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Markets may remain bullish over the short term, if global cues remain strong
The market ended on a strong note today, driven by firm global equity markets. It started the day with a gain. However, it slid soon after that and traded
range-bound till afternoon. It regained strength in the afternoon session and ended the day with a strong gain. The BSE Sensex closed at 17,692 points, up 164 points (0.94%) and the Nifty ended at 5,290 points, up 41 points (0.8%). The bullish sentiment may continue to play out over the short term, if global indices remain strong.
Asian stocks rose to an 11-week high on Thursday as China's manufacturing industry picked up and foreign buying boosted the technology-heavy markets of Taiwan and South Korea. The key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea, Singapore, and Taiwan were up by 1.23% to 1.74%.
European stocks were also up, buoyed by the manufacturing data from Europe and China. China's official Manufacturing Purchasing Managers Index rose to 55.10 in March from 52 in February. Meanwhile, a separate China manufacturing PMI released by HSBC Holdings Plc and Markit Economics also rose to 57 in March 2010 from 55.8 in the previous month. The Dow Jones Industrial Average dropped 50 points (down 0.47%) to 10,856. The Nasdaq Composite index slid 12 points (down 0.53%) to 2,398 and the S&P 500 shed 3 points (down 0.33%) to 1,169.
Closer home, the National Stock Exchange (NSE) on Wednesday, 31 March 2010, announced a reduction in market lot size of a number of stocks in the derivatives segment. In its bi-annual review, NSE revised the market lot size from a lot of 124 stocks to a lot of 59 stocks. The food price index rose by 16.35% in the week ended 20th March, higher than the annual rise of 16.22% in the previous week.
The fuel price index rose 12.75%, higher than an annual rise of 12.68% in the previous week. Manufacturing growth in March slowed down from the
20-month record high in February. The Reserve Bank of India (RBI) has reportedly kept the limit of State governments’ short-term borrowing from the central bank, called as ‘Normal Ways and Means Advances’, unchanged for the financial year started Thursday. The government announced a fresh package of incentives worth Rs635 crore for the exporters of garments, engineering, electronics and agricultural products. There will be no increase in the subsidised food price distributed to over 11.5 crore poor families till May. The government announcement was an attempt to refrain from taking any unpopular measures with a high inflation environment.
Prime minister Manmohan Singh has said that elementary education will be free which can be termed as a big-ticket programme from the government to consolidate its rural and poor voters. Foreign institutional investors were net purchasers of Rs433 crore. Domestic institutional investors were net sellers of Rs356 crore. Larsen & Toubro (up 1.4%) has entered to an agreement with Rolls-Royce to manufacture light water reactors in India. State Bank of India (up 1.1%) has said that it has extended the special loan scheme till 30th April. Reliance Industries (up 1.7%) is likely to increase its crude oil imports by about 22% in FY11 as the company plans to raise production in its Jamnagar refinery. IT stocks rose on bargain hunting after a recent slide triggered by a firm rupee. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports. Maruti Suzuki India (down 1.8%) said that sales in March this year were 95,123 units which is a rise of 11% over the year-ago period. TVS Motors (up 0.9%) had an increase in sales of 24.35% to 1,46,736 units in March 2010 over the year-ago period. Glenmark Pharmaceuticals’ (up 1.3%) US unit has received approval from the US Food & Drug Administration for a generic drug. The company made this announcement during trading hours today. Shree Ashtavinayak Cine Vision (up 4.9%) said that its board will consider a buyback of shares. State-run power equipment manufacturer BHEL (up 1.4%) announced a jump of about 37% in net profit for 2009-10 at Rs4,287 crore compared to the previous fiscal. The company has received orders worth Rs59,031 crore in 2009-10 compared to Rs59,678 crore in the previous fiscal and recorded the highest-ever orders from the private sector for 14,689MW capacity. The total order book of the company was at Rs1,43,800 crore.