Wednesday, December 17, 2008

Market ambitious for direction: Sensex hovering around 9,900 mark

Date : Dec-17-2008 13:36 The US Federal Reserve move to slash its key interest rates to a target rage of zero-0.25%, could not boost the sentiment of regional policymakers to take aggressive actions in order to uplift economic from recession. There is a concern that this recession might lead to a deflationary condition which is worst for upcoming economy. In addition to this, Satyam Computer Services call-off to buy two related companies raised concern.

On the sectoral front, trade is mix. Auto Stocks grew on hopes recent price cut and rate cut would encourage demand for vehicles, which are mainly driven by finance. Further, Banking stocks paved gains on hopes of lower interest rates will boost lending growth. In line with this, Realty stocks declined on reports that recent rate cuts are not enough to drive demand.

The Market breadth, indicating the overall strength of the market, was strong. On BSE, out of 2,444 stocks traded so far, 1,489 shares advanced while 883 shares declined. Nearly 72 shares are unchanged.

At 1.30PM, the BSE Sensex is trading lower by 7.02 points at 9,969.96 and NSE Nifty is down by 6.15 points at 3,035.60.

The BSE Mid Cap is trading higher by 15.51 points at 3,259.73 and Small cap is trading up by 33.15 points at 3,809.80.

Gainers from the BSE Sensex Pack are ICICI Bank higher by (4.38%) at Rs.440.00 along with Infosys Technologies by (4.19%) at Rs.1,169.95, Mahindra & Mahindra by (3.43%) at Rs.310.50, Wipro Ltd by (3.26%) at Rs.24720, Grasim Industries Ltd by (2.50%) at Rs.1,258.30, HDFC Bank by (2.38%) at Rs.1,007.40 and ONGC by (2.28%) at Rs.730.00 among others.

Losers from the BSE Sensex Pack are Satyam Computer Services Ltd by (27.04%) at Rs.165.25 along with RCom by (6.63%) at Rs.218.45, Reliance Energy by (6.46%) at Rs.595.40, ACC by (4.26%) at Rs.512.85, DLF by (2.42%) at Rs.270.45, Reliance Ind by (2.26%) at Rs.1,355.40 and Jaiprakash Associates by (2.23%) at Rs.85.60 among others.

The BSE CD index is higher by 59.40 points or (3.02%) at 2,023.83. Stocks trading higher are Blue Star by (9.50%) at Rs.170.00, along with Videocon Indu by (4.79%) at Rs.131.15 and Titan Ind by (0.55%) at Rs.928.85.

The BSE Oil&Gas index is lower by 79.35 points or (1.21%) at 6,474.84. Stocks trading lower are Gail India down by (5.55%) at Rs.216.30, RNRL by (5.40%) at Rs.54.35, Reliance Ind by (1.79%) at Rs.1,362.00 and RPL by (1.49%) at Rs.89.10.

Satyam Computer Services slumped 27.04% to Rs.165.25 after its American depository receipt fell overnight as investors reacted negatively to its plan to buy two related companies. Later, Satyam called off the deal which it had announced.

Reliance Infrastructure and Reliance Natural Resources fell by 5.40% at Rs.54.35 on BSE on reports the government is seeking details of an alleged misuse of accounts of these two Anil Dhirubhai Ambani Group firms by UBS employees.


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