Bourses are expected to remain under pressure tomorrow
As we said yesterday, the market continued to move sideways. Through the course of the day, the BSE Sensex made a high of 17,184 and a low of 17,028—a range of 156 points. It closed the day at 17,098. Today was the third day in a row that the index has failed to cross the crucial 17,200 level. The US markets were marginally up yesterday as were Asian markets. European markets were also trading flat.
Among the big movers today was Mukta Arts (up 7.58%). Whistling Woods International, a subsidiary of Mukta Arts Ltd and Filmcity Mumbai have signed an MoU with Centum Learning Ltd. This vertical-specific programme would be offered by Centum Learning this fall to build professional skills among students aspiring to join the media & entertainment sector. Index heavyweight Reliance Industries was up 1.80%, crossing over Rs 1,000 on reports that the firm is about to strike oil or gas at its Palar deepwater block in the Kaveri basin.
Among the other big movers were sugar stocks. Simbhaoli Sugar crashed by 9.99% while Dhampur Sugar fell 8.88%. On Tuesday, sugar was selling at
Rs31.75 per kg, higher than Rs30 per kg of Monday. On Monday, the Maharashtra State Cooperative Sugar Factories Federation issued an “appeal” to sugar mills asking them not to sell sugar below Rs32 per kg at ex-mill rates. Traders say consumers can expect sugar prices to come down even more. Since February, the government asked sugar mills to sell at least 25% of the stock to the market. Otherwise it becomes ‘levy’ sugar and goes to the Public Distribution System. PDS sugar is sold to the government at one-third the market price.
Among the other stocks, Cox & Kings started its luxury train service, Maharaja Express. The stock was up 2.68%. Thermax Ltd and Babcock & Wilcox Power Generation Group Inc have announced a joint venture to engineer, manufacture and supply supercritical boilers for the Indian power sector. Thermax will own 51% share of the JV. Thermax was up by 2.70%.
Girija Pande, Asia-Pacific chairman of TCS, said that the group had achieved compounded annual growth averaging 40% a year in the region over the past nine years, and was hoping for 35% growth this year.
NTPC continued to fall. Today it was down 1.38%. TK Chatterjee, executive director at NTPC, said that the company was scouting for mines in Mozambique and Indonesia as local coal output would fall short of demand. Mr Chatterjee said that NTPC's coal imports in 2010/11 would rise to 13.5 million tonnes.
The market will remain under pressure tomorrow. If the Sensex falls below 17,000 and stays there for a few hours, it will go down to 16,800.