The market may witness cautious trend as US indices ended on a flat note yesterday and Asian indices are exhibiting mix trends in morning trades. Although the bias remains positive, investors should maintain caution as profit-taking at higher levels may pull down the market. Among the local indices the Nifty could test 4740 on the downside while on the upper side it may move up to 5050. The Sensex has a likely support at 16000 and may face resistance at 16400
Will the momentum continue?
Markets extended their gains to fourth straight trading session as firm cues from the international equity markets coupled with buying momentum in the index heavyweights like Reliance Industries, ONGC, DLF and ICICI Bank lifted the markets to surge higher. The benchmark Sensex posted its second biggest single day points gain simultaneously its biggest single day points rally since January 25, 2008. The rally could be attributed to buying momentum in scrip across the sectors. All the Sectoral indices on BSE ended in green.
Finally, the BSE benchmark Sensex added 928 points to 16,217 and the Nifty index added 267 points to close at 4,877. Overall about 2,076 stocks advanced; 639 stocks declined while 47 stocks remained unchanged. Among the 50 Nifty 48 stocks ended in positive territory. On the other hand, only 1 stock ended in red.
BSE Realty index (up 9.5%), BSE Bankex index (up 8.1%), BSE IT index (up 7.7%), BSE Power index (up 6.5%) and BSE Metal index (up 6.4%). BSE Mid-Cap index (up 6.3%) and Small-Cap index (up 4.8%).
Jet Airways surged by over 7% to Rs548. Reports stated that the company would sell 10% stake to FIIs before rights offer. The scrip touched an intra-day high of Rs558 and a low of Rs512 and recorded volumes of over 32,000 shares on BSE.
Aurobindo Pharma further gained by over 4% to Rs258 after the company on Monday announced that they acquired TAD Italy, a generic company with 70 ready-to-market products, for an undisclosed amount. The scrip touched an intra-day high of Rs261 and a low of Rs250 and recorded volumes of over 37,000 shares on BSE.
Sun Pharma slipped by 2.1% to Rs1252. According to reports, the USFDA has asked the US subsidiary of Sun Pharmaceuticals to withdraw many batches of its generic Metformin Hydrochloride tablets used for treating diabetes, citing efficacy and quality issues. The scrip touched an intra-day high of Rs1300 and a low of Rs1240 and recorded volumes of over 4,00,000 shares on BSE.
JP Associates rallied by over 16% to Rs233 after the company announced that they would sell 1% stake in unit to ICICI Bank. The scrip touched an intra-day high of Rs236 and a low of Rs207 and recorded volumes of over shares 78,00,000 on BSE.
Jyoti Structures surged by over 4% to Rs162 after the company said that they secured order worth US$39.64mn from Uganda Electricity. The scrip touched an intra-day high of Rs170 and a low of Rs157 and recorded volumes of over 25,000 shares on BSE.
Reliance Industries, manufacturers of petrochemicals, synthetic fibers and textile, plans to close down all the petroleum retail outlets owned by it directly, according to reports. The rising crude prices and the absence of government subsidies have made operations unviable, the report stated. The scrip ended at Rs2314 gaining by 5.1% after hitting an intra-day high of Rs2325 and a low of Rs2220 and recorded volumes of over 8,00,000 shares on BSE.
Four Soft was up by 1% to Rs23 after the company declared that they secured software contract from IAL Group. The scrip touched an intra-day high of Rs24 and a low of Rs22 and recorded volumes of over 2,00,000 shares on BSE.
One ought to keep one's antennas on high alert to gauge any incidents. The immediate event to watch is the upcoming F&O expiry on Thursday. The market may witness some extra volatility. So traders are advised to protect their profits
Corporate News
SBI secures full bank license from the Monetary Authority of Singapore to establish up to 25 outlets.
L&T wins US$240mn deal for building four ships.
Phoenix Mills buys 25 acres land in Bangalore from GKW for Rs3.2bn.
IOC expects to save Rs10mn a day on transportation once its proposed 15mtpa refinery and petrochem complex starts operations in 2011.
The Government has stayed plan to reduce assured return on equity on negotiated power projects on opposition by NTPC.
Strides Arcolab gets first US approval for HIV drug.
HSBC Financial's stake in Yes Bank up at 4.88%.
Kotak Mahindra Bank plans to lend 30% more in the next 12 months.
Nortel wins US$100mn GSM deal from BSNL.
Jet Airways plans to dilute stake by 10%.
Reliance Power to spend Rs30bn for mines to fuel Sasan project.
Voltas not to hike prices of air-conditioners despite rising input costs.
ONGC targets 29.04MT crude production in 2008-09.
Gail sets gas transmission target of around 81.5mmscmd in 2008-09.
Nilkamal to invest Rs1.5bn by 2011 to expand its furniture retail chain.
Union Bank likely to post lower credit growth this fiscal at around 20% against projected 23-25%.
Federal Bank to open 26 branches across 11 states today.
SBI to raise Rs62.7bn through foreign currency bond issue.
The Government plans to divest 5% stake through follow-on public offers in companies including MMTC, STC, Concor and SCI.
GTL promoters increase stake from 34.36% to 37.05%.
Aurobindo Pharma looking for strategic overseas buy-outs to double revenues.
PFC ties-up with Indian Renewable Energy Development Agency to fund renewable projects.
Bombay Dyeing, L&T JV to jointly bid for development projects in Mumbai and other cities.
Eicher Motors to mull major capacity expansion plan ahead of JV for trucks with Volvo.
Corporation Bank to raise Rs5bn through bonds to meet capital requirements.
Religare to acquire UK broking firm Hichens, Harrison & Co for US$100mn.
REL buys back 250,000 shares through open market purchases on first day of share buyback programme.
Tata Chemicals to raise US$850mn to part fund its US$1bn acquisition of US-based General Chemicals Industries Products.
Ministry of Commerce to consider waiving off 26.33% duty levied on coal exported by Coal India.
Economic News
Car manufacturers consider price hikes on input cost pressures.
FDI cap in DTH to go up to 74%.
ECB policy likely to be relaxed; cap for current financial year may go up to US$28-30bn.
Cement, power companies to buy ships to cut costs.
RBI grants license to Singapore banks, DBS and United Overseas Bank.
Steel makers agree to stop exports, forego DEPB benefits and supported reducing import duty on the alloy.
CPI wants to prevent the Government from acquiring lands and enforce trade union laws in SEZs.
Indian companies witnessed a slowdown in ECB and FCCB mop-up in November-January, says RBI.
I&B Ministry gives approval to hike FDI to 24% from 20% in FM radio operations