Wednesday Closing Report: Bulls make one more attempt
Moneylife Digital Team 18 August 2010

After ending flat for two days in a row, the market ended on a higher note today. It witnessed a firm opening on the back of supportive global cues. The upmove was aided by stocks from the healthcare, auto and fast moving consumer goods sectors. There was some selling pressure and the indices gave up some of their gains by noon. The weak opening of the European markets pulled the market further down but later value-picking in select scrips resulted in the indices closing off their intraday highs.

The Sensex ended 208 points (1.1%) higher at 18,257. The index swung between a high-low range of 18,286 and 18,067, respectively. The Nifty was up 65 points (1.2%) at 5,479, conquering the psychological level of 5,400 once again. The benchmark rose to a high of 5,488 and touched a low of 5,416 during the trading session.

The market breadth was supportive today. Of the Sensex stocks, 22 advanced while eight declined. A total of 35 stocks on the Nifty ended in the green while 15 ended lower. The BSE Mid-cap index advanced 0.8% and the BSE Small-cap index surged 0.7%.

The top performers on the Sensex were led by Hindalco Industries (up 4.5%), Tata Motors (up 4.2%), HDFC and HDFC Bank (up 3.1% each) and Oil & Natural Gas Corporation (ONGC) (up 2.1%). The Sensex losers were Reliance Communications (RCom) (down 1.1%), Reliance Industries (RIL) and Mahindra & Mahindra (M&M) (down 0.6% each).

BSE Consumer Durables (CD) index was the lone loser in the sectoral space, down 0.2%. The sectoral gainers included Information Technology (IT) (up 2%), Fast Moving Consumer Goods (FMCG) and Metal (up 1.4% each), Technology (TECk) (up 1.3%) and Auto (up 1.2%).

Asian markets ended mixed for yet another day as new worries about the global economic recovery were brought to the fore. Besides, the lacklustre opening by influential bourses also played on investors' sentiments. Jakarta Composite ended 0.6% higher, KLSE Composite was up 0.5%, Nikkei 225 gained 0.8% and Seoul Composite was up 0.4%. On the other hand, Shanghai Composite was down 0.2%, Hang Seng was down 0.5%, Straits Times and Taiwan Weighted were down 0.1% each.

Personal computer sales in India touched 23.7 lakh units during April-June 2010, recording a 34% year-on-year growth, consulting firm IDC India said. Sale of PCs during the period increased by 5.8% quarter-on-quarter.

Desktop PC sales accounted for nearly two-thirds of total PC sales at 15.6 lakh units, representing a 24% increase year-on-year. Sales of notebook computers grew at 61% year-on-year, recording 8.05 lakh shipments.

The US market closed firm on Tuesday on positive earnings reports that overshadowed mixed economic data. Earning reports from Wal-Mart and Home Depot indicate that consumer spending is slowing retuning. Economic data was mixed. Industrial production rose and wholesale prices rose but housing starts suggested that the sector remains weak. The Dow gained 103 points (1%) at 10,405. The S&P 500 gained 13 points (1.2%) at 1,092. The Nasdaq gained 27 points (1.2%) at 2,209.

Foreign institutional investors were net buyers of Rs404 crore in the equities market on Tuesday. Domestic institutional investors were net sellers of Rs 400 crore on the same day.

Satyam Computer Services' (Satyam) (down 0.5%) tainted founder B Ramalinga Raju today secured bail from the Andhra Pradesh High Court, over 17 months after his arrest on charges of allegedly fudging the IT company's accounts.

Mr Raju, who was arrested on 7th January last year and is currently undergoing treatment in a city hospital, was granted bail on the condition he stay in Hyderabad and provision of on two sureties of Rs20 lakh each. With Mr Raju getting bail, all the 10 accused in the Rs14,000 crore Satyam accounting fraud case have been granted bail by various courts.

Anil Dhirubhai Ambani Group (ADAG) firm Reliance Broadcast Network (RBN) today said it has completed its final negotiations with US media conglomerate CBS Corp to form a JV to own and operate TV channels.

RBN, previously known as Reliance Media World (up 5%), will form a 50:50 joint venture with CBS Studios, a division of CBS Corp. The JV will own and /or, operate, market and promote a portfolio of television channels in India, Nepal, Bhutan, Sri Lanka, Bangladesh, the Maldives and Pakistan.

Auto and utility vehicles major Mahindra & Mahindra (M&M) (down 0.6%) today revealed its plans to launch new models to augment its presence in the automobile market in Sri Lanka. The company was also studying the possibility of introducing an electric car, the Mahindra Reva, in Sri Lanka in future.

Mahindra has already established a base in the island nation where it has been selling its range of tractors and utility vehicles for over a decade.

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