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Fresh developments in Greece and strong Indian economic data helped Indian markets to stay positive
Indian markets continued their gains on the back of strong services and manufacturing activity in the month of February and rise in exports for the third consecutive month in January. Positive global markets following fresh developments in Greece also had their impact on Indian bourses. At the end of the day, the Sensex was up 227 points from the previous day’s close at 17,000, while the Nifty gained 71 points to close at 5,088.
Yesterday we had said to watch out for 17,000 on the Sensex and the index did breach this point. We expect Indian markets to continue their uptrend. However, wait to buy at a dip.
At the end of the day, Reliance Industries Limited (RIL) gained 4% after reports stated that the board of LyondellBasell Industries had rejected an acquisition bid by the Indian company.
Tata Power Company rose 5% on reports of its plans to increase coal mining capacity in Indonesia by a fourth, starting in the latter half of FY11. The capacity will be increased to 75 metric tonnes (MT) a year from the current 60MT.
Steel Authority of India rose 1% after the company raised product prices by Rs500-Rs600 a tonne, after factory-gate duties were raised in the Union Budget on 26 February 2010.
ACC remained flat after the company's cement dispatches declined 2.29% to 17.1 lakh tonnes in February 2010 over February 2009.
Jaiprakash Associates rose 6% after the company’s cement shipments in February 2010 jumped 61% from a year earlier to 11.6 lakh tonnes.
Orient Abrasives is setting up two 1.5MW wind turbine generators in Kalmangi (Karnataka) for generation of power. The stock was up 1%.
TAKE Solutions remained flat after the company announced a partnership with Liquent Inc, a life sciences solutions company.
Hindustan Dorr Oliver, a subsidiary of IVRCL Infrastructures and Projects Ltd, has acquired UK-based heavy engineering company DavyMarkham. The stock was up 2%.
Era Infra Engineering Ltd rose 1% after the company secured contracts worth Rs508.89 crore.
During the day, agriculture minister Sharad Pawar said that the winter-sown crops output will be good and will ease high food prices.
Steel secretary Atul Chaturvedi said that steel demand is seen rising by 10% in the fiscal year to March 2011, helped by higher spending on infrastructure.
According to reports, business activity among Indian service companies grew at its fastest pace in 17 months in February 2010, climbing for the third straight month as both output and new orders increased. The HSBC Markit Business Activity Index, based on a survey of 400 firms, rose to 60.9 in February 2010, its highest since September 2008, and compared with 59.0 in January. The manufacturing industry in February 2010 grew at its fastest pace in 20 months, expanding for the third month, thanks to increasing output and new orders, a survey showed. The HSBC Markit Purchasing Managers' Index, based on a survey of 500 companies, rose to 58.5 in February, its strongest reading since June 2008, from 57.7 in January. A reading above 50 means activity is expanding.
During the day, Asia’s key benchmark indices in Hong Kong, Japan, South Korea, Singapore, China and Taiwan rose between 0.31%-0.78%; indices in Hong Kong and Singapore fell between 0.14%-0.37%.
According to Australia's Bureau of Statistics, gross domestic product climbed 0.9% from the third quarter.
On Tuesday, 2 March 2010, the Dow Jones Industrial Average was up 2 points whereas the Nasdaq Composite and the S&P 500 were up 7 points and 3 points respectively.
In premarket trading, the Dow was trading 5 points higher.
A land auction at BKC—a prime commercial real-estate destination in Mumbai—which opened today did not attract any bidders because of the high prices quoted by MMRDA
The Mumbai Metropolitan Region Development Authority (MMRDA) auction at Bandra-Kurla Complex (BKC), a prime commercial real-estate destination in Mumbai, failed to attract any bidders, as the price quoted by the authority was perceived to be very high. There were about eight perspective bidders—including developers and banks—in the fray.
A few developers like Indiabulls Real Estate, Sunteck Realty Ltd, Peninsula Land Ltd and Godrej Properties Ltd were seriously considering the land deal. But none of them turned up at the auction on Wednesday because MMRDA was quoting Rs3 lakh per square metre for the plot, which has a floor space index (FSI) of 4.5. The total amount quoted for the deal was between Rs450 crore-Rs500 crore.
“The government should facilitate transactions by quoting reasonable prices for this property. These huge figures (being quoted) during a slowdown in commercial space will not facilitate any transactions in this segment,” said Raja Kaushal, executive director and chief operating officer, BNP Paribas Real Estate.
Currently, an area of around 10 million square feet (60% in suburban Mumbai and 40% in south Mumbai) of commercial space is available in the metropolis, according to BNP Paribas Real Estate.
“There is over-supply of office space in Mumbai, and it (sales) will take time to take off,” said Pranay Vakil, chairman, Knight Frank (India) Pvt Ltd.
“On a country-wide scale, the supply of new projects has doubled compared to last year, and the demand increased by 15% last quarter. In Mumbai, there is almost 50% over-supply of commercial real estate,” added Mr Kaushal.
China built huge stockpiles of copper, zinc, coal and iron ore over the last year. The fear is much of this inventory is held on speculation of rising prices. If prices fail to rise, all of this metal could re-appear on the world market as worried investors sell. Recent action in the Chinese shipping indexes may be confirming those fears.