Post Market report on 02.07.2008

[B. Karthick]

India Stocks Review: End up 5% on short covering; DLF surges 15%
Wednesday, Jul 2

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Bombay Stock Exchange : National Stock Exchange
Sensex: 13664.62, up 702.94 pts (5.4%) : Nifty: 4093.35, up 196.60 pts
(5.1%)
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Short covering in the derivatives segment helped the Indian share
market snap a three-session losing streak.
It looks like short covering which drove the market up today, plus
the
DLF buyback news improved sentiment.
It seems like a technical bounceback and if it sustains tomorrow
(Thursday), then market can move up further.
There was also value buying in select large-cap stocks, while
positive cues from European markets also aided gains.
Sensex posted its highest intraday gain of 702.94 points since Mar
25 to end at 13664.62, up 5.4% from Tuesday. Intraday, it moved
between 13711.01 and a new 2008 low of 12822.75.
Nifty closed just seven points shy of the 4100-mark at 4093.35, up
196.60 points, or 5.1%. Intraday, it moved between 4107.15 and a new
2008 intraday low of 3848.25.
Turnover on BSE and NSE combined was 220 bln rupees, compared with
170bln rupees Tuesday.
CNX Mid-cap rose 3.5%, while S&P CNX 500 ended up 4.9%.

REALTY U-TURN
BSE Realty index, which has lost nearly 20% in the past four
sessions alone, recouped losses to end 12% higher today, led by gains
in index major DLF after it said it would mull a share buyback Jul 10.
The company today said current share price does not reflect its
intrinsic value and that DLF's cash reserve and low share price were
triggers for the buyback.
DLF shares surged 15% to end at 423 rupees today, still below its
issue Price of 525 rupees.
Short covering in the broader market also helped other realty
players
post gains. Unitech ended up nearly 6%, while Housing Development &
Infrastructure and Indiabulls Real Estate soared nearly 19% and 15%,
respectively.

OTHER GAINERS
Other interest rate-sensitive shares also bounced back with a
vengeance,
CNX Bank Nifty climbing 6% on the back of gains in Punjab National
Bank, up 10%, and index majors ICICI Bank and State Bank of India, up
over 5% each.
Fund managers have been saying that these levels are attractive to
buy and that has contributed to the 700-point gain on Sensex today.
Technology shares rose on defensive buying and hopes of good Apr-
Jun earnings due to rupee weakening against dollar.
Satyam Computer Services and Infosys Technologies ended up 7% and
6%, respectively.
Short covering lifted metal shares like Tata Steel, up 6%.
Other major gainers included stocks like Reliance Natural
Resources, up 13%. IFCI, Ispat Industries, Reliance Capital, and Essar
Oil gained 13%, 11%, 10% and 8%, respectively. Shree Renuka Sugars
soared 21%.

RARE LAGGARDS
Hero Honda Motors, which touched an intraday high of 699.95 rupees
on reporting a better-than-expected 16% on-year rise in June two-
wheeler sales, ended down 0.1% at 680 rupees on profit sales.
HCL Technologies and ITC, down around 2% each, were major laggards
on Nifty.

KEY MARKET MOVES
* In the Nifty, 44 rose and six fell.
* In the Sensex, 28 rose and two fell.
* On BSE, there were 1,586 advances and 1,094 declines
* BSE Metal: Up 5.9%; BSE Capital Goods: Up 5.8%; CNX IT: Up 4.8%
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Bombay Stock Exchange : National Stock Exchange
Sensex: 13664.62, up 702.94 pts (5.4%) : Nifty: 4093.35, up 196.60 pts
(5.1%)
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B.Karthick,
Research Analyst.