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Tuesday, September 25, 2012

Markets end with modest gains


Indian stocks rose marginally higher with no major action on the D street owing to profit booking and selling pressure backed by subdued global cues Sensex rose 21 points and the Nifty gained 4 points in today's trade. Major Headlines of the day: 3 oil cos’ bid $5 billion for ConocoPhillips oil assets IFCI sells shares of Ansal Properties Banks to meet KFA on Sept 27 to discuss plan of action FDI up 60% to $1.76 bn in July United Spirits confirms in talks with Diageo; stk up over 4% Indian Indices: The Indian indices opened today's session on a flat note tracking mixed global cues. The trading was range-bound throughout the day. Further, in the second half weak opening of the European indices did not have a major impact on the markets. Markets ended flat breaking yesterday's rising trend. Indices got support from gains in realty, FMCG, CD, HC, Power, CG, IT, TeCk and banking sectors. Index Heavyweights like ITC, HDFC, Hindustan Unilever, Reliance Industries, HDFC Bank, BHEL and Mahindra & Mahindra were also the major contributors to the gaining trend. The Sensex closed 21 points higher while the Nifty rose 4 points in today's trade. Movement of the Indian indices for the day: Markets rang the opening bell in the green territory ignoring subdued global cues. The Sensex remained rangebound owing to selling pressure in banking, metal stocks. Key share indices erased early gains and turned negative on account of profit booking among rate sensitive sectors. The pendulum kept swinging on both sides of the equator craving for some direction but markets remained flat for the major part of today’s trading session. Although NSE Nifty managed to touch 5700 mark but could not maintain the same till end. Further the weak opening of European markets also dampened the sentiments among the local investors. The benchmark indices remained flat amid lackluster trades at noon after gains in defensives helped offest losses in metals and auto shares. Rally was witnessed in FMCG stocks like HUL and ITC after the reforms announced favored high-beta and cyclical stocks. The broader markets outperformed the Sensex and traded on a positive note. The BSE Midcap index rose by 0.46%, while the BSE Smallcap index was up by 0.53% in trade today. The overall market breadth stood positive. The Sensex ended at 18694.41, up by 21.07 points, while the Nifty shut shop at 5673.90, up by 4.30 points. From the home ground: India's monthly car sales fell in August for the first time in ten months, as a gloomy economic outlook and high interest rates dampened demand. The rupee declined by 8 paise to 53.55 against the dollar in early trade on the Interbank Foreign Exchange today following increased month-end demand for the American currency from the importers. Following are the stocks/ sectors which were in news today: 1. Jindal Steel and Power Ltd fell over 3% on reports that the company has raised a bridge loan of Rs660 crore to fund its CIC Energy acquisition. The stock closed 4.35% lower in trade today. 2. Hotel Leelaventure surged nearly 5% on reports that the consortium of lenders have agreed for a two-year moratorium on the outstanding loans. The stock closed 1.03% higher in trade today. 3. Sugar stocks tumbled after government of India deferred its decision on raising price of sugar sold through public distribution system ( PDS). Owing to this sugar stocks like Balrampur Chini and Bajaj Hindustan fell over 5% in trade today. 4. Axis Bank fell nearly 4%, on concerns over credit provided to Indonesia's PT Bumi Resources, whose parent company, Bumi Plc, launched an investigation into alleged financial irregularities at its Indonesian operations. The stock closed 2.66% lower in trade today. 5. SKS Microfinance locked 5% upper circuit following a large block deal on the exchange. The stock closed 4.97% higher in trade today. 6. United Spirits, the UB Group-company controlled by liquor baron Vijay Mallya today (September 25, 2012) confirmed that it is indeed in talks with Diageo, the world’s biggest distiller. The stock closed 2.88% higher in trade today. 7. Cairn India slipped over 5% and touched the monthly low of Rs326 on the BSE. There was a block deal of 8% Cairn India equity on National Stock Exchange ( NSE) at Rs325 per share. The stock closed 3.57% lower in trade today. 8. Shares of Mangalore Chemicals and Fertilisers were up over 6% on talks that the UB Group may sell stake its non-core assets to reduce the debt of its group company Kingfisher Airlines. The stock closed 12.34% higher in trade today. Market sentiment: The market breadth stood in favor of advances. Of the 3010 stocks traded on the BSE, 1552 (51.56%) rose, 1325 (44.02%) fell and 133 (4.42%) stocks remained unchanged. Sectoral & stock screening: Among the 13 sectoral indices, nine sectors closed in green zone while remaining four sectors closed in red zone. Top Gainers: BSE Realty rose by 2.08%, BSE FMCG surged by 1.85%, BSE CD gained 0.75%. Top Losers: BSE Metal fell by 1.36%, BSE Auto slipped by 0.72%, BSE PSU was down by 0.27%. Among 'A' group stocks, top three gainers were- Pantaloon Retail rose by 9.60%, United Spirits up by 8.89% and United Breweries surged by 7.02%. Top three losers were- Essar Oil declined by 5.00%, Jindal Steel down by 4.35% and Cairn India fell by 3.57%. Global signals: Asian shares eased on Tuesday after sentiments were affected by data showing a drop in Germany's business confidence dropped in September, and a weak earnings forecast from Caterpillar Inc, both of which underscored worries about a global growth slowdown. Nikkei, Hang Seng, Taiwan, Kospi and Shanghai declined between 0.1-0.5%. European stocks steadied on Tuesday, with investors reluctant to make any bold moves ahead of some key events in Spain and Greece, as concerns about global growth simmer in the background. US stock index futures pointed towards a slightly higher opening at the Wall Street on Tuesday. Market Outlook: US: S&P Case Shiller HPI Consumer Confidence.