Key benchmark indices hit fresh intraday high in afternoon trade after European edged higher in early trade. The 50-unit S&P CNX Nifty was currently above the psychological 5,000 mark, having alternately moved above and below that mark in intraday trade. The market breadth was positive. The barometer index, BSE Sensex, was up 112.86 points or 0.69%, up about 119 points from the day`s low and off close to 5 points from the day`s high. Index heavyweight Reliance Industries (RIL) edged higher as the firm continued to mop up its own shares under the ongoing buyback programme. Rail stocks were in demand.
European shares edged higher in early trade. Asian stocks rose for the second day in a row on Tuesday, 29 May 2012, after opinion polls in Greece showed a lead for a party favoring the country`s economic bailout in upcoming elections and amid expectations for a policy stimulus in China to support growth. China is the world`s second biggest economy after the US.
The market edged higher in early trade to hit its highest level in more than 2-1/2 weeks. The Sensex regained positive terrain soon after slipping into the red for a brief period in morning trade. The market trimmed gains after regaining strength in mid-morning trade. The market retained positive zone in early afternoon trade. Key benchmark indices hit fresh intraday high in afternoon trade after European edged higher in early trade.
The market may remain volatile this week as traders roll over positions from the near-month May 2012 series to June 2012 series. The May 2012 derivatives contracts expire on Thursday, 31 May 2012.
At 13:15 IST, the BSE Sensex was up 112.86 points or 0.69% to 16,529.70. The index jumped 118.14 points at the day`s high of 16,534.98 in afternoon trade, its highest level since 10 May 2012. The index fell 6.61 points at the day`s low of 16,410.23 in morning trade.
The S&P CNX Nifty was up 28.75 points or 0.58% to 5,014.40. The index hit a high of 5,017.80 in intraday trade, its highest level since 10 May 2012. The index hit a low of 4,982.30 in intraday trade.
The BSE Mid-Cap index was up 0.33% and the BSE Small-Cap index was up 0.41%. Both the indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1340 shares advanced and 1090 shares declined. A total of 124 shares were unchanged.
Among the 30-share Sensex pack, 24 rose while the rest declined. Maruti Suzuki India (up 2.29%), State Bank of India (up 2.07%), TCS (up 1.59%), Coal India (up 1.41%), Jindal Steel & Power (up 1.4%), Bhel (up 1.24%), Tata Steel (up 1.09%) and ONGC (up 0.98%), edged higher from the Sensex pack.
ITC (down 0.92%), Hindalco Industries (down 0.61%), Bharti Airtel (down 0.53%), DLF (down 0.53%) and HDFC Bank (down 0.19%), edged lower from the Sensex pack.
Index heavyweight Reliance Industries (RIL) rose 0.66% to Rs 705.80, with the stock extending Monday`s 1.33% gains. RIL today, 29 May 2012, said the company bought back 8.2 lakh shares at average price of Rs 700.226 per share on Monday, 28 May 2012. The company cumulatively bought back a total of 2.09 crore till 28 May 2012 under the share buyback programme.
RIL early last week said it has selected Phillips 66`s E-Gas technology for its planned gasification plants at Jamnagar in Gujarat. The planned gasification plants at Jamnagar will be among the largest in the world and will process petroleum coke and coal into synthesis gas utilizing the E-Gas technology, RIL said in a statement. The synthesis gas will be used as a feedstock for a new chemical complex and will fuel the Jamnagar refinery`s existing gas turbine power generation units, RIL said in a statement.
Shares of companies operating in the railway sector edged higher. Kernex Microsystems (India) (up 6.88%), NELCO (up 5.76%), Kalindee Rail Nirman (Engineers) (up 5.03%), Hind Rectifiers (up 4.79%), Stone India (up 4.41%), Titagarh Wagons (up 3.3%) and Texmaco Infrastructure & Holdings (up 1.43%), edged higher.
