to Rs3427 after Pearson and Educomp announced that they have established a 50:50 joint venture to offer vocational and skills training in India. As part of the agreement, Pearson would acquire a 50% ownership stake in Educomp's existing vocational training business.
The joint venture will provide vocational training to students and professionals across a range of industries including financial services, retail and construction. It will have a focus on English language training, which is often critical to an individual's employment prospects. Training will be delivered both online and through Educomp's network of centres, using Pearson's educational content, technology and related services.
Shares of Bajaj Auto were in top gear, the stock surged by over 2.5% to Rs960 after the Reserve Bank permitted FIIs to purchase the shares of the company as their holding in Bajaj Auto has gone below the trigger limit of 24% following the company's demerger of two non-banking finance companies.
"The restriction placed on the purchase of shares of Bajaj Auto on behalf of FIIs may be treated as withdrawn," RBI said in a release.
Earlier, RBI had asked FIIs not to purchase any further shares in Bajaj Auto as their holding had touched 24 per cent.
Shares of ABB surged by over 4.5% to Rs754 after the company announced that it won orders worth Rs2.2bn from Tata Projects Ltd to provide power products and solutions for a super-critical coal-fired power plant under construction in the southern India state of Andhra Pradesh.
Shares of Nagarjuna Const advanced by over 3.5% to Rs125 after the company announced that the board would meet on June 29 to consider private placement.
Shares of Andrew Yule were locked at 5% upper circuit to end at Rs51.10 after reports stated that government has given approval to the company for its disinvestment program. The scrip touched an intra-day high of Rs51.10 and a low of Rs51.10 and has recorded volumes of over 7,000 shares on BSE.
Shares of Renaissance Jewelry further extended gains and rallied by over 7% to Rs49.9. The stock sky rocketed by over 58% in the last four trading sessions.
The stock hit an intra-day high of Rs54 and an intra-day low of Rs48. The total traded quantity on the counter had exceeded over 0.5mn equity shares as compared to 0.2mn shares traded on Tuesday and mere 58,000 shares on Monday.
Renaissance Jewelry had hit a 52-week high of Rs68.35 on June 23, 2008 and 52-week low of Rs18.15 on March 05, 2009.
Shares of Torrent Power rallied by over 16% to Rs164 on the back of unusual volumes witnessed in the counter. The stock has hit an intra-day high of Rs169 and an intra-day low of Rs141. The total traded quantity has exceeded the average of 20 days traded volumes. Total volumes traded were ~2.8mn equity shares on the NSE.
The stock had hit a 52-week high of Rs177 on June 12, 2009 and 52-week low of Rs50 on October 28, 2008.
The total traded quantity has exceeded the average of 20 days traded volumes. Total volumes traded were ~2.8mn equity shares on the NSE.