Post Market report on 25.06.2008

[B. Karthick]

India Stocks Review: Up on short covering after 5 days of losses
Wednesday, Jun 25

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Bombay Stock Exchange : National Stock Exchange
Sensex: 14220.07, up 113.49 pts (0.8%) : Nifty: 4252.65, up 61.55 pts
(1.5%)
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Snapping a five session losing streak, local share indices ended
up
around 1% amid high volume today, as investors covered short positions
a day
ahead of expiry of the June futures contract and on firm overseas
markets.
Market opened down over 2% after Reserve Bank of India late
Tuesday hiked
banks' cash reserve ratio and repo rate by 50 basis points each, but
recouped
losses shortly as the measures were expected and mostly factored into
share
prices.
A section of the market believes that most negative triggers are
now out of the way, at least for the time being.
Today's gains are largely due to short covering, and as the (RBI)
rate hike was mostly discounted.
It is a good time for long-term investors to buy, as many shares
are trading at lifetime lows.
Sensex ended at 14220.47, up 113.49 points or 0.8% from Tuesday.
Intraday, it hit a low of 13736.01 and a high of 14247.16.
Nifty closed at 4252.65, up 61.55 points or 1.5%. Intraday it
moved between 4093.20 and 4264.55.
Turnover on BSE and NSE combined was 176 bln rupees, compared with
172 bln rupees in the previous session.
CNX Mid-cap and S&P CNX 500 ended up around 1% each.
Investors also ignored the continued stand-off between the Left
and United Progressive Alliance on the India-U.S. nuclear deal.
The Left will reject any "mid-path" proposal mooted by the
government to
resolve differences over the nuclear deal, a Left representative of
the United Progressive Alliance-Left Front panel on the issue told
today.

LOSERS
Shares of technology companies were the worst hit on Nifty on
profit taking, and as the rupee rose against the dollar.
Wipro ended down 3.5% at 454 rupees, and Infosys Technologies fell
3% to
1,747 rupees.
Housing Development Finance Corp ended down over 4% at 2,169
rupees. The
stock was the worst hit on Nifty, and fell more than other frontline
financial shares as it has risen 4% in the last two sessions.
Other bank shares ended off lows, State Bank of India and ICICI
Bank fell
1% each to 1,194 rupees and 698 rupees, respectively.
Auto shares also managed to end off lows. Hero Honda Motors closed
down 1% at 695 rupees, compared with a 4% decline earlier in the
session.
Power Grid Corp and ITC, down nearly 3% each, at 79 rupees and 186
rupees, were other major laggards on Nifty.

GAINERS
Shares of real estate companies recouped losses to end higher as
investors covered short positions in the futures and options segment.
BSE Realty index, which was down 4% earlier in the session, ended
up over
2%.
Unitech, up nearly 8% at 184 rupees, was the top Nifty gainer
ahead of its Jan-Mar earnings Friday, while DLF gained 4% at 459
rupees.
Idea Cellular ended up nearly 3% after the company said it will
buy 40.8%
stake in Spice Communications at 77.30 rupees per share.
Spice Communications surged 32% to end at 72 rupees.
Oil & Natural Gas Corp ended up over 1% at 865 rupees. The company
reported a net profit of 26.27 bln rupees for Jan-Mar, while total
income was 176.60 bln rupees.
Heavyweight Reliance Industries ended up nearly 4% at 2,136
rupees,
extending gains for the third straight session.

KEY MARKET MOVES
* In the Nifty, 30 rose and 20 fell.
* In the Sensex, 19 rose and 11 fell.
* On BSE, there were 1,370 advances and 1,264 declines.
* CNX IT: Down 2.15%; CNX Bank Nifty: Down 0.2%
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Bombay Stock Exchange : National Stock Exchange
Sensex: 14220.07, up 113.49 pts (0.8%) : Nifty: 4252.65, up 61.55 pts
(1.5%)
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B.Karthick,
Research Analyst.