ONGC, Mundra Port, TCS, Sintex
Thursday, March 03, 2011
It was the fourth consecutive day of positive close for market as benchmark indices managed to close modestly higher after a choppy trade. There was sharp intraday recovery from the lower level in the first half on the back of news that Gaddafi has accepted peace plan to end Libyan crisis. However, later on the news of fresh air strike on Brega oil terminal in East Libya led to a sharp spike down. Finally Sensex closed at 18489, up 43 points while Nifty ended at 5536, up 14 points. BSE mid-cap and small-cap indices gained 0.3% and 0.2% respectively. Capital Goods stocks led from the front, supported by Auto shares. European markets were trading with gains of nearly a percent while US stock futures were up about two third of a percent ahead of reports on jobless claims, nonfarm productivity and ISM non-manufacturing composite index.
Asian markets gain on upbeat US economic data, bargain hunting
Asian markets gained modestly today as positive closing on Wall Street in the previous session despite crude oil prices surging past the $100 a barrel mark on better than expected economic data triggered a wave of bargain hunting. In overnight trades, the US stocks ended mostly higher as the Fed's Beige Book stated that economic activity continued to expand at a modest to moderate pace in January and early February but also noted that costs are rising for manufacturers and retailers in most areas. However, the real turner proved to be monthly data out from payroll processor ADP, which indicated that US private companies added 217,000 jobs in February. The Dow edged up by 8.78 points or 0.1% to close at 12,066.80.
IPO opens for bidding on 8 March 2011
Inner-wear manufacturer Lovable Lingerie has fixed a price band of Rs 195-205 per share for its initial public offering (IPO) which opens for bidding on 8 March 2011. The IPO which closes on 11 March 2011 would constitute 27.08% of the post issue paid-up capital of the company. The company plans to raise up to Rs 93.28 crore by offering 45.50 lakh shares through the forthcoming IPO.
Hopes for financial sector reforms and the latest data showing easing of food inflation in mid-February 2011 and the services activity expanding at its fastest pace in three months in February 2011, helped Indian stocks eke out small gains in a highly volatile trading session. The BSE 30-share Sensex rose 43.26 points or 0.23%, up 236.14 points from the day's low and off 113.81 points from the day's high. The BSE Sensex and the 50-unit S&P CNX Nifty attained two-week closing highs.
Cairn India and its JV partners are set to undertake US $44mn drilling campaign in the eastern offshore Ravva Field of K-G Basin.(ET)
BHEL bags Rs32.2bn order for thermal power in west Bengal.(ET)
Tata Steel has increased its stake in Riversdale Mining to 27.14 % from 24.2 % at an investment of around Rs5bn. (BL)
We saw the Indian markets reverse sharply on the Budget Day after notching strong gains initially. That performance led to some skepticism about the Finance Minister's Budget proposals, especially on fiscal deficit, spending and subsidies. But, the bulls had other ideas and even the bears had to fall in line once the rally gathered pace today.
"Truth will rise above falsehood as oil above water." - Miguel de Cervantes.
The bitter truth is that crude prices can upset the Budget estimates, which effectively means that the Finance Minister’s expectations on the fiscal front may not hold water. Now at some point, the Government will have to take a call on the promised diesel deregulation. That will in turn push inflation higher. Bear in mind, five states go to polls in the next few weeks. So, it would be all the more difficult for UPA II to decide on the sensitive issue.
Political tensions and inflation worries take prices higher
Gold prices struck new all time high on Wednesday, 02 March 2011 at Comex. Geo-political tensions, higher inflation worries, and comments by the Fed Chairman took prices higher to fresh highs. Silver continued to sport three-decade high figures.
Inventories register unexpected drop during last week
Crude prices surged higher on Wednesday, 02 March 2011 at Nymex. Prices went up as energy department reported unexpected drop in crude stockpiles for last week. Mid East geo political tensions further aided in rising crude oil prices.
The market may open lower as crude oil prices held near 2-1/2 year peaks on Thursday as worries about supply disruption persisted given ongoing unrest in Libya. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 71 points at the opening bell. India imports more than 70% of its oil requirement. US crude oil futures were up 38 cents or 0.37% at $102.61 a barrel. Asian stocks were firm.