Sensex ekes out modest gains

Today’s major news:

Hindalco Industries Q1 net profit up 11% yoy; the stock ends 0.64% higher

Strides Arcolab gets MHRA nod for Brazilian unit; the stock closes 1.71% higher

Tulip Telecom inks pact with Qualcomm Inc; the stocks ends 0.30% up



Global indices:

The European equities retreated from a three-month peak in the early trades on Tuesday (August 03, 2010) as investors took profits from the previous session's sharp bounce, while a fall in the key base metals prices dragged down the mining stocks.

The major Asian indices ended mixed, as China's market took a breather after its recent run-up. SGX Nifty closed flat, mere 3.5 points down.

The US stock index futures pointed to a lower opening at the Wall Street on Tuesday. The investors await for the factory orders, pending home sales, vehicle sales, and personal income and expenditure data, which would define the path of the bourses and also housing data.

Indian indices:

The domestic indices closed the session marginally higher extending its winning streak on the second straight day. Despite of overnight gains in the US market, the Indian indices were hovering between the positive and negative terrain for most part of the session. Strong buying in the banking stocks and index heavyweight Reliance Industries also led to some momentum.

The Sensex began the day on a promising note at 18150, higher by 69 points tracking gains from the US markets and positive Asian markets. The index in its initial trade hit the day’s high of 18167. However, the index could not sustain those levels and lost momentum as the investors remained cautious after the Asian markets pared its gains. The Sensex traded in the narrow range throughout the morning session. The index slipped in the negative territory and hit the day’s low of 18072 in the afternoon session on account of uninspiring start by the European indices. The Sensex recovered in the late trade to close the session in the green as buying sustained in the banking stocks for the second day in a row.

At the finishing line, the Sensex shut at 18115, 34 points higher. The Nifty signed off at 5440, 8 points higher.

Market Outlook: Tonight in the US, we will see factory orders, pending home sales, vehicle sales, and personal income and expenditure data, which would define the future course of bourses. The housing data might clear clouds on double-dip recession, which is talk of the Street in the current days. Dow Chemical, Mastercard, Pfizer and Procter & Gamble will declare their results.

Market sentiment

The market breadth was positive. Of the 3,055 stocks traded on the BSE, 1,507 stocks advanced, whereas 1,430 stocks declined. Hundred and eighteen stocks remained unchanged.

Sectoral & stock screening

BSE Bankex was the topper for the second consecutive day, up 0.95%, as the investors remained upbeat on the back of good earnings reported by the banks. The BSE Oil & gas picked up momentum in today's trade, rose by 0.67%, as the crude prices surged above $81 a barrel, at a three-month high level.
The losing sectors were the BSE capital goods (CG) and the BSE fast moving consumer goods (FMCG) that dipped by 0.73% each.

Among 'A' group stocks, Petronet LNG was the top performer, rose by 5.20%, as the company signed agreements with GAIL (India), Indian Oil Corporation and Bharat Petroleum Corporation for supply of regasified liquefied natural gas from its Kochi terminal. The other gainers were Jai Corp surged by 4.89% and Sun TV Network gained by 3.88%.

Among the losers, REI Agro slid the most by 4.61%, followed by Punj Lloyd that fell by 3.36% ahead of it quarter numbers and Reliance Natural Resources that shed 3.30%, after the Securities and Exchange Board of India issued notice to the company in a matter relating to the stock market transactions.

Viewing volumes

India's biggest basmati rice player - REI Agro witnessed highest trading with over 0.63 crore shares changing hands on the BSE, industrial finance company - IFCI (0.54 crore shares), one of the leading public sector banks - Uco Bank (0.24 crore shares), integrated construction firm - IRB Infrastructure Developers (0.18 crore shares) and integrated financial services powerhouse - Indiabulls Financial Services (0.16 crore share).