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Thursday, December 01, 2011
Central banks’ move spur rally; Sensex ends 360 pts higher
Today’s big rally was led by optimism in the global indices on liquidity moves by central banks and China’s credit easing. The Sensex rose 360 points and the Nifty surged 105 points
Headlines of the day
Exports surge 10.8% in October
Food inflation at 8% versus 9.01%
India's manufacturing PMI falls to 51.0 in November
M&M posts 53% rise in sales in November
India Securities consolidated FY11 net loss at Rs714.45 cr
Nifty December 2011 futures above 4900
Turnover rises
Nifty December 2011 futures were at 4957.15, at a premium of 20.30 points compared to spot closing of 4936.85. Turnover on NSE's futures & options (F&O) segment rose to Rs 113363.99 crore from Rs 112728.47 crore on Wednesday, 30 November 2011.
ICICI Bank December 2011 futures were at 765.55, at a premium over spot closing of 762.
State Bank of India (SBI) December 2011 futures were at 1813.65, at a discount compared to spot closing of 1821.
Market scales 2 week closing high on central banks' liquidity move
Key benchmark indices gained for the second straight day to hit highest level in two weeks as world's six major central banks move to come together to tame a liquidity crunch for European banks by providing cheaper dollar funding boosted sentiment. The BSE Sensex was up 359.99 points or 2.23%, off close to 235 points from the day's high and up about 50 points from the day's low. The market breadth was positive.
Interest rate sensitive banking, realty and auto stocks gained triggered by hopes a slowing economy could prompt the Reserve Bank of India (RBI) to pause on rate increases this month. Metal stocks jumped after LMEX, a gauge of six metals traded on the London Metal Exchange surged 5% on Wednesday, 30 November 2011. Maruti Suzuki India fell on poor November sales. Index heavyweight Reliance Industries (RIL) trimmed initial gains.
Stocks to Watch Today
Jet Airways may review LCC strategy to take on IndiGo
Govt not in a hurry to reply to RIL's arbitration notice
CBI issues tax notice to Dr Reddy's
PSU cos to cut petrol rates by Rs 0.65/litre excluding tax
SAIL-led group gets a big bite of Afghan mining pie
Jain Irrigation to develop technology for dry regions
Lipitor patent expires, all eyes on Ranbaxy generic
MCL plans four transport corridors in colliery areas
PFC going slow on fund raising
Daily News Roundup - Dec 1 2011
Reliance Industries will not make fresh investments needed to revive sagging output from the D6 block until legal issues are resolved. (ET)
Public sector oil retailers have cut petrol prices by up to Rs 0.83 a litre. (BL)
Ranbaxy is expected to earn US$600mn if it manages to sell the Lipitor generic, exclusively for six months. (BS)
Kingfisher Airlines, which was supposed to pay at least its interest dues to lenders by November 30, has failed to do so rendering the account a potential non-performing asset for banks. (BL)
Sensex climbs despite dismal GDP data
Indian markets closed with decent gains at the end of a choppy session, as investors hoped that the RBI will support growth going forward by pausing its aggressive monetary tightening.
For a change, the key indices managed to shrug off the political stalemate in parliament and the ongoing war of words on FDI in retail. Not only that, they also ignored the general weakness in the overseas markets and drop in the rupee versus the dollar.
The GDP data was the main highlight of the day. The markets sort of heaved a sigh of relief that Q2 economic growth didn’t come below estimates. India’s economy grew by 6.9%, the weakest in two years, and lower than 7.7% in Q1. India’s GDP growth in the year-ago period was at 8.4%. The Finance Minister and his chief economic advisor expressed disappointment as did Moody’s. But, the key indices still managed to advance modestly.
Right Said Fed!
"To ease another's heartache is to forget one's own." - Abraham Lincoln.
Brace for a gap-up opening. No, nothing has changed on the domestic front – things continue to be quite bleak. But a coordinated move by world’s top central banks to ease market tension has sent stocks soaring world over.
‘You’re my mate and I will stand by you’ is what the Federal Reserve and five other central banks seem to be singing to one another as they got their act together to make it cheaper for banks around the world to borrow US dollars - a staple of global financial transactions.
Bullions applaud central bank's move to boost liquidity
For November, gold gains but silver drops
Precious metals ended higher on Wednesday, 30 November 2011 at Comex. Other than a weak dollar, stocks and commodities worldwide applauded news that the Federal Reserve and five other central banks together moved to ease the flow of funds to banks hit by Europe's debt crisis.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa. But bullion metals have registered increase in prices despite strong dollar in recent times and vice versa.
Crude prices at two week highs
More than expected build up in crude stockpiles keep the rise under check
Crude prices ended at highest level in almost two weeks' time on Wednesday, 30 November at Nymex. Other than a weak dollar, stocks and commodities worldwide applauded news that the Federal Reserve and five other central banks together moved to ease the flow of funds to banks hit by Europe's debt crisis. Market also was boosted as traders reacted to news that officials in China have lowered the reserve requirement for the country's banks.
But the weekly inventory report from energy department showing more than expected buildup in crude inventories for last week put a check on the price rise.
Market may surge on central banks liquidity move; food inflation data eyed
The market is set for a strong start as global stocks rallied after the world's six major central banks moved to tame a liquidity crunch for European banks by providing cheaper dollar funding. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a jump of 158 points at the opening bell.
On the macro front, the government will today, 1 December 2011, will unveil data on some wholesale price indices viz. the food price index, the primary articles index and the fuel price index for the year through 19 November 2011.
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