Tuesday Closing Report: Watch out for 19,200 on the Sensex

While the market opened with a negative bias tracking the Asian bourses, the GDP growth numbers for the September quarter along with buying in second-rung stocks ensured a green close for the second day running.

The market opened in the red, tracking its regional peers that were trading lower on concerns about the pace of the global recovery process. It traded in a narrow range till noon, with the strong gross domestic product (GDP) numbers for the second quarter giving the indices the much-needed boost, pushing them up into positive territory.

Buying in the broader market in the post-noon session propelled the market further northwards to the day's high. However, a minor bout of profit-taking saw the indices paring some gains but closing around half a percent higher.

The Sensex closed 116.15 points (0.60%) up at 19,521.25. The index touched an intraday high-low of 19,610.46 and 19,218.02. The Nifty settled at 5,862.70, 32.70 points (0.56%) higher. The barometer touched a high of 5,892.25 and a low of 5,768.35.

The market breadth was mixed today. While the Sensex had 26 declining stocks against four gainers, the Nifty closed with 32 advancing stocks and 18 losers. The broader indices outperformed the key benchmarks. The BSE Mid-cap index surged 1.39% while the BSE Small-cap index jumped 1.90%.

The top Sensex gainers included DLF (up 7%), Bharti Airtel (up 6.45%), Tata Motors (up 4.31%), State Bank of India (up 3.97% and Reliance Communications (up 3.41%). Tata Steel (down 1.48%), Reliance Industries (down 1.14%), ICICI Bank, Tata Power (down 0.90% each) and Larsen & Toubro (down 0.89%) were the notable losers today.

BSE Realty (up 5.67%), BSE Consumer Durables (up 2.08%), BSE Power (up 1.84%), BSE Public Sector Undertaking (up 1.73%) and BSE Fast Moving Consumer Goods (up 1.38%) were the key performers in the sectoral space. BSE Oil & Gas (down 0.56%) was the lone sectoral loser today.

Driven by good performance of agriculture and manufacturing, the Indian economy grew by 8.9% in the second quarter of the current fiscal, up from 8.7% in the corresponding period a year ago.

The growth rate for the first quarter was revised upwards to 8.9% from 8.8% as estimated earlier. This took the overall economic expansion during the first half (April-September) to 8.9%, up from 7.5% in the corresponding period a year ago.

Markets in Asia settled mostly in the red on speculations that China would hike rates further to keep a firm tab on inflation and on the continuing European debt crisis.

The Shanghai Composite tumbled 3.11%, the Hang Seng shrank 1.11%, the Jakarta Composite tanked 1.72%, the KLSE Composite was down 0.31%, the Nikkei 225 declined 1.48% and the Straits Times shed 0.53%. On the other hand, the Seoul Composite gained 0.65% and Taiwan Weighted added 0.06%.

Finance minister Pranab Mukherjee said International Monetary Fund (IMF) may prove correct in its assessment of India's economic growth, given the second quarter growth rate of 8.9%, which has surpassed the assessment of various experts.

"I always go by conservative estimates... As per IMF (International Monetary Fund) estimates, the GDP growth would be more than 9%...IMF may be correct this time," Mr Mukherjee said while commenting on the second quarter growth figures announced earlier in the day.

The US markets closed weak on Monday as lingering concerns over the lingering debt crisis in Europe weighed on investors' minds. Besides, the European Commission said it expects weak global markets and government efforts to cut deficits to bring a "gradual and rather uneven" recovery across the region's 27 member states. On the positive side, US retail sales during Thanksgiving weekend totalled about $45 billion, the National Retail Federation said, quoting a survey conducted by BIGresearch.

The Dow declined 39.51 points (0.36%) to 11,052.49. The S&P 500 shed 1.64 points (0.14%) to 1,187.76. The Nasdaq fell 9.34 points (0.37%) to 2,525.22.

Back home, foreign institutional investors were net buyers of Rs156.20 crore in the equities segment on Monday and domestic institutional investors net buyers of Rs199.33 crore on the same day.

Drug major Ranbaxy (up 1.01%) today said it had received final approval from the US health regulator to manufacture and market generic Donepezil Hydrochloride tablets used for treating Alzheimer's disease with 180 days market exclusivity.

The approval for Donepezil Hydrochloride tablets has been given by the US Food and Drug Administration (USFDA) in the strengths of 5 mg and 10 mg, company said in a filing to the Bombay Stock Exchange (BSE).

IT services firm Spanco (up 5.21%) today said it had received a Letter of Intent (LoI) from the Bihar government to implement IT infrastructure for the state's electricity board with an order value of Rs160 crore.

The project has been awarded under the Re-structured Accelerated Power Development and Reform Program (R-APDRP).

State-owned BHEL (up 2.35%) has bagged an order worth Rs3,700 crore from Karnataka Power Corporation Ltd (KPCL) to supply the country's first super critical 700-MW coal fire unit for its thermal power station (TPS) at Bellary.

Bellary TPS is already equipped with a 500-MW unit supplied by BHEL and another unit with the same capacity is under execution.


HLL Lifecare plans IPO in next nine months

State-owned contraceptives manufacturer HLL Lifecare Ltd said it plans to come up with an initial public offer (IPO) to raise funds in next nine months.

Earlier known as Hindustan Latex, the company plans to invest Rs570 crore in new projects such as setting up a 'Vaccine Complex' and 'Medipark'. The vaccine complex is being set up at Chingleput in Tamil Nadu. Besides the vaccine complex, the company is also setting up a 'Medipark' to manufacture medical equipment.

Established in 1966, the company started operations in 1969 under the Ministry of Health and Family Welfare. It manufactures a host of health-care products, including condoms, contraceptive pills, Copper T and medical devices


DQE signs multiple German deals

DQ Entertainment (International) Ltd has signed an exclusive publishing licensing deal for 'The Jungle Book', through DQE's merchandising agents in Germany-ZDF Enterprises, with Egmont Verlagsgesellschaften GmbH. The company has also inked a non-exclusive deal with Belltex, Belgium for retailing Jungle Book based products in Germany, Australia and Switzerland.

According to the agreement, Egmont has the right to manufacture and distribute German language books in a variety of formats such as character books, friendship books etc. Egmont has been granted publishing rights for The Jungle Book in German speaking Europe. DQE will receive a royalty on sales through this deal from Egmont, in addition to a substantial upfront payment as a minimum guaranteed amount.

Under the non-exclusive agreement, Belltex SA, has been authorised to manufacture and distribute bed linen and other similar products based on the The Jungle Book character license. Belltex has been provided the rights for retailing the products in Germany, Austria and Switzerland.

On Tuesday, DQ Entertainment declined 0.69% to Rs93.70 on the Bombay Stock Exchange, while the benchmark Sensex closed 0.60% at 19,521.25 points.


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