FIRST LIGHT HEADINGS
Ortin Laboratories gets nod to acquire 100% stake in Ortin Biotech
Jubilant Life Sciences’ arm Jubilant Biosys gets milestone payment from AstraZeneca Persistent Systems launches processional services for Cisco Quad CARE assigns ‘CARE AA’ rating to perpetual bond issue of Tata Steel UBI likely to increase ATM outlets to 5000 L&T secures orders worth Rs 4100 crore L&T bags order worth Rs 1,366 crore from GCC countries
MARKET INSIGHT
On Thursday 23 June 2011, Indian markets were finally able to end the slew of weak closing and surged on Thursday, bucking global trends and overlooking the rise in the weekly food inflation. Earlier the flat start of the markets indicated that the pause of the indices may get extended and in the very early morning benchmarks losing ground on weak global cues firmed the speculation, as the US markets closed lower overnight while most of the Asian markets were trading weak. But afterwards the market mood recovered with bluechips taking the lead. Marketmen took the opportunity for value picking and the beaten down sectors started moving up, soon the recovery turned broad based and all the fundamentally strong share witnessed buying with Reliance Industries, that declined in previous session surged after announcing a gas discovery in KG-D9 basin. The company has made discovery in the very first well drilled on its D9 block. Reliance holds the majority 90% interest and is the operator of the deep-sea block KG-DWN-2001/1 (D9) while London-listed Hardy holds 10% interest in the block. The markets momentum gained pace in the afternoon session despite the rise in inflation. The food inflation once again surged after showing sign of moderation in last week, food inflation, as measured by the Wholesale Price Index (WPI), for week ended June 11 surged to 9.13% from 8.96% for the previous week, the impact of rise in inflation was marginally visible on the rate sensitive realty sector that was one of the laggard of the day.
The BSE Sensex gained 188.21 points or 1.07% and settled at 17,738.84. The index touched a high and a low of 17,754.55 and 17,482.21 respectively. 23 stocks advanced against 7 declining ones on the index . The BSE Mid-cap index lost 0.04% while Small-cap index shed 0.25%. On the BSE Sectoral front, Consumer Durables up 4.09%, FMCG up 2.27%, Oil & Gas up 1.94%, IT up 1.17% and Teck up 1.00% were the top gainers. On the flip side, Health Care down 0.55%, Realty down 0.32% and Metal down by 0.08% were the only losers.
The S&P CNX Nifty gained 45.50 points or 0.86% to settle at 5,323.80. The index touched high and low of 5,330.60 and 5,252.25 respectively. 30 stocks advanced against 20 declining ones on the index. The top gainers on the Nifty were ITC up by 3.46%, RCom up 3.36%, RIL up 2.95%, Reliance Capital up 2.64% and HUL up 2.33%. (Provisional)
Most of the Asian equity indices finished the day’s trade in the negative terrain on Thursday as investors booked their profit after a two-day regional rally while sentiment was also dampened by the Federal Reserve’s decision to cut its 2011 US growth forecast. Taiwan Weighted, Hang Seng and Seoul Composite remained the major loser among the Asian peers, however, Chinese Shanghai ended the day’s trade with a gain of about one and a half percent, led by cement and property shares as investors bought into sectors expected to benefit from Beijing’s social housing initiative.
Read more about Indian Equity Research morning report by Mansukh
