Markets hit 2-1/2 year high

Today's major news

KSK Energy Ventures lightens on robust Q1 results; the stock closes 0.65% higher

Areva T&D gets contract from Power Grid Corporation of India; the stock ends 2.06% up

Reliance Capital slips on poor Q1 numbers; the stock closes down 1.71%



Global signals

European shares rose on Monday (August 09, 2010), rebounding from the previous session's sharp losses, with commodity stocks leading the gainers, supported by stronger metal and oil prices.

The major Asian indices closed the session in the positive territory except Nikkei and Straits Times. SGX Nifty closed 32 points higher.

The US stock index futures pointed a higher opening at the Wall Street on Monday. Hewlett-Packard (HP) and Apple will be in focus.

Indian indices

It was a good day for the domestic markets as the bulls managed to keep up their upper trend throughout the day. The markets ended the first day of a new week on a reasonably strong note after a firm session of trade, which was helped by buying in most of the sectors. The benchmark indices advanced to a 30-month high level, led by real estate developers and automakers, amid expectations that rising incomes and the nation’s economic growth will boost the profitability. Strong opening of the European markets also supported the domestic indices to carry on its momentum.

Indiabulls Real Estate climbed after beating six other bids to buy land in central Mumbai. Carmaker Tata Motors continued to edge higher ahead of its quarterly earnings report tomorrow and record domestic car sales in July. However, index heavyweight Reliance Industries continued its downward journey as its share price breached the crucial Rs1,000 level mark.

The Sensex started the session on a flat note at 18141, mere three points down. The Sensex soon turned to the positive terrain. The index continued to trade firm throughout the morning session. The Sensex gathered momentum in the afternoon session as the Asian indices pared its early losses and also strong opening by the European markets. In the last hour of trade, the index touched the 30-month high of 18309 as buying intensified in the realty, consumer durables, banking and metal stocks.

At the closing bell, the Sensex closed at 18287, up 144 points. The Nifty shut shop at 5486, 47 points higher.

Bond Market Update: India’s 10-year bonds climbed for a second day, pushing their yield to the lowest level in more than a week, on speculation that the central bank will refrain from increasing interest rates at its policy review next month. India’s rupee rose towards a seven- week high on speculation that an improving economy and rising interest rates will spur overseas demand for the nation’s assets.

Market Outlook: With no major data releases tonight, in India everyone will be looking forward to the index of industrial production (IIP) numbers, which are to be released on Thursday (August 12, 2010), and Tuesday (August 10, 2010) Federal Reserve meeting in the US.

Market sentiment

The market breadth was robust as advancing stocks outnumbered the declining ones. Of the 3,072 shares traded on the BSE, 1,958 shares advanced whereas 1,002 shares declined. Hundred and twelve shares traded unchanged.

Sectoral & stock screening

Of the 13 sectoral indices on the BSE, 11 rallied while the two posted losses. BSE Realty shot up by 4.47%, followed by the BSE consumer durables (CD) that surged by 2.40% and BSE Metal was up by 1.52%. Rest of the gaining sectors were up in the range of 0.30% to 1.28%. On the other hand, BSE Oil & Gas and BSE health care (HC) were the only losing sectors, down by 0.41% and 0.01% respectively.

In ‘A’ group stocks - Tata Communications surged the most by 6.68%, followed by Educomp Solutions that rose by 6.50% and Unitech that jumped by 6.29%. On the losers’ list, Reliance Capital lost by 1.71% due to weak Q1FY2011 results, followed by Financial Technologies that slid by 1.53% and Glaxosmithkline Consumer that fell by 1.27%.

Viewing volumes

India's second largest developer - Unitech was the most traded with over 0.93 crore shares changing hands on the BSE, followed by industrial finance company - IFCI (0.63 crore shares), India's biggest basmati rice player - REI Agro (0.42 crore shares), wind turbine major - Suzlon Energy (0.18 crore shares) and Anil Dhirubhai Ambani Group - Reliance Natural Resources (0.16 crore shares).