Post Market report on 23.07.2008

[B. Karthick]

India Stocks Review: Up 6% as UPA trust vote win spurs reform hope
Wednesday, Jul 23

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Bombay Stock Exchange : National Stock Exchange
Sensex: 14942.28, up 838.08 pts (5.9%) : Nifty: 4476.80, 236.70 pts
(5.6%)
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The stock market notched up its highest close in over a month amid
hopes the United Progressive Alliance government would revive stalled
economic reforms after it Tuesday won the trust vote in the Lok Sabha.
Share indices ended up around 6%, with firm overseas cues also
aiding the upside, as crude oil for August delivery fell to $126 a
barrel on New York Mercantile Exchange.
Although markets were expecting the government to survive, the
vote and the margin of victory removes the element of political
uncertainty that has been dogging sentiment for some time.
The Congress Party-led coalition government Tuesday comfortably
won the vote of confidence, with 275 votes in its favour versus 256
votes against.
Sensex ended at 14942.28, up 838.08 points, or 5.9%, from Tuesday.
Intraday, it moved between 14605.02 and 14979.90.
Nifty closed at 4476.80, up 236.70 points, or 5.6%. Intraday, it
moved between 4346.70 and 4491.55.
Turnover on BSE and NSE combined was 279 bln rupees, up 50% from
the previous session.
CNX Mid-cap and S&P CNX 500 ended up 6% each.

GAINERS
Banking and financial shares, which until recently were weighed
down by prospects of rising rates and non-performing loans, saw
renewed buying after Finance Minister P. Chidambaram Tuesday said
government would introduce financial sector reforms.
ICICI Bank ended up 12% at 739 rupees and Housing Development
Finance Corp rose 11% to 2,376 rupees.
Shares of Reliance Anil Dhirubhai Ambani Group companies surged
following the Congress Party-led coalition government's trust vote
victory with the help of the Samajwadi Party.
Anil Ambani was nominated to the Rajya Sabha on support from the
Samajwadi Party some years ago. He is no longer a Member of
Parliament.
Reliance Communications ended up over 12% at 526 rupees, while
Reliance Infrastructure rose 11% to 1,017 rupees.
Capital goods shares rose on hopes of orders as the India-U.S.
nuclear deal is seen going through now.
Siemens surged over 11% to 556 rupees after the company's Apr-Jun
net profit more than doubled to 1.69 bln rupees, above estimates of
1.07 bln rupees.
Bharat Heavy Electricals ended up 11% at 1,773 rupees. There are
hopes government may go forward with disinvestment plans in a number
of state-owned companies, including BHEL.
Tata Communications was up 11.5% at 466 rupees. The company is
another probable candidate for disinvestment.

LOSERS
Cairn India, down 2.5% at 220 rupees, was the worst hit on Nifty
tracking the movement in global crude oil prices.
Select defensive stocks in the pharmaceutical and fast moving
consumer goods space saw profit taking after having gained in the last
few sessions.
Cipla was down 2% at 233 rupees and Hindustan Unilever fell 1% to
231 rupees.

KEY MARKET MOVES
* In the Nifty, 47 rose and 3 fell.
* In the Sensex, 28 rose and 2 fell.
* On BSE, there were 2,266 advances and 438 declines
* BSE Bankex: Up 10%; BSE Capital Goods: up 8.2%
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Bombay Stock Exchange : National Stock Exchange
Sensex: 14942.28, up 838.08 pts (5.9%) : Nifty: 4476.80, 236.70 pts
(5.6%)
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B.Karthick,
Research Analyst