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Market moves northward on firm Asian cues

Market moves northward on firm Asian cues
Category  :  Market Reports
Date  :  Aug-13-2010 11:26

The Indian market trading bullish on the back strong Asian cues and also on the back of bargain hunting after last three days'' losses. The Asian markets managed to rebound with the exporters stocks gained amid reports that Prime Minister Naoto Kan of Japan and Bank of Japan (BOJ) Governor Masaaki Shirakawa may meet next week to discuss possible action to deal with the strong yen. However, US market closed negative on a third consecutive session as stocks fell into negative terrain and stayed there through the close due to surprise rise in initial jobless claims and disappointing numbers from Cisco Systems. Back on the domestic front, local markets are getting the maximum support from the rate sensitive sectors despite the rise in food inflation. Meanwhile there has been a good news for the economic front, as collections of indirect taxes continue to expand robustly, indicating that underlying economic activity remains very strong.On the sectoral front, out of 13 indices, all the indices had advanced in BSE. The leaders in the bullish rally were led by Bankex, FMCG and PSU stocks. The Market breadth, indicating the overall strength of the market, was strong. On BSE out of total shares traded 2,813, shares advanced were 1,791 while 918 shares declined and 104 were unchanged. As per NSE, top gainers, Kotak Bank (up by 2.56%), SBI (up by 2.54%), ITC (up by 2.06%), IDFC (up by 2.05%), HCL Tech (up by 1.87%), Powergrid (up by 1.85%) and Tata Steel (up by 1.84) are the major gainers from the pack along with others.At 11.24 AM BSE SENSEX was at 18,160.89 up by 86.99 points or by 0.48% and the NSE Nifty was at 5,448.8 up by 32.35 points or by 0.59%.The BSE MIDCAP was at 7,654.59 up by 86.68 points or by 1.14% while the BSE SMLCAP was at 9,761.68 up by 116.26 points or by 1.20%.On the macro-economical stand, food price index increased 11.40% in the year to July 31. The fuel price index increased 12.66%. Meanwhile, food inflation boosted from the previous week"s annual increase of 9.53%. The fuel inflation eased from the week-ago reading of 14.26%. In the meantime, the primary articles index rose 15.66%. This is as compared with the previous week"s reading of 14.36%. The wholesale prices increased 10.55% in June from a year earlier, remaining above 10% for the fifth straight month.Industrial growth declined to 7.1% in June from 8.3% a month ago. It snapped an eight-month trend of double-digit rise. Meanwhile, growth in manufacturing constitutes around 80% of the Index of Industrial Production (IIP) to measure factory output. It fell to 7.3% from 8 a year ago. Electricity generation, however, grew by 3.5% from 8% in June, 2009. In the meantime, mining grew the fastest at 9.5%.Essar Shipping Ports & Logistics dropped 8.07% to Rs 109.80 on news that it will demerge its shipping, logistics and oilfields businesses into separate entities as it looks to simplify ownership and unlock value, a top official said on Thursday.Sterlite Industries fell 3.25% to Rs 162.40 as its parent Vedanta Resources is looking to buy stake in Cairn India. Reports yesterday suggested that Vedanta is in talks with UK-based oil major Cairn Energy to buy a part of its stake in the Indian arm. Ranbaxy Laboratories dropped 1.39% to Rs 439.00 on reports that a sharp decline of 48.2% in its PAT to $72 million for the quarter ended June 30.The top gainers of the BSE Sensex pack are SBI (Rs 2856.55, +2.61%), ITC (Rs 156.00, +1.96%), Tata Steel (Rs. 529.00, +1.77%), ICICI Bank (Rs 979.00, +1.56%) and Cipla (Rs.317.50, +1.20%) among others.In BSE, Bankex index was at 12,200.55 up by 172.72 points or by 1.44%. Major gainers were Union Bank (Rs 338.90, +2.93%), SBI (Rs 2856.55, +2.61%) and Yes Bank (Rs 313.70, +2.58%).

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