Mad bull snorts
Moneylife Digital Team 09 April 2010

Money continues to gush in, irrespective of nosebleed valuations

The market was up today, taking a cue from strong global indices. The BSE Sensex was up 218 points (1.2%) to close at 17,933 and the Nifty closed at 5,361, higher by 57 points (1.08%) from the previous close.

The market started on a high note today. The early gains were pared in the morning session. However, a bullish sentiment was present in the bourse throughout the day as the market rebounded from its low to reach the intraday high during afternoon trade.

Most Asian stocks edged up on Friday, led by overnight gains on Wall Street as strong US retail sales data boosted confidence in recovery in the world’s biggest economy. European markets were up, despite the troubles in Greece being far from resolved.

Chinese stocks rose on renewed optimism that Beijing may be getting closer to allowing the yuan to appreciate against the US dollar. The key benchmark indices in China, Japan, Taiwan, Hong Kong, and Singapore rose by 0.25% to 1.56%. The key benchmark indices in South Korea and Indonesia fell by 0.31% to 0.54%.

US markets were up on strong retail sales data. The Dow gained 29.55 points (0.27%) to 10,927.07. The S&P 500 rose 4 points (0.34%) to 1,186. The Nasdaq added 5 points (up 0.23%) to 2,436. An official from the US Federal Reserve indicated that interest rates would remain on the lower side for a longer period of time to help the economy to recover.

South Korea kept its interest rates at a low level of 2% and said that this regime is required to bring the economy back on track. After a spree of buying, foreign institutional buyers were less active on Thursday. They were net buyers of Rs62 crore. Domestic institutional investors were net sellers of Rs93 crore. The rupee was up on strong domestic markets and the weakness of the dollar.

Shree Ganesh Jewellery House (down 37%) listed on the bourses today. It had priced the initial public offer at Rs260 at the lower price band of Rs 260-Rs270 per share. Maruti Suzuki India (down 0.4%) has said that it does not have adequate capacity to meet with the growing demands for its cars. Private Equity firm CX Partners has bought 8% stake in Monnet Ispat (up 0.8%) for Rs150 crore from the secondary market. Tata Steel (up 0.8%) and NMDC will jointly develop two steel projects in Karnataka and Chhattisgarh. HEG (up 0.68%) plans to raise Rs400 crore by selling equity to invest in capacity expansion and for working capital requirements. Rise in crude oil prices has propped up oil stocks of companies involved in oil exploration. Jaiprakash Associates (up 2.57%) plans to sell about 165 apartments at its project ‘Jaypee Greens Wish Town’ at Noida, near New Delhi, at a minimum price of Rs3.30 crore each. The project comprises 4,100 square feet apartments, adjacent to a golf course. Shakti Pumps (up 5.5%) has received an order from the Maharashtra Electricity Distribution Company for supply of 3,530 energy-efficient pumps for an agricultural pilot project in Sholapur. Jet Airways (up 6.6%) is likely to increase its fares. BGR Energy (up 0.4%) has said that it has a current order book of Rs10,150 crore. Telecom stocks were up as the 3G auction commenced today. Telecom operators are competing for a total of 71 3G slots on offer in India’s 22 telecom circles which is to be followed by a separate auction of broadband spectrum, one of the world's biggest such auctions in recent years.

For the ninth week in a row the market has ended higher. We are headed for another correction, possibly a longer one next week.

Free Helpline
Legal Credit