The key benchmark indices remained firm in mid-afternoon trade. The market breadth was weak in contrast to a strong breadth earlier in the day. The market had galloped in the early trade as fears of a global turmoil in credit markets eased after a steep interest rate cut by the US Federal Reserve and following better-than-expected results from two major investment banks -- Goldman Sachs Group and Lehman Brothers Holdings. European markets which opened after Indian market, were in green in early trade. IT, oil and gas, metal and banking stocks surged. Satyam Computer Services and Wipro were major gainers from Sensex pack. The BSE Small Cap index declined. At 14:21 IST, the 30-share BSE Sensex was up 345.04 points or 2.31% at 15,176.32. It hit a high of 15,465.81 in early trade. At days high, Sensex rose 632.35 points. Sensex rose 323.33 points at the day's low of 15,156.79 hit in mid-afternoon trade. The broader based S&P CNX Nifty was up 101.6 points or 2.24% at 4,634.60. The US Federal Reserve on Tuesday 18 March 2008 cut its key interest rate by three-quarters of a percentage point. Though the cut was smaller than some market participants had expected, investors focused on the likelihood of future cuts. Wall Street expects the Fed to cut interest rates further next month, but any future cuts are likely to be smaller. US investment banks Goldman Sachs and Lehman Brothers posted better-than-expected quarterly earnings, providing evidence that bank profits were intact despite the deepening credit crisis. The market breadth was negative: on BSE 1,020 shares advanced as compared to 1,581 shares that declined. 44 shares remained unchanged. The BSE Mid-Cap index rose 0.65% to 6,073. BSE Small-Cap index was down 0.32% at 7,341.95. Oil & Gas stocks rose. Indias largest private sector company in terms of market capitalisation and oil refiner Reliance Industries rose 2.71% to Rs 2,203.55. Indian Oil Corporation (up 2.9% to Rs 440.50), Cairn India (up 2.91% to Rs 226.90), Gail India(up 1.65% to Rs 415.90) and ONGC (up 1.55% to Rs 1,001.90) edged higher. IT stocks rose. Wipro (up 7.42% to Rs 386.60), Satyam Computer Services (up 6.13% to Rs 393.25), Tata Consultancy Services (up 2.04% to Rs 834) and Infosys (up 2.7% to Rs 1,349.90) edged higher. Metal stocks rose. Steel Authority of India (up 6.19% to Rs 201.25), National Alluminium Company (up 4.38% to Rs 448.05), Sterlite Industries (up 2.72% to Rs 711.50), Tata Steel (up 2.31% to Rs 654) and Hindalco Industries (up 1.11% to Rs 163.50) edged higher. Banking stocks surged. HDFC Bank (up 5.75% to Rs 1,302), ICICI Bank (up 3.96% to Rs 798.35) and State Bank of India (up 2% to Rs 1,635) edged higher. From the sensex pack, Jaiprakash Associates (up 5.48% to Rs 211.65), Tata Motors (up 3.55% to Rs 641), Bharti Airtel (up 3.2% to Rs 782.95), ACC (up 2.79% to Rs 780) , Larsen & Toubro (up 3.04% to Rs 2,848.04) and Ambuja Cements (up 2.39% to Rs 122) were major gainers. Indias second largest telecom services provider by sales Reliance Communications (RCom) rose 3.54% to Rs 515. The company is reportedly planning to set up WiMax networks across 50 countries in the next three years to move into the global telecommunication market. To get a headstart, the telecom major is planning to acquire a European WiMax operator in a $300-400 million (Rs 1,200-1,600 crore) deal. IL&FS Investment Managers rose 4.37% to Rs 109.95 after company said its board will meet on 1 April, 2008 to consider the issue of bonus shares. Pritish Nandy Communications rose 3.24% to Rs 43 after company announced that it has joined hands with DQ Entertainment International, one of the world's leading animation, game art and film production companies, to co-develop and co-produce 6 movies in the next 3 to 4 years time within a budget of $45 million. The Dow Jones Industrial Average surged 420.41 points or 3.51% at 12,392.66 on Tuesday, 18 March 2008. The Nasdaq Composite Index soared 91.25 points or 4.19% at 2,268.26. European markets were in green. Frances CAC, Germanys DAX and UKs FTSE 100 were up by 0.07% to 0.82%. In Asia on Wednesday, 19 March 2008, key benchmark indices in Hong Kong, Japan, South Korea, Singapore, Taiwan and China were up by 0.35% to 2.53%. Back home, reports that top Indian corporates have paid higher advance tax in the fourth installment of 15 March 2008, has raised expectations of good Q4 March 2008 results. However, this being a curtailed trading week, traders are unlikely to build large positions. The market remains closed on Thursday (20 March 2008) on account of Id-E-Milad and on Friday (21 March 2008) on account of Good Friday. As per provisional data, FIIs sold shares worth a net Rs 1011 crore on Tuesday, 18 March 2008. Domestic funds bought shares worth a net Rs 177.33 crore. FIIs were net buyers of Rs 1,315.09 crore in the futures & options segment on Tuesday. FIIs were net buyers of index futures to the tune of Rs 1,017.39 crore and bought index options worth Rs 8.13 crore. They were net buyers of stock futures to the tune of Rs 291.39 crore and sold stock options worth Rs 1.82 crore. A torrent of bad news spooked bourses in the past few days with buyers deserting the market. Adding to the woes of domestic bourses already hit by tumbling global markets were earnings downgrade recently by brokerages of ICICI Bank, Indias biggest private sector bank in terms of net profit, and Larsen & Toubro, Indias biggest engineering and construction firm in terms of order book; lower-than-expected industrial production data for January 2008; and a surge in inflation. The hike in short-term capital gains tax and alteration of tax treatment of the Securities Transaction Tax (STT) in Union Budget 2008-09 announced on 29 February 2008 has earlier dented sentiment. Buyers have stayed away from the bourses on continued uncertainty about the extent and duration of the credit crisis caused by the defaults in the US sub-prime mortgage market. |