Bulls stand strong

Major headlines

Gujarat Pipavav makes a strong debut

Food inflation rises to 11.47%

August car sales up 33%

Indian indices



Bulls continued its strong run in all the four trading sessions of the week, which helped the domestic markets to attain new highs. The markets rose in today’s trade, extending a 2-1/2 year high as financial, telecom, Tata Group and select auto companies' shares witnessed strong buying. The Nifty managed to hold its 5600 levels for the third consecutive day. Easing concerns over Europe’s budget deficit crisis also boosted investor confidence and supported the market rally.

Hindustan Unilever, a unit of the world’s second-largest consumer-goods maker, climbed to a nine-month high. Mahindra & Mahindra, the nation’s biggest sport-utility vehicle and tractor maker, advanced by 3.2% after the data showed a rise in the company’s total domestic passenger car sales by 33.24% in August 2010. Fertiliser stocks continued to rise owing to good monsoon and hopes of allocation of extra natural gas from the government.

India's food inflation rose to 11.47% for the week ended August 28, 2010 compared to 10.86% seen in previous week.

The Sensex started the session mere three points higher at 18669 (day’s low). The index soon started to move northward tracking positive Asian markets. The index remained in a narrow range throughout the morning trades. In afternoon trades, the Sensex pared some of its gains as the European markets opened lower. However, in later trades, the Sensex started to extend gains and hit the day’s high of 18823 as the European markets turned positive and US stock futures traded higher.

At the finishing line, the Sensex shut shop at 18800, 133 points higher. The Nifty closed at 5640, up by 32 points.

Market Outlook: We have trade balance and jobless claims data in the US today. India’s festive celebrations begin tomorrow (September 10, 2010), with a religious holiday; the financial markets will remain closed.

Global signals

European markets erased all its early losses and turned positive as strong banking and mining stocks offset retail and telecom stocks.

All the major Asian indices closed in the positive zone except Shanghai Composite.

The US stock index futures signal higher opening on the Wall Street today. Weekly jobless claim and monthly international trade data will be eyed.

Market sentiment

The market breadth was positive as gaining stocks outpaced the falling ones. Out of the 3,050 stocks traded on BSE, 1,571 rose while 1,365 declined. Hundred and fourteen stocks remained unchanged.

Sectoral & stock screening

Of the 13 sectoral indices on the BSE, 11 rallied while the rest two posted losses. BSE Bankex was the best performer, shot up by 2.19%, followed by the BSE Capital Goods (CG) that surged by 0.82% and BSE PSU that was up by 0.74%. Rest of the gaining sectors were up in the range of 0.04% to 0.59%. On the other side, BSE Oil & Gas and BSE Health care (HC) were the losing sectors, down by 0.27% and 0.16% respectively.

In 'A' group stocks, top three gainers - KSK Energy Ventures gained the most by 6.52%, followed by Bank of India that surged by 5.47% and Ispat Industries rose by 5.16%. Top three losers - Gujarat State Petronet lost the most by 2.41%, followed by Ashok Leyland that fell by 2.17% and Mahindra & Mahindra Financial Services declined by 1.98%.

Viewing volumes

Leading integrated steel makers - Ispat Industries was traded the most, with over 1.56 crore shares changing hands on the BSE, followed by public sector bank - IDBI Bank (0.46 crore shares), industrial finance company - IFCI (0.28 crore shares), largest basmati rice processing and marketing company in the globe - REI Agro (0.27 crore shares) and sugar major- Shree Renuka Sugars (0.24 crore shares).