Post Market report on 09.07.2008

[K.Karthik Raja]

India Stocks Review: Gain over 4% on overseas cues, short covering
Wednesday, Jul 9

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Bombay Stock Exchange : National Stock Exchange
Sensex: 13964.26, up 614.61 pts (4.6%) : Nifty: 4157.10, up 168.55 pts
(4.2%)
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Short covering in the derivatives segment and positive overseas
cues after a fall in crude oil prices helped the Indian share market
end up
over 4% today.
Easing fears of early elections on hope the ruling United
Progressive
Alliance will muster enough support in the event of a confidence
motion in
Parliament, also added to the upside.
Finance Minister P. Chidambaram said today that general elections
will
take place in Apr-May, as scheduled, which the market took as a sign
of
confidence that the UPA government can stay in power.
Sensex ended near the psychological level of 14000 at 13964.26, up
614.61 points or 4.6% from Tuesday. Intra-day, it moved between
13581.41 and 13998.48.
All Sensex shares ended in positive territory.
Nifty closed at 4157.10, up 168.55 points or 4.2%. Intra-day, it
moved between 3990.90 and 4169.40.
Turnover on BSE and NSE combined was 170 bln rupees, compared with
156
bln rupees Tuesday.
CNX Mid-cap ended up 3.5%, and S&P CNX 500 climbed 4.4%.
Interest rate-sensitive sectors, which were battered in recent
sessions
on fears of high inflation, rose owing to short covering and value
buying
today.
Tata Motors and Hero Honda Motors ended up nearly 8% each, while
Ceat
advanced 4% after the company's Managing Director Paras Chowdhary told
today the company needs to raise product prices another 6% to maintain
profit margins.
Unitech and HDFC Bank ended up 7% and 6%, respectively.

OTHER GAINERS
Crude oil prices remaining below the $140 mark, improved sentiment
for oil retailers such as Bharat Petroleum Corp that ended up over 8%.
Other oil and gas shares also gained, with index heavyweight
Reliance
Industries ending up over 5% at 2,079 rupees. GAIL (India) rose nearly
8%.
Shares of capital goods and power companies extended gains from
the
previous session on hopes of more orders if the India-U.S. deal comes
through. Larsen & Toubro and Power Grid Corp rose 5% and 7%,
respectively.
Mundra Port and Special Economic Zone hit 20% upper circuit at
551.35
rupees as the Supreme Court allowed the company to continue
construction at
Mundra SEZ.
Godrej Industries jumped 13% on news the company will mull a share
buyback on Jul 29.
Anil Dhirubhai Ambani Group companies surged on speculation the
change in
the political equation at the Centre could lead to alteration of
policies in
the group's favour.
Anil Ambani, a former member of the Rajya Sabha, was elected on
support from Samajwadi Party, which has entered into an alliance with
the Congress to bail out the UPA government after the Left withdrew
support on the India-US nuclear deal.
Reliance Infrastructure, up 11% at 836 rupees, was the top Nifty
gainer.
Reliance Communications and Reliance Power ended up 6% and 8.5%,
respectively.

RARE LAGGARDS
Non-ferrous metal companies were among the rare laggards on Nifty
after
shuttling between positive and negative territories for most part of
the
session.
National Aluminium Co, down nearly 1% at 332 rupees, was the sole
laggard
on Nifty as commodity prices are showing signs of easing.

KEY MARKET MOVES
* In the Nifty, 49 rose and one fell.
* In the Sensex, all 30 rose.
* On BSE, there were 2,130 advances and 529 declines
* BSE Realty: Up 6.1%; BSE Power: Up 5.4%; Bank Nifty: Up 4.6%
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Bombay Stock Exchange : National Stock Exchange
Sensex: 13964.26, up 614.61 pts (4.6%) : Nifty: 4157.10, up 168.55 pts
(4.2%)
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B.Karthick,
Research Analyst.