Markets have a quite session

Major headlines

Food inflation rises to 10.86%

Suzlon Energy bags 30MW order; the stock ends 2.63% lower

Steel Strip Wheels hits 52-week high on order win; the stock closes 5.52% higher



Global signals

European shares edged higher on Friday (September 03, 2010) after gains in the United States and Japan but traders were cautious ahead of a key US labour market report.

All the major Asian indices ended in the green on Friday except Shanghai Composite that closed marginally lower by 0.01%.

The US stock index futures indicate lower opening on the Wall Street on Friday. The investors will keep an eye on the unemployment data for the month of August.

Indian indices

The Indian markets closed the last day of the week on a flat note with a negative bias. It was a rangebound session without there being much movement on either side despite strength seen in the European markets. The Sensex traded in a very narrow range of about 100 points in today’s session. The broader market outperformed the Sensex. Most Indian stocks climbed amid expectations that local companies will benefit from strengthening economic growth. However, the investors were cautious ahead the US jobs data, which will be released later today. A slew of better-than-expected data from the US and China this week fuelled speculation that the global economy is recovering.

India’s food inflation rose to 10.86% for the week ended August 21, 2010 as compared to 10.05% in the previous week.

Infosys Technologies, a software exporter that gets two-third of its sales from North America, gained by 0.8% and Bharti Airtel, the nation’s largest mobile-phone operator, rose to a nine-month high - the shares were the best performer on the benchmark stock index. However, the other heavyweight, Reliance Industries dipped over 1%.

The 30-share index - Sensex started the session at 18238, same levels of the previous session’s closing. However, the index rose touching the day’s high of 18316 in initial trades. The Sensex traded in a very narrow range throughout the morning session as the Asian markets did not show much movement in there trade. The Sensex continued its lacklustre trade in the afternoon session despite of positive opening in the European markets. However, in the last hour of trade, the index erased its early gains and slipped in to the red hitting the day’s low of 18206. In most part of the day, the index hovered around the previous day’s closing levels.

At the closing bell, the Sensex closed at 18221, 17 points lower. The Nifty shut at 5479, down by 7 points.

Bond market update: India’s 10-year bonds fell for a third day on speculation that some investors will reduce holdings to raise funds for purchases at a government debt auction today. India’s rupee headed for the biggest weekly gain in more than a month on speculation that accelerating economic growth will prompt investors to increase purchases of the nation’s stocks.

Market Outlook: Tonight in the US, we have most important data release of the session, and the week, and the month - the unemployment data and Services PMI.

Market sentiment

The market breadth was positive as advancing stocks outnumbered the declining ones. Out of the 3,050 stocks traded on BSE, 1,661 rose while 1,246 fell. Hundred and forty-three stocks remained unchanged.

Sectoral & stock screening

Among the 13 sector indices on the BSE, ten closed in the green while three ended in the red. BSE Realty led the chart of toppers with gains of 1.25%, followed by BSE Auto that surged by 0.90% and BSE Health Care (HC) that rose by 0.58%. On the other hand, BSE Metal fell the most with losses of 1.09%, followed by BSE Oil & Gas that declined by 0.55% and BSE Capital Goods (CG) that was down by 0.01%.

On 'A' group stocks’ front, top three gainers - Godrej Consumer Products posted gains of 7.03%, followed by BEML that surged by 6.80% and Rashtriya Chemicals that rose by 5.30%. Top three losers - Hindustan Petroleum Corporation declined by 3.52%, Suzlon Energy slid by 2.63% and Jet Airways fell by 2.33.

Viewing volumes

Wind turbine major- Suzlon Energy was traded the most with over 1.36 crore shares changing hands on the BSE for the second straight day, followed by pharma company - Piramal Healthcare (0.87 crore shares), leading integrated steel makers - Ispat Industries (0.69 crore shares), India’s second largest developer - Unitech (0.33 crore shares) and industrial finance company - IFCI (0.24 crore shares).