Sensex pulls out of tailspin

[love_gundu22]

Sensex pulls out of tailspin

After three consecutive days of fall, stock markets made a smart rebound today on the back of big buying by mutual funds and foreign investors, though the recovery was marked by large swings intra-day, with bulls and bears fighting hard to wrest control.

The benchmark Bombay Stock Exchange (BSE) Sensex gained nearly 186 points (1.4 per cent), after losing over 800 points in two days of correction triggered by weak industrial growth figures, a hike in the cash reserve ratio, and fears of costly stock valuations. The broad-based S&P CNX Nifty lifted 48.30 points (1.4 per cent) to 3,765.20.

The Sensex showed swings of about 400 points — the index went below yesterday's close intra-day — before buying by mutual funds and foreign investors saved the day.

Analysts said they expected the market to see a correction of at least another couple of hundred points from here, as stock valuations were still tilted towards “unrealistic” levels.

“We expect the Sensex to stabilise at around the 12,500 level. The valuations are still at a stretched level,” Rochak Gupta, a research analyst with Almondz Capital Market Pvt Ltd, said.

Banking stocks, which have seen the maximum correction, surged ahead today, with State Bank of India gaining 4.1 per cent to Rs 1,228, and ICICI Bank up 3.07 per cent to Rs 830.30. The BSE Bankex was the biggest gainer among sectoral indices with a nearly three per cent jump.

Among Sensex stocks, Reliance Communications was the biggest gainer, reaching Rs 433.15, a jump of 7.36 per cent.

Grasim (up 4.29 per cent to Rs 2,613.85), Dr Reddy's (up 3.95 per cent to Rs 784.10), Bharti AirTel (up 3.75 per cent to Rs 598.75) and ACC Ltd (up 3.61 per cent to Rs 1,007.50) were the other top gainers on the Sensex.

Index heavyweight Reliance Industries rose by 2.49 per cent to Rs 1,238.10. All sectoral indices except FMCG (down 0.48 per cent) ended in positive territory.

ONGC topped the losers chart with a loss of 2.04 per cent to Rs 789.10. HLL (down 1.92 per cent to Rs 219.40), Tata Steel (down 1.08 per cent to Rs 435.65) and Infosys (down 0.62 per cent to Rs 2,150.50) were the other losers.

“We think the markets would continue to remain weak for the next few days. Today's movement was more because some players consider a correction to be an opportunity to invest, which reflected in a gain for the indices. However, the concerns over valuations continue,” Alpa Shah, research analyst with Khandwala Securities Ltd, said.

The Sensex, which breached the 14,000 barrier intra-day on December 5, has lost nearly 5.65 per cent (790.69 points) since December 7, when it closed at an all-time high of 13,972.09. The index went below the 13,000 mark on December 8, after the Reserve Bank of India decided to restrict credit flow into the economy.

Vikas Khemani, co-head of institutional equity at Edelweiss Securities, said, “We don't expect the markets to go up in a hurry. It will be range-bound at these levels.” :SugarwareZ-064:

 

[love_gundu22]

Sensex snaps three-day fall, rises 186 points

Sensex snaps three-day fall, rises 186 points

MARKETS BUREAU, AGENCIES
MUMBAI, DEC 13: The Sensex rose 1.43% on Wednesday, snapping a sharp three-day fall as investors looked for bargains in blue chips such as Reliance Communications and Reliance Industries. The main 30-share BSE index, which had tumbled 7% over previous three days, see-sawed in a 393 point range before closing 186.32 points higher at 13,181.34.

Twenty-one of its components ended in positive territory after two days where all 30 stocks had lost ground. The index is now up 40.3% up in 2006, having been up over 49% when it hit a record high of 14,035.30 on December 6.

“It seems like one round of panic selling is over,” said Deepak Jasani, head of retail research at HDFC Securities. “But we think the markets are going to remain volatile with a downward bias for the next few trading sessions,” he said.

The 50-issue Nifty rose 1.3% to 3,765.20, and the mood was positive in the broader market as gainers outnumbered losers 1,632 to 854 on a volume of 202 million shares.

“I can’t say what will happen tomorrow. But it was a much needed correction. A 7% decline is no big deal. Now all eyes will be on the Budget,” said vice chairman & MD, Kotak Mahindra Bank. BSE member Ramesh Damani said, “In fact correction always makes the market healthier.
:tea:

 

[love_gundu22]

Indian shares recover after three-day slump

Indian shares recover after three-day slump

ACC was up 3.61 percent at Rs.1,007.50, and ICICI Bank last traded at Rs.830.30 to gain 3.07 percent. Sensex heavyweights such as Tata Motors and Reliance also made advances of 2.67 percent 2.49 percent respectively.

Mumbai, Dec 13 - Amid high volatility, Indian shares ended higher Wednesday after three successive days of decline as investors sought bargains in blue-chip shares like Reliance Communications, Bharti Airtel and Grasim.

The 30-share sensitive index - of the Bombay Stock Exchange index - ended higher by 186.32 points, or 1.43 percent, at 13,181.34 after oscillating wildly between 13,223.00 points and 12,830.38 points.

The 50-share Nifty of the National Stock Exchange - also finished higher by 48.30 points at 3,725.60 points.

The top gainers included Reliance Communication, up 7.36 percent at Rs.433.15, Grasim Industries, up 4.29 percent at Rs.2,613.85, and public sector financial services major State Bank of India, up 4.09 percent at Rs.1,228.05.

Pharmaceuticals major Dr. Reddy's Laboratories last traded at Rs.784.10 to gain 3.95 percent, while telecom service provider Bharati Airtel traded at Rs.598.75, to gain 3.75 percent.

ACC was up 3.61 percent at Rs.1,007.50, and ICICI Bank last traded at Rs.830.30 to gain 3.07 percent. Sensex heavyweights such as Tata Motors and Reliance also made advances of 2.67 percent 2.49 percent respectively.

Top losers were led by Oil and Natural Gas Corp, followed by Hindustan Levers and Tata Steel - mainly because of a higher bid by a Brazilian steel maker to take over Anglo-Dutch Corus.


:tea: