Share prices range-bound; Nifty will target 5,900 before stalling: Wednesday Closing Report
Moneylife Digital Team 20 April 2011

The market took support around the level suggested yesterday (5,770 on the Nifty) and rebounded on higher volumes. Expect a couple of days of rally

Pinning its hopes on the government's forecast of a normal monsoon this year and taking a cue from early gains in the Asian markets, the Indian bourses, too, opened higher. The Sensex added 122 points to its previous close, to resume trade at 19,274, and the Nifty gained 45 points to open at 5,786. Banking, IT, capital goods and metals sectors helped the indices notch early gains.

The indices were range-bound in the morning session, but profit-booking led the indices to the day's lows at around 1.10pm. At their intra-day lows, the Sensex was at 19,171 and the Nifty stood at 5,760. But taking support from positive earnings reports announced by corporates during the day, and inflows from institutional investors, the market was on a higher trajectory and closed near the day's high.

At the intra-day high, the Sensex was up 363 points at 19,485 and the Nifty gained 116 points at 5,857. The market closed marginally below these levels, the Sensex settling at 19,471 with a gain of 349 points, and the Nifty closing 111 points up at 5,852, suggesting the gains could continue for a day or two. The advance-decline ratio on the National Stock Exchange was 1027:377.

Though the broader indices also closed positive, they underperformed the Sensex. The BSE Mid-cap index gained 1.18% and the BSE Small-cap index advanced 1.29%.

BSE Auto (up 2.72%), BSE IT (up 2.39%), BSE Metal (up 2.32%), BSE Consumer Durables (up 1.99%) and BSE TECk (up 1.95%) were the top sectoral gainers. There were no losers today.

Mahindra & Mahindra (up 5.05%), TCS (up 4.63%), Hindalco Industries (up 4.16%), Tata Motors (up 3.99%) and Jaiprakash Associates (up 3.92%) were the top performers on the Sensex. On the other hand, Reliance Communications (down 1.99%), Hero Honda (down 1.87%) and Larsen & Toubro (down 0.04%) ended losers.

Stepping up its probe into the dealings of suspected money launderer Hassan Ali Khan, the Enforcement Directorate (ED) has approached the ministry of home affairs to find out if he has any links with terror outfits. In a letter to the home ministry, the ED has conveyed that it was absolutely necessary to look into various aspects of the 53-year-old Pune-based stud farm owner's dealings and whether he had any links with any terrorist outfit, whether within the country or abroad.

Markets in Asia ended in the green on indications that despite the downgrade in US credit outlook, the economic recovery is still on track. The markets also factored in the drop in Japanese exports in March following the devastating earthquake and tsunami. Exports fell 2.2% in March, from a year earlier, more than the 1.5% analysts expected. This is the first decline in 16 months.

The Shanghai Composite gained 0.29%, the Hang Seng surged 1.60%, the Jakarta Composite jumped 1.66%, the KLSE Composite climbed 0.62%, the Nikkei 225 advanced 1.76%, the Straits Times rose 1.29%, the Seoul Composite jumped 2.23% and the Taiwan Weighted was up 2.02%.

Back home, institutional investors-both foreign and domestic-were net buyers in the equities segment on Tuesday. Foreign institutional investors bought stocks worth Rs1,693.19 crore and domestic institutional investors pumped in Rs208.33 crore.

Wind energy major Suzlon (up 5.42%) announced that the company has bagged an order from Gujarat State Fertilizers & Chemicals (GSFC) to set up, operate and maintain wind energy projects totalling to 50.4 MW in Gujarat.

The projects, utilising 24 units of Suzlon's S88-2.1MW wind turbine, will be set up in wind farms operated by Suzlon in Rajkot and Surendranagar districts of the state. This is GSFC's fifth order to Suzlon and is scheduled for completion and commissioning by September 2011.

Areva T&D India (up 1.26%) has bagged two electrical balance of plant (eBOP) contracts from Essar Projects (India) for its upcoming power projects at Tori in Jharkhand and Paradip in Orissa. The combined value of both contracts is about Rs290 crore and the scope will include supply and installation of electrical balance of plant solutions for two 600MW thermal power plants at Tori and four 30MW thermal power units at Paradip.

Private sector lender Yes Bank (up 2.18%) plans to raise up to $500 million (about Rs2,000 crore) during the current fiscal to fund business growth. The board has approved to raise funds by way of issuance of equity capital of up to $500 million in one or more tranches, Yes Bank said today.

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