Top gainers in the BSE Mid-Cap index were, South Indian Bank (up 6.95%), Godfrey Philips India (up 5.69%), Prestige Estates Projects (up 5.31%), GVK Power & Infrastructure (up 4.58%) and Lanco Infratech (up 4.22%).
Top gainers in the BSE Small-Cap index were, Moser Baer India (up 14.48%), Brigade Enterprises (up 11.91%), KS Oils (up 9.14%), Inventure Growth & Securities (up 8.51%) and CMI FPE (up 6.67%).
Foreign institutional investors (FIIs) bought shares worth a net Rs 108.89 crore on Monday, 28 May 2012, as per provisional figures.
The Q4 March 2012 earnings season is drawing towards a close. Investor focus is on the guidance provided by the management for the year ending March 2013 (FY 2013) to gauge the earnings outlook. GAIL (India) and DLF unveil Q4 results tomorrow, 30 May 2012. Mahindra & Mahindra (M&M) and Jaiprakash Associates also unveil FY 2012 results tomorrow.
On macro front, the Q4 March 2012 gross domestic product (GDP) data due on Thursday, 31 May 2012, could provide cues on the Reserve Bank of India`s likely policy stance at its mid-quarter policy review due on 18 June 2012. The Indian economy expanded 6.1% in the October-December quarter from a year earlier, the weakest pace of expansion in more than two years, hurt by slower growth in manufacturing output and a contraction in mining production.
India is jostling for space in energy-rich Myanmar, signing as many as 12 bilateral agreements Monday. The agreements signed by a delegation led by Prime Minister Manmohan Singh covered areas as diverse as air services and agriculture. Mr. Singh`s three-day visit underscores India`s "Look East" policy to deepen ties with countries in Southeast Asia and East Asia, including South Korea, Japan and Vietnam, as well as continue its search for oil and gas supplies to fuel its growing economy.
European equities rose on Tuesday, following strenght in Asian markets where the spotlight fell on the possibility of further policy stimulus in China, though trade looked set to be cautious given fears over Spain`s banks. Key benchmark indices in UK, France and Germany were up by 0.74% to 1.23%.
Asian stocks rose for the second day in a row on Tuesday, 29 May 2012, after opinion polls in Greece showed a lead for a party favoring the country`s economic bailout in upcoming elections and amid expectations for a policy stimulus in China to support growth. China is the world`s second biggest economy after the US. Key benchmark indices in China, Singapore, Hong Kong, Japan, Taiwan and South Korea were up by 0.55% to 2.89%. Indonesia`s Jakarta Composite fell 0.11%.
Chinese media reports on Monday suggested that the National Development and Reform Commission, China`s top economic planner, has approved construction of several new steel plants. The approvals follow Chinese Premier Wen Jiabao last week promised pro-growth policies.
In Greece, opinion polls showed on Saturday, 26 May 2012, that the pro-bailout New Democracy party ahead of rivals in upcoming polls. The reports eased fears that Greece`s exit from the euro-zone was imminent. Greek voters return to the polls on 17 June 2012 after the splintered results of a May 6 parliamentary election left no party able to put together a government.
US former Treasury Secretary Lawrence Summers on Tuesday said he isn`t completely confident that faith can be reestablished in Greece as a permanent euro-zone member. Speaking to reporters in Singapore, Summers said he believed an exit by Greece from the currency bloc could be managed if there wasn`t substantial contagion, but that there was that risk. He added it was difficult to overestimate the magnitude of the challenges Europe faces in achieving the necessary rebalancing. Summers also said he wouldn`t be surprised to see growth in China fall below 7% at some point over the next 10 years, but that such a development didn`t need to be a significant event.
Spanish 10-year bond yields jumped on Monday, 28 May 2012, to their highest level since the European Central Bank injected cheap three-year loans into the banking system in November 2011. Standard & Poor`s cut the ratings on five Spanish banks on Friday, 25 May 2012, and said it believes the country is entering a double-dip recession.
Trading in US index futures indicated that the Dow could gain 102 points at the opening bell on Tuesday, 29 May 2012. US markets were closed for the Memorial Day holiday on Monday.
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