The market surged today after a two-day rout on speculation more funds will move to emerging markets after an emergency 75 basis points announced by the US Federal Reserve on Tuesday, 22 January 2008. Despite the sharp spurt, the market breadth was negative on BSE.
Trading was choppy throughout the day. The market opened with a spurt but immediately pared gains. It started firmed up again in mid-morning trade supported by firm Asian markets. European markets opened higher but most of them slipped in the red as the day progressed.
The BSE Sensex advanced 931.61 points or 5.57% to 17,661.55, as per provisional closing. Sensex today registered its biggest ever intra-day rise in absolute terms. It had surged to an intra-day high of 17,997.11. At the day's high, the Sensex gained 1267.17 points. Sensex hit a low of 16,951.03 in early trade. At the day's low, the Sensex was up 223.02 points for the day.
The broader CNX S&P Nifty surged 318.95 points or 6.51% to 5,218.25 as per provisional closing. It struck a high of 5,328.05 in mid-afternoon trade.
The US Federal Reserve in a surprise move on Tuesday, 22 January 2008, cut Fed funds rate and discount rate by 75 basis points each. The Fed funds rate is now at 3.5%. It is the largest rate cut in one shot for the first time in 24 years. The US central bank's move followed two days of steep losses in Asian and European equities on worries that a deteriorating US economy would drag other regions down with it.
The total turnover on BSE amounted to Rs 7099 crore as compared to Rs 5545 crore by 14:30 IST.
Despite the rally, the market breadth was negative on BSE: 1401 shares declined as compared to 1302 that rose. 23 shares remained unchanged.
The BSE Mid-Cap index surged 8.15% to 7,789.31 and the BSE Small-Cap index gained 3.96% to 10,425.34, as per provisional closing
All the 30-members of Sensex pack advanced.
India's largest power utility company Reliance Energy surged 16.76% to Rs 2004 after the company today said it had won a railway project worth Rs 2500 crore from the Delhi Metro Rail Corporation, in consortium with Spain's CAF. It was the top gainer from Sensex pack.
India's largest generation company in terms of net profit National Thermal Power Corporation galloped 13.25% to Rs 222.75 on high volumes of 65.99 lakh shares. As per reports the company plans to invest Rs 1,729 crore for development of the Jharkhand coal mine.
IT pivotals saw value buying. Satyam Computers (up 10.25% to Rs 391), TCS (up 7.47% to Rs 859), Infosys (up 2.86% to Rs 1417), and Wipro (up 1.43% to Rs 435) logged gains
Banking and financial shares surged on hopes of a rate cut from the Reserve Bank of India following the Fed rate cut. India's largest dedicated housing finance company in terms of revenue Housing Development Finance Company surged 3.21% to Rs 2560.
ICICI Bank, the country's largest private sector bank in terms of net profit, gained 4.89% to Rs 1179.70. State Bank of India, the country's largest bank in terms of net profit vaulted 8.56% to Rs 2344
HDFC Bank jumped 6.83% to Rs 1538. On Monday, 21 January 2008, HDFC Bank reported 45.2% rise in net profit to Rs 429.36 on on 59.70% rise in total income to Rs 3405.79 crore in Q3 December 2007 over Q3 December 2006.
India'a largest private sector firm by market capitalization and oil refiner Reliance Industries surged 8.48% to Rs 2558. 13.10 lakh shares changed hands on the counter on BSE
India's top commercial vehicles maker by sales Tata Motors rose 1.76% to Rs 669.80 on reports that the company has signed a development contract with Chrysler LLC for developing electric vehicles.
European markets, which began trading after Indian markets, slipped into the red. Key benchmark indices in Germany (down 1.51% to 6,667.45), France (down 0.23% to 4,831.33), and United Kingdom (down 0.19% to 5,729.40) declined.
Asian markets, which began trading before Indian markets, were trading higher today 23 January 2008. Hong Kong's Hang Seng (up 10.72% at 24,090.17), China's Shanghai Composite (up 3.14% to 4,703.77), Japan's Nikkei (up 2.04% at 12,829.06), and South Korea's Seoul Composite (up 1.21% at 1,628.42) advanced.
