Market may extend Thursday's gains

The key benchmark indices may extend Thursday's (30 July 2009) gains tracking firm global cues. Strong Q1 June 2009 earnings of India Inc announced so far will support market.

Strong Q1 June 2009 earnings from State Bank of India (SBI) and Mahindra & Mahindra (M&M) and firm global stocks helped the key benchmark indices snap a three day losing streak on Thursday, 30 July 2009. The BSE 30-share Sensex rose 214.50 points or 1.41% to 15,387.96, its highest closing since 11 June 2009 on Thursday. Volatility was high as traders rolled over positions from July 2009 contracts to August 2009 contracts in the futures & options segment ahead of the expiry of July 2009 contracts on 30 July 2009.

As per the provisional figures on BSE, foreign funds bought shares worth Rs 366.81 crore and domestic funds sold shares worth Rs 286.67 crore on 30 July 2009.

The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 1438 companies rose 23% to Rs 68,806 crore on 5.3% fall in sales to Rs 645438 crore in Q1 June 2009 over Q1 June 2008. Reliance Communications, Tata Power Company, Aban Offshore, ABB, Adlabs Films, Dish TV, Divi's Laboratories, Orchid Chemicals, Anant Raj Industries, Sterlite Biotech, Federal Bank, Suzlon Energy, Gammon India, Reliance Capital, MTNL among others will announce their quarter ended June 2009 result today.

A weak monsoon remains a cause of concern. India's monsoon rains were 18% below normal in the week to 29 July 2009, having been above normal in the preceding two weeks. Total rainfall since the beginning of June was 19% below average, the India Meteorological Department said on Thursday. But water levels in India's 81 main reservoirs rose to 35 percent of capacity in the week to July 30, up from 23 percent a week earlier and 31 percent a year ago, government data showed.More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Asian stocks climbed today as better-than- expected earnings and a rally in commodities lifted confidence the