Market attains 1-1/2 month high

Today's major news

Reliance Industries - Reliance Natural Resources may sign gas pact next week

Government postpones fuel price hike

American Towers in talks for Reliance Communications arm



Global signals

European shares erased its morning losses and turned positive as banks trimmed earlier losses. Spain unveiled results of bill auction stating that it sold 5.2 billion euros in 12-month and 18-month bill auction. As of writing this report, FTSE 100 was trading at 0.45% higher.

All the major Asian indices closed in the positive territory Seoul Composite (Kospi) index closed marginally lower. SGX Nifty closed 22.50 points higher.

The US stock index futures signal marginally higher opening on the Wall Street on Tuesday. Investor will keep an eye on Empire Manufacturing Survey for June.

Indian indices

Moody Ratings downgraded sovereign rating for Greece’s to junk status on Monday (June 14, 2010), dropping it four notches from A3 to Ba1. The Indian indices shrugged off the Greece’s debt concerns registering to fifth straight day gains. The encouraging advance tax numbers of top Indian companies and buying in PSU and metal stocks helped the market to edge higher. PSU stocks hog limelight after the government approved 20% stake sale in Hindustan Copper and 10% in Coal India. Anil Dhirbhai Ambani Group (ADAG) stocks surged on the second straight day.

Muted global markets and Moody’s downgrade of Greece’s credit rating set the pitch for an unappetising start. The Sensex began the session 17 points higher at 17355 and soon turned negative. The index hovered between the negative and positive territory in the morning trade. The Sensex shifted back to green zone in afternoon session after European markets turned positive erasing initial losses. Late rally in realty and ADAG stocks led the Sensex to hit the day’s high of 17442. During the day, the Sensex and the Nifty touched 1-1/2 month high.

The Sensex gained 796 points or 4.8% and the Nifty added 235 points or 4.7% in the last five trading sessions.

At finishing line, the Sensex shut shop at 17413, up by 75 points and the Nifty closed above 5200, at 25 points higher at 5222.

Market sentiment

The market breadth was positive. Of the 2,961 stocks traded on the BSE, 1,650 stocks gained, whereas 1,186 stocks declined. Hundred and twenty five stocks closed unchanged.

Sectoral & stock screening

Of the 13 sector indices, nine closed higher while four closed lower. Among gainers, BSE Realty surged the most by 2.60% and BSE PSU advanced by 1.61%. On the other hand, BSE Oil & Gas was hit the most by 0.55% and BSE information technology (IT) slid by 0.54%.

In ‘A’ group stocks, the top three gainers - MMTC up by 20.86% on bonus and stock split plan, Reliance Natural Resources Ltd (RNRL) surged by 9.77% on news that the company may sign gas pact with Reliance Industries next week and Hindustan Copper rose by 9.10% after the government approved fresh equity sale. The top three losers - Hindustan Petroleum Corporation down by 6.44%, Bharat Petroleum Corporation lost by 5.55% and Indian Oil Corporation fell by 5.07%. The empowered group of ministers (EGoM), which was supposed to take a decision on fuel price hike, has been postponed indefinitely. The news led the oil & gas stocks to decline.

Viewing volumes

ADAG firm - RNRL saw highest trading with over 5.52 crore shares changing hands on the BSE, industrial finance company - IFCI (1.11 crore shares), wind turbine major - Suzlon Energy (1.03 crore shares), ADAG power utility - Reliance power (0.90 crore shares) and India’s second largest developer - Unitech (0.65 crore share).