FIRST LIGHT HEADINGS
Rise in fuel price to reduces Oil PSUs debt-burden by Rs 21,000 crore FIIs stood as net buyers in equities on June 27, 2011: SEBI Shoppers Stop opens MAC door at New Delhi
Shyam Star Gems gets approval to sell its unit situated at Mumbai and Surat Punj Lloyd surges on bagging order worth Rs 826 crore Nuchem declares lock out at its chemical division
RPP Infra Projects in demand on launching new Sri Lankan venture
MARKET INSIGHT
On Monday 27 June 2011, The Indian markets got a good follow-on rally in the start of the F&O expiry week, bucking somber global cues. The start of the indices was in red and it seemed that markets will consolidate after a huge rally on Friday and some counters might witness profit booking too. But as the trade progressed the sentiments got boosted, mainly tracking the surge in the PSUt oil companies that surged after government decided go with their long pending demand of price hike. The government on Friday, after the markets hours hiked the price of diesel by Rs 3 per litre, kerosene by Rs 2 per litre and domestic liquid petroleum gas (LPG) by Rs 50 per cylinder. Simultaneously, the government removed the 5 per cent Customs duty on crude oil, brought down the import duty on petrol and diesel from 7.5 per cent to 2.5 per cent and reduced the excise duty on diesel by Rs 2.6 to Rs 2 per litre. The oil companies were in jubilant mood as from the global front too the news was supportive, after the sharp plunge the NYMEX crude continued to trade near a $90 a barrel mark and Brent crude remained below $104 mark. After the early morning recovery markets never looked back, rather with positive start of the European markets, the domestic markets sentiments got boosted and they surged to touch the high points of the day, however some profit booking took the indices off the highs but still they managed to snap the session with considerable gains. Meanwhile the rally in the domestic markets was not limited to the oil sector only but it was a broad based rally with broader indices too fully participating in it.
The BSE Sensex gained 180.60 points or 0.99% and settled at 18,421.28. The index touched a high and a low of 18,494.11 and 18,132.70 respectively. 23 stocks advanced against 7 declining ones on the index . The BSE Mid-cap index gained 0.81% while Small-cap index gained 0.78%. On the BSE Sectoral front, PSU up 1.95%, Capital Goods up 1.77%, Bankex up 1.67%, Auto up 1.51% and Oil & Gas up 1.33% were the top gainers. On the flip side, Realty down 0.68%, Consumer Durables down by 0.54% and FMCG down 0.45% were the only losers.
All the Asian equity indices barring Shanghai Composite finished the day’s at 19.99 from its previous close of 19.32 on Friday. The S&P CNX Nifty gained 59.00 points or 1.08% to settle at 5,530.25. The index touched high and low of 5,552.65 and 5,434.25 respectively. 39 stocks advanced against 11 declining ones on the index. (Provisional)
All the Asian equity indices barring Shanghai Composite finished the day’s trade in the positive terrain on Monday amid fears of a spreading European debt crisis after a ratings agency placed Italian banks on a review for a possible downgrade. Investors in the region remained spooked by the pessimism in Europe where Moody’s said it had put the ratings of 16 Italian banks on review for possible downgrade and had changed the outlook to negative from stable for a further 13 banks.
Read more about Indian Equity Research morning report by Mansukh
