Sensex crosses 14,500 mark in opening session; Good Buying in the Mid and Small cap space: Keep adding Southern Online Bio Technologies Ltd & Premier Explosives Ltd on all declines, both are going to outshine the markets in the coming days: KEI Industries Ltd recommended yesterday is doing well: Kernex Micro System Ltd is also doing well: Duncans Industries Ltd recommended at a slightly higher level hit the buyer freeze today in early trade. The company has diversified into read estate long back. It is from a well known and reputed industrial house: Exit G M Breweries Ltd on every rise: Jainco Projects Ltd recommended long back as highly speculative pick, also hits the buyer freeze. But avoid the company for the time being: Lot of "Junk Stocks" are hitting the buyer freeze, please be very careful on this front and take due caution while cherry-picking the scrips, for investments: HS India Ltd, a purely speculative scrip has started to rise again. This could go up to Rs.42, but please remember it is very speculative, please be very careful:
The benchmark index, BSE 30-share Sensex, crossed the 14,500 mark in opening session to strike an intra-day high of 14,500.64 as buying continued in index pivotals.
Index heavyweight Reliance Industries (RIL) struck an all-time high of Rs 1785 in opening trade.
However, the market exhibited high volatility in the opening session. At 10:21 IST, the Sensex was up 13.91 points to 14,466.69. It opened higher at 14,490.03, tracking flat global markets. The all-time high level for the benchmark Sensex is 255 odd points away from 14,723.88 hit on 9 February 2007.
But the robust set of FIIs and mutual fund inflows are driving the markets higher in the past few sessions. FIIs have been on a buying spree as they purchased $747 million in equities in the last four sessions from 17 May to 22 May 2007. They bought shares worth a net $113.3 million on 21 May 2007.
Domestic institutions also provided support to the markets as they pumped Rs 1,145 crore in Indian equity market in the last four sessions from 17 May to 22 May 2007. They bought shares worth Rs 314.4 crore on 21 May 2007.
The total turnover on BSE amounted to Rs 814 crore.
The market breadth was strong on BSE with 1,001 shares advancing as compared to 678 that declined.
Among the Sensex pack, 17 advanced while the rest declined.
Bajaj Auto bounced back from a sharp slump and was up 1.91% to Rs 2237 on 70,802 shares. It was the top gainer. Prior to this Bajaj Auto was on a losing streak, declining a little under 19% in the previous four trading sessions after the surprise revelation that Allianz — Bajaj’s partner in its two insurance ventures — has a ‘call option’ to buy up to 74% at a nominal price. This was the biggest disappointment in the demerger plan.
The sporadic selling began after the company unleveled its demerger scheme, during trading hours on 17 May 2007, along with its results, which triggered a flurry of rating downgrades by brokerage houses. Disappointment about the post-demerger structure and lack of clarity about future business plans were cited as the main reasons for the downgrades.
Most analysts expected Bajaj Auto to remain the majority partner, while allowing Allianz to raise its stake up to 49%. They see a high possibility of the government raising foreign investment limit in insurance sector to 74% and Allianz exercising the option to hike the stake.
The insurance business of Bajaj Auto was valued at around Rs 800 per share. But going by the new structure, the value has been trimmed to Rs 300 per share. So the fall was more of a realignment to its fair value of Rs 2,250.
PSU engineering major Bhel rose 1.10% to Rs 2708. The stock is rallying ahead of its record date of 1 June 2007 for the proposed 1:1 bonus issue. The company has earmarked about Rs 3,200 crore for investment in the Eleventh Five-Year Plan period to increase manufacturing capacity from the current 6,000 Mega Watt (MW) to 15,000 MW per annum.
Index heavyweight Reliance Industries (RIL) was down 0.10% to Rs 1773 on 89,046 shares. It struck an all time high of Rs 1785 in opening trade.
ONGC was the top loser, down 0.93% to Rs 917.40 on 40,970 shares.
REL (down 0.89% to Rs 546) and ITV (down 0.76% to Rs 169.40), were the other losers.
The Nikkei average rose0.41% on Wednesday as shares of Japan's three largest banks extended gains on expected higher profits this year. Japan's banking sector has lost some 24% since hitting a seven-year high in April last year, due to concern about a legal crackdown at their affiliated consumer credit companies. The Nikkei advanced 71.69 points at 17,751.74 by the close of morning trade. The broader TOPIX index was up 0.78% at 1,745.01.
Wall Street ended an erratic session little changed yesterday as investors upbeat about the latest round of takeover activity remained hesitant to take the market higher ahead of new economic data. While stocks moved sideways, Treasury yields rose to a three-month high.
The Dow Jones industrial Average (DJIA) fell 2.93 points, or 0.02%, to 13,539.95.
Broader stock indexes were mixed. The Standard & Poor's 500 slipped 0.98 points, or 0.06%, to 1,524.12. The index, considered by market professionals as the best indicator of stock performance, passed its record close of 1,527.46 on Monday and again on Tuesday for the first time since 2000. However, the S&P remains well below its trading high of 1,552.87, reached in March 2000.
The Nasdaq Composite index, which has lagged the other major indexes in recovering from Wall Street's prolonged slump early in the decade, rose 9.23 points, or 0.36%, to 2,588.02.
Crude oil prices dropped below $65 a barrel as investors sold contracts before their expiration yesterday, and before the US government's weekly inventory report. The June contract for light, sweet crude, which expired yesterday, 22 May 2007, lost $1.30 to settle at $64.97 a barrel on the New York Mercantile Exchange. The July contract also fell $1.36 cents to close at $65.51 a barrel.
July Brent crude slipped 97 cents to $69.52 a barrel on the ICE Futures exchange. [With Inputs from the internet]
.jpeg)
Comments