Markets shut with modest gains

Major headlines

Mahindra Satyam slumps on delisting ADRs from NYSE; the stock ends 3.65% lower

Omaxe enters infrastructure sector; the stock closes higher by 1.70%

Shipping Corporation of India, Jiangsu Eastern ink contract; the stock ends 0.31% higher



Indian indices

The optimism still remains, with the domestic markets maintaining its upward trend in today’s trade. The markets ended the first day of the expiry week with modest gains though the closing was off the day’s high. It was a quiet session dotted by some volatility due to profit taking ahead of the expiry of derivative of September series.

Mahindra Satyam closed 4% lower, as the company will delist its American depositary receipts from the New York Stock Exchange. Tata steel was up on hopes of a further hike in the prices. The buying was seen in oil & gas exploration, metal, realty, power, capital goods and select healthcare companies' shares along with State Bank of India, Bharti Airtel, Tata Motors and Mahindra & Mahindra. The Nifty surpassed 6050 levels as well during the day, but sell-off in fast moving consumer goods (FMCG), technology, cement and private financial companies' shares dragged the index below that level in the last couple of hours.

Tracking the upbeat global improvements, the Sensex commenced the session with a positive bias, 37 points up at 20082 (day's low). In the initial trades, the index gained around 222 points and touched the day's high of 20268. The Sensex soon erased some of its gains from the day's high and traded in the positive terrain throughout the morning session. In the afternoon trades, the positive opening in the European markets, helped the Sensex to maintain its upmove. In late trades, the selling in FMCG and information technology (IT) stocks led the Sensex to wipe out some of its gains.

At the closing point, the Sensex shut above 20100 at 20117, 72 points higher. The Nifty closed below 6050 at 6036, 17 points up.

Bond and Rupee update: Indian Bonds dropped for the first time in six days as yields at the lowest levels in more than a month deterred buyers. The rupee strengthened to 45.05, its highest level in four-and-half months today, riding a wave of foreign buying in the local stocks.

Market Outlook: There are no major data in the US tonight. The Indian indices have rallied close to 12% so far in September, recent outperformance versus the emerging markets, monthly derivatives expiry on Thursday (September 30, 2010) can weigh on the markets.

Market sentiment

The market breadth remained neutral. Out of the 3,097 stocks traded on the BSE, 1,495 advanced while 1,475 fell. Hundred and twenty-seven stocks traded unchanged.

Sectoral & stock screening

Of the 13 sectoral indices, nine ended in the green while four closed in the red. BSE Metal was shining the most, gained by 2.15% as copper surged to a five-month high in Shanghai, followed by BSE Consumer Durables (CD) that rose by 1.64% and BSE Realty surged by 1.23%. On the flip side, BSE FMCG was the major loser, down by 0.67%, followed by BSE IT that declined by 0.48%

Among 'A' group stocks, the top three gainers were - India Infoline gained by 4.76%, Sterling Biotech surged by 4.39% and Videocon Industries rose by 4.14%. The top three losers were - Mahindra & Mahindra Finance slipped by 3.54%, Koutons Retail fell by 3.45% and Nagarjuna Construction Company declined by 2.72%.

Viewing volumes

Leading integrated steel makers - Ispat Industries saw highest trading, with over 0.63 crore shares changing hands on the BSE, followed by industrial finance company - IFCI (0.45 crore shares), India's second largest developer - Unitech (0.43 crore shares), largest basmati rice processing and marketing company - REI Agro (0.31 crore shares) and wind turbine major- Suzlon Energy (0.26 crore shares).

Global signals

The European markets were modestly higher in today’s trade, spurred on by a positive mood in Asia and taking some cheer from a strong session on the Wall Street Friday (September 24, 2010).

The Asian markets ended higher today, as traders were boosted by a rally on the Wall Street while Japanese exporters were higher on hopes for further measures to cool the soaring yen.

The US stock futures point to a firm opening on the Wall Street tonight.