Post Market Commentary - Dec 14 2009

Today's major news

Reliance Infrastructure bags Rs1,000 crore Kandla-Mundra project: the stock closed the day 0.76% lower.

Jaihind Projects bags order worth Rs24.53 crore; the stock rises by 0.58% for the day.

Bharat Heavy Electricals Ltd (BHEL) talking to Larsen & Toubro, Pipavav to revive offshore rig business; BHEL jumps 1.94% for the day.

HSIL eyes tile business; the stock ends 0.34% lower.

ACC inaugurates its new cement plant at Thondebhavi in Karnataka; the stock surged 5.33%.

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Post-market summary

Global signals

European stocks extended their gains for the third consecutive day, as Dubai debt fear eased, with the banking stocks witnessing maximum gains. FTSE 100 is trading 0.89% higher at the time of writing this report.

Asian indices that opened in red trimmed the morning losses, as fears of a potential debt default by Dubai that had rattled the global markets eased. SGX Nifty closed three points lower.

US stock futures also traded higher as fears of debt default by Dubai faded.

Indian indices

Taking leads from Asian markets, the Indian stock market opened in red but turned positive on news that the Abu Dhabi government has agreed to give $10 billion as emergency funds to Dubai that will go towards paying the debts owed by Dubai World conglomerate.

However, at noon, the sentiment turned negative leading the Sensex to trim its morning gains. Whipsawing 227 points the bellwether’s day high was 17275 and the low was 17048. The index closed 0.13% or 21 points lower while Nifty closed 12 points down.

Sensex sentiment

Of the 2,901 stocks traded on the BSE, 1,670 stocks declined, whereas 1,167 stocks advanced. Sixty four stocks closed unchanged.

Sectoral & stock screening

Information technology (IT) scrips drew investor interest with the BSE IT topping the chart with gains of 1.16% to be followed capital goods stocks (BSE CG up by 0.95%). Fast moving consumer goods, consumer durables and banking stocks were least favoured with the BSE FMCG at the bottom of chart with losses of 1.43% to be followed by BSE CD that declined by 1.18%. The BSE Bankex was down by 1.13%

On stocks’ front, MMTC surged the most by 5.85% followed by ACC that rose by 5.33%. Gujarat NRE Coke, UltraTech Cement and Ranbaxy Laboratories ended the day with gains of over 4% each. Among losers, Oriental Bank of Commerce slid the most by 5.46%, followed by IVRCL Infrastructure that fell by 4.44% and Shriram Transport that shed 3.95%.

Viewing volumes

Realty major Unitech was the most traded share with over 0.73 crore shares changing hands on the BSE to be followed by Suzlon Energy (0.63 crore shares), IFCI (0.61 crore shares), GVK Power & Infrastructures (0.41 crore shares) and Ispat Industries (0.35 crore shares).