The key benchmark indices surged to two month highs as investors extended their buying spree for sixth straight session on easing inflation worries following a fall in crude oil prices. Data showing stepping up of buying by foreign funds recently also underpinned sentiment. The BSE 30-share Sensex was up 129.29 points or 0.69% to 19,072.43. The market breadth was strong.
As per provisional figures, foreign institutional investors (FIIs) bought shares worth Rs.890.02 crore on Monday, 28 March 2011. FII inflow totaled Rs. 3192.41 crore in five trading sessions from 22 March 2011 to 28 March 2011 as per data from the stock exchanges.
Oil extended recent losses after Libyan rebels advanced against Muammar Qaddafi's troops, raising speculation the conflict may be resolved soon.US crude futures were down 56 cents a barrel or 0.54% to $103.42 a barrel. India imports majority of its crude oil requirements and a surge in crude oil prices to 2-1/2-year highs recently has sparked inflation and interest rates worries.
At 09:28 IST, the BSE 30-share Sensex was up 129.29 points or 0.69% to 19,072.43. The Sensex gained 132.56 points at the day's high of 19,075.70 in early trade, its highest level since 27 January 2011. The index rose 1.68 points at the day's low of 18,944.82 in early trade.
The S&P CNX Nifty was up 24.45 points or 0.43% to 5,711.70. The Nifty a high of 5,715.75, its highest level since 27 January 2011.
The market breadth, indicating the health of the market, was strong. On BSE, 818 shares advanced while 452 shares declined. A total of 48 shares remained unchanged.
The total turnover on BSE amounted to Rs. 186 crore by 09:25 IST.
Among the 30-member Sensex pack, 19 gained while the rest declined. Reliance Communications (up 2.89%), Hero Honda Motors (up 2.01%), and HDFC (up 1.02%), edged higher from the Sensex pack.
India's largest listed cellular services provider by sales Bharti Airtel surged 3.09% to Rs.358.50 and was the top gainer from the Sensex pack. The stock extended four-day rally after a report showed the company has acquired up to 6-lakh 3G subscribers since the launch of the next generation telephony service in end-January 2011.
Oil & gas stocks were in action after the ninth round of oil and gas block auctions closed on Monday. India's largest oil exploration firm ONGC rose 1.54% on reports a consortia led by ONGC won 10 blocks in the latest round of bidding.
Index heavyweight Reliance Industries (RIL) rose 0.09% to Rs. 1024.30 on reports the firm was awarded two blocks in the latest round of bidding for oil & gas blocks in India.
RIL on Sunday, 27 March 2011, agreed to establish a joint venture (JV) with D.E. Shaw Group to build a leading financial services business in India. The JV will incorporate the D. E. Shaw group's investment and technology expertise with RIL's operational knowledge and extensive presence across India to offer a comprehensive array of financial services to the Indian market place, the two companies said in a joint press release.
India's largest realty firm by sales DLF lost 0.99% to Rs. 244.60 and was the top loser from the Sensex pack.
ACC fell 1.46% after the stock turned ex-dividend today, 29 March 2011, for a final dividend of Rs. 13 per share and one time special dividend Rs. 7.50 per share.
Volatility may remain high on the bourses in the near term ahead of the expiry of derivative contracts for the near-month March 2011 series on Thursday, 31 March 2011. Year-end reshuffling of positions by traders may add to volatility.
The near term major trigger for the market is Q4 March 2011 results which will start trickling in from about mid-April 2011.
Asian stocks were mixed on Tuesday, 29 March 2011 amid concerns arising from muted earnings in Japan as the nation struggled to contain a meltdown at a nuclear plant. The key benchmark indices in Singapore, Japan, Indonesia, and Hong Kong fell by between 0.01% to 1.28%. The key benchmark indices in China, South Korea and Taiwan were up 0.12% and 0.23%.
US stocks edged lower on Monday, 28 March 2011, after a late tumble undercut advances from earlier in the day, and as investors cautiously retreated ahead of key data reports later this week. The Dow Jones Industrial Average closed down 22.71 points, or 0.2%, at 12197.88. The Nasdaq Composite fell 12.38, or 0.5%, to 2730.68 and the Standard & Poor's 500-stock index shed 3.61, or 0.3%, to 1310.19.
In economic news, the National Association of Realtors said its Pending Home Sales Index, based on contracts signed in February 2011, increased 2.1% to 90.8. The index had declined 2.8% in January 2011.
Trading in US index futures indicated that the Dow could rise 7 points at the opening bell on Tuesday, 29 March 2011.
Billionaire investor and international investment icon Warren Buffett who was in his maiden visit to India last week said that he hopes to spend some money in India. His firm Berkshire Hathaway is looking to park funds in large investment destinations and India fits the bill perfectly, he said. India, according to him, is not an emerging market but a very big country with a large number of significant businesses. He said that Berkshire Hathaway would look at possible acquisitions in India as and when there were opportunities.
Indian business tycoons Ratan Tata and Anil Ambani will appear before a parliamentary committee that is probing a multi-billion-dollar telecoms licencing scandal. The parliament's Public Accounts Committee (PAC) is investigating alleged corruption in the sale of 2G telecoms licences in 2007-08, which a state auditor said cost the government up to $39 billion in lost revenue, and led to the sacking of a former telecoms minister.
No comments:
Post a Comment