However, Taiwan's Taiwan Weighted slipped 2.29% at 7,408.40
The Dow Jones industrial average which was down 465 points at one point of time staged a solid intra-day rebound to close 128.11 points lower at 11,971.19 on Tuesday after the Fed rate cut. The Standard & Poor's 500 index, fell 14.69, or 1.11%, to 1,310.50, while the Nasdaq Composite index lost 47.75, or 2.04%, to 2,292.27.
Back home market suffered fall for the seventh straight day on Tuesday, 22 January 2008 triggered by selling by foreign institutional investors (FIIs), margin calls and weak global markets. The BSE Sensex plunged 875.41 points or 4.97% to 16,729.94, on Tuesday 22 January 2008. The S&P CNX Nifty lost 309.50 points or 5.94% to settle at 4,899.30, on Tuesday 22 January 2008.
As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 4265.19 crore on Tuesday, 22 January 2008, their highest single day outflow since they started investing in the market in 2001. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 2278.71 crore on Tuesday, 22 January 2008.
FIIs were net buyers to the tune of Rs 7,669.88 crore in the futures & options segment on Tuesday, 22 January 2008. According to data released by the NSE, FIIs were net buyers of index futures to the tune of Rs 2,823.06 crore and sold index options worth Rs 137.26 crore. They were net buyers of stock futures to the tune of Rs 4,989.56 crore and sold stock options worth Rs 5.49 crore.
Buying from insurance firms and mutual funds has supported the market at declines in recent months. Insurance firms have been raising lots of funds through unit-linked insurance plans with high weightage for equity. The money is being pumped in the secondary market. It now remains to be seen whether the investors in a unit-liked insurance plan (ULIP) stick to a plan with high exposure to equity if the market continues to remain weak. Insurance companies provide ULIP investors an option to switch over to debt funds from equity funds with certain restrictions.
Fundamentals of the Indian economy remain strong. Corporate profits continue to grow at a good pace
Meanwhile, Bhartiya Janata Party (BJP) has decided to take a measured approach to the crisis with no demand for the resignation of Finance Minister P Chidambaram, reacting to second sharp day of market meltdown on 22 January 2008. Instead, party president Rajnath Singh has asked party workers to wait at least for a week and allow the panic to die down.
Trading was choppy throughout the day. The market opened with a spurt but immediately pared gains. It started firmed up again in mid-morning trade supported by firm Asian markets. European markets opened higher but most of them slipped in the red as the day progressed.
The BSE Sensex advanced 931.61 points or 5.57% to 17,661.55, as per provisional closing. Sensex today registered its biggest ever intra-day rise in absolute terms. It had surged to an intra-day high of 17,997.11. At the day's high, the Sensex gained 1267.17 points. Sensex hit a low of 16,951.03 in early trade. At the day's low, the Sensex was up 223.02 points for the day.
The broader CNX S&P Nifty surged 318.95 points or 6.51% to 5,218.25 as per provisional closing. It struck a high of 5,328.05 in mid-afternoon trade.
The US Federal Reserve in a surprise move on Tuesday, 22 January 2008, cut Fed funds rate and discount rate by 75 basis points each. The Fed funds rate is now at 3.5%. It is the largest rate cut in one shot for the first time in 24 years. The US central bank's move followed two days of steep losses in Asian and European equities on worries that a deteriorating US economy would drag other regions down with it.
The total turnover on BSE amounted to Rs 7099 crore as compared to Rs 5545 crore by 14:30 IST.
Despite the rally, the market breadth was negative on BSE: 1401 shares declined as compared to 1302 that rose. 23 shares remained unchanged.
The BSE Mid-Cap index surged 8.15% to 7,789.31 and the BSE Small-Cap index gained 3.96% to 10,425.34, as per provisional closing
All the 30-members of Sensex pack advanced.
India's largest power utility company Reliance Energy surged 16.76% to Rs 2004 after the company today said it had won a railway project worth Rs 2500 crore from the Delhi Metro Rail Corporation, in consortium with Spain's CAF. It was the top gainer from Sensex pack.
India's largest generation company in terms of net profit National Thermal Power Corporation galloped 13.25% to Rs 222.75 on high volumes of 65.99 lakh shares. As per reports the company plans to invest Rs 1,729 crore for development of the Jharkhand coal mine.
