~
Sustained buying across the board helped equities end sharply higher on Monday. While better than expected Index of Industrial Production figures for the month of August set the stage early in the first half, positive opening of European markets later set the markets alight.
Early in the day government data showed, India's industrial output for August rose 10.4 per cent against 1.7 per cent in the same month year ago.
“The double-digit growth in industrial production during August (first time since October 2007) was largely on expected lines. With this, industrial production in India has seen a sharp revival growing at an average 8.5% during Jun-Aug, 2009 up from an average of just 1% growth in the prior three months (Mar-May, 2009).
Two factors have driven this sharp revival in domestic industrial activity. Firstly, the revival in domestic credit as evidenced by indicators such as sharp pick up in auto volumes and strong FMCG volumes and secondly, a deceleration in the pace of decline of exports (export traffic at major ports actually grew in August).
The adverse impact of monsoons will be felt in 4QCY09. However, initial indicators suggest the impact has been lower than initially feared. In addition, 4QCY09 onwards, low base of last year will favorably impact reported YoY Industrial production growth. Consequently, in our view, industrial production growth should average around 7-8% for full year FY10 as against a growth of just 2.7% during FY09,” said Ashutosh Datar, Analyst – IIFL, institutional equities arm of India Infoline.
Market opened on a positive note after a poor performance last week. Sentiments were positive on reports that warring Ambani brothers may reach out for an amicable solution to end their business rivalry. Shares of both Mukesh and Anil Ambani brothers provided support to the indices.
Bombay Stock Exchange’s Sensex ended at 17,026.67, up 384.01 points or 2.31 per cent from Friday’s close. The index touched a high of 17,068.78 and low of 16,687.32 intraday.
National Stock Exchange’s Nifty closed at 5054.25, up 109.05 points or 2.21 per cent. The broader index hit a high of 5068.05 and low of 4945.45.
“Over the last few days, basic technical indicators were in a sell mode. Whenever that happens we see every rise as a bounce before a fall. Unless the indices break previous highs, the trend remains bearish. The Sensex may drift down to 16,200 levels if any downward correction takes place,” said Rohit Srivastava, technical analyst, Sharekhan.
The BSE Midcap Index closed 1.22 per cent higher and BSE Smallcap Index gained 1.05 per cent
Amongst the sectoral indices, BSE IT Index advanced 2.94 per cent, BSE Bankex jumped 2.63 per cent and BSE Oil&gas Index advanced 2.35 per cent.
Significant gains in State Bank of India (5.16%), Reliance Infrastructure (5%), Wipro (3.79%), ITC (3.74%), Tata Consultancy Services (3.36%) and Reliance Industries (3.19%) drove the Sensex.
Shares of Reliance Infrastructure and Reliance Industries were in limelight after the feud between warring Ambani brothers looked nearing to an end. Reliance Industries on Sunday responded positively to Anil Ambani’s call to settle all outstanding disputes between them through dialogue and discussion, but added that the contentious gas dispute is a larger national issue and can only be resolved through the Supreme Court.
Hero Honda (-0.9%), Reliance Communications (-0.62%) and BHEL (-0.21%) were the losers.
BSE breadth showed 1,627 advances against 1,108 declines. The market will be closed Tuesday for assembly elections in Maharashtra.
Elsewhere, European markets were led by gains in financials and commodities ahead of earnings season. US stocks were also expected to open on a higher note. At 5:30 pm IST, Dow Jones futures was up 0.59 per cent, S&P 500 gained 0.68 per cent and Nasdaq 100 moved 0.61 per cent higher
~~ET
At Sampark Online Finserv LLP, we provide financial advice and distribute various investment products with the most efficient & widest range, customized specifically to your NEEDS..@ Whether you are keen on small investments or playing it big, We provide financial advice and distribute various investment/financial products with the most efficient & widest range, customized specifically to your NEEDs.
Subscribe to:
Post Comments (Atom)
Popular Posts
-
Dec 03, 2009 सोने का नया रिकॉर्ड सोना जबरदस्त रफ्तार से दौड़ रहा है। हर रोज नए रिकॉर्ड बन रहे हैं। पिछले 15 दिनों में ही हाजिर बाजार में इ...
-
Those Who Joyfully Leave EVERYTHING IN GOD'S HAND Will Eventually See GOD'S HAND IN EVERYTHING WORRY ENDS, WHERE FAITH BEGI...
-
दोस्तों आपने कछुए और खरगोश की कहानी ज़रूर सुनी होगी, just to remind you; short में यहाँ बता देता हूँ: एक बार खरगोश को अपनी तेज चाल पर घमंड ह...
-
Hope this post helps one and all in understand how important it is to save consistently and regularly. One has no idea of the Power of C...
-
SENSEX-18845 Support-18750/18600/18480 Resistance-18990/19090/19150 NIFTY-5647 Support-5608/5570/5524 Resistance-5693/5720/5757
-
SAMPARK 75(193), G. T. ROAD RAMBANDHU TAKAW OPP-CHOWALAL SCHOOL ASANSOL-713303, (W.B),INDIA JALAN BHAWAN 52 N.S.ROAD...
-
Systematic investment plans (SIPs) are here to stay. Going by the growing number of SIPs, it does look like investors have taken to them...
-
#Yoga and #SIP 1. #Consistency and #Discipline: - Just as yoga requires regular practice, commit to contributing to your SIP co...
-
The market has taken a pause after the steep fall in the early part of the series and has been consolidating in the range of 5380-5500 for t...
-
Here is a list of some useful sites on the Internet : .::. STOCK NSE (National Stock Exchange of India) BSE (Bombay Stock ...
No comments:
Post a Comment