Post Market Report on 29.08.2008

[B. Karthick]

India Stocks Review: End up over 3% on inflation fall; banks lead
Friday, Aug 29

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Bombay Stock Exchange : National Stock Exchange
Sensex: 14564.53, up 516.19 pts (3.7%) : Nifty: 4360.00, up 146.00 pts
(3.5%)
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A week-on-week drop in inflation and firm cues from overseas
markets caused local share indices to end up over 3%, near the day's
high.
Today's rally is being termed as a relief rally after a sharp drop
yesterday (Thursday). A decline in inflation fuelled gains in the
banking and realty space, which led today's market.
Since India's Apr-Jun GDP growth at 7.9%, against 9.2% last year,
did not deviate much from expectations of 8.0%, market was able to
extend gains.
Sensex ended at 14564.53, up 516.19 points, or 3.7%, from
Thursday. Intraday, it moved between 14279.02 and 14586.16.
Nifty closed at 4360.00, up 146.00 points, or 3.5%. Intraday, it
moved between 4230.60 and 4368.80.
CNX Midcap and S&P CNX 500 indices ended up 2.8% and 3.3%,
respectively.
Turnover on BSE and NSE combined was 160.50 bln rupees.
Short covering on hopes of Reserve Bank of India softening its
monetary stance after inflation for the week to Aug 16 eased to 12.40%
from 12.63% a week earlier gave a boost to interest rate-sensitive
shares.
Bank shares led gains as investors also resorted to accumulating
stocks in the sector, which has been battered in recent months.
State Bank of India, up over 7% at 1,404 rupees, was the top
gainer on Nifty, while Punjab National Bank and ICICI Bank followed
closely, rising nearly 7% and 6%, respectively.
BSE Realty index surged 5% on short covering, led by Indiabulls
Real Estate, up nearly 12%. DLF and Unitech gained 5% and 4%,
respectively.
As concerns over a rate hike abated, capital goods companies,
which have major capex plans underway, also gained.
Bharat Heavy Electricals ended 5% higher, helped by an 11.55-bln-
rupee power project order in Punjab.
Shyam Telecom climbed 10% on a report it may get Code Division
Multiple Access spectrum in Mumbai and Delhi circles today.
PNB Gilts shares hit 5% upper circuit on BSE on news Edelweiss
Capital and Goldman Sachs have made bids to buy Punjab National Bank's
74.07% stake in the company.
A rebound in index heavyweight Reliance Industries, after having
fallen in four straight sessions, also helped market hold on to gains.
RIL shares ended up 3%.
Asahi India Glass ended down 2% on profit sales after having
touched an intraday high of 63.40 rupees on a block deal of 5.82 mln
shares at 51.55 rupees a share.
Profit sales also weighed on shares of Akruti City, which ended 3%
lower, while Cairn India remained the sole laggard on Nifty as global
crude oil prices eased to around $115 a barrel on New York Mercantile
Exchange.
Cairn India ended down 0.5% at 248.50 rupees.

KEY MARKET MOVES
* In the Nifty, 49 rose and one fell.
* In the Sensex, all 30 rose.
* On BSE, there were 1,851 advances and 790 declines.
* CNX Bank Nifty: Up 6.7%; BSE Metal: Up 3.5%; BSE Capital Goods:
Up 3.4%
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Bombay Stock Exchange : National Stock Exchange
Sensex: 14564.53, up 516.19 pts (3.7%) : Nifty: 4360.00, up 146.00 pts
(3.5%)
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B.Karthick
Research Analyst.