IT pivotals saw value buying. Satyam Computers (up 10.25% to Rs 391), TCS (up 7.47% to Rs 859), Infosys (up 2.86% to Rs 1417), and Wipro (up 1.43% to Rs 435) logged gains
Banking and financial shares surged on hopes of a rate cut from the Reserve Bank of India following the Fed rate cut. India's largest dedicated housing finance company in terms of revenue Housing Development Finance Company surged 3.21% to Rs 2560.
ICICI Bank, the country's largest private sector bank in terms of net profit, gained 4.89% to Rs 1179.70. State Bank of India, the country's largest bank in terms of net profit vaulted 8.56% to Rs 2344
HDFC Bank jumped 6.83% to Rs 1538. On Monday, 21 January 2008, HDFC Bank reported 45.2% rise in net profit to Rs 429.36 on on 59.70% rise in total income to Rs 3405.79 crore in Q3 December 2007 over Q3 December 2006.
India'a largest private sector firm by market capitalization and oil refiner Reliance Industries surged 8.48% to Rs 2558. 13.10 lakh shares changed hands on the counter on BSE
India's top commercial vehicles maker by sales Tata Motors rose 1.76% to Rs 669.80 on reports that the company has signed a development contract with Chrysler LLC for developing electric vehicles.
European markets, which began trading after Indian markets, slipped into the red. Key benchmark indices in Germany (down 1.51% to 6,667.45), France (down 0.23% to 4,831.33), and United Kingdom (down 0.19% to 5,729.40) declined.
Asian markets, which began trading before Indian markets, were trading higher today 23 January 2008. Hong Kong's Hang Seng (up 10.72% at 24,090.17), China's Shanghai Composite (up 3.14% to 4,703.77), Japan's Nikkei (up 2.04% at 12,829.06), and South Korea's Seoul Composite (up 1.21% at 1,628.42) advanced.
However, Taiwan's Taiwan Weighted slipped 2.29% at 7,408.40
The Dow Jones industrial average which was down 465 points at one point of time staged a solid intra-day rebound to close 128.11 points lower at 11,971.19 on Tuesday after the Fed rate cut. The Standard & Poor's 500 index, fell 14.69, or 1.11%, to 1,310.50, while the Nasdaq Composite index lost 47.75, or 2.04%, to 2,292.27.
Back home market suffered fall for the seventh straight day on Tuesday, 22 January 2008 triggered by selling by foreign institutional investors (FIIs), margin calls and weak global markets. The BSE Sensex plunged 875.41 points or 4.97% to 16,729.94, on Tuesday 22 January 2008. The S&P CNX Nifty lost 309.50 points or 5.94% to settle at 4,899.30, on Tuesday 22 January 2008.
As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 4265.19 crore on Tuesday, 22 January 2008, their highest single day outflow since they started investing in the market in 2001. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 2278.71 crore on Tuesday, 22 January 2008.
FIIs were net buyers to the tune of Rs 7,669.88 crore in the futures & options segment on Tuesday, 22 January 2008. According to data released by the NSE, FIIs were net buyers of index futures to the tune of Rs 2,823.06 crore and sold index options worth Rs 137.26 crore. They were net buyers of stock futures to the tune of Rs 4,989.56 crore and sold stock options worth Rs 5.49 crore.
Buying from insurance firms and mutual funds has supported the market at declines in recent months. Insurance firms have been raising lots of funds through unit-linked insurance plans with high weightage for equity. The money is being pumped in the secondary market. It now remains to be seen whether the investors in a unit-liked insurance plan (ULIP) stick to a plan with high exposure to equity if the market continues to remain weak. Insurance companies provide ULIP investors an option to switch over to debt funds from equity funds with certain restrictions.
Fundamentals of the Indian economy remain strong. Corporate profits continue to grow at a good pace
Meanwhile, Bhartiya Janata Party (BJP) has decided to take a measured approach to the crisis with no demand for the resignation of Finance Minister P Chidambaram, reacting to second sharp day of market meltdown on 22 January 2008. Instead, party president Rajnath Singh has asked party workers to wait at least for a week and allow the panic to die down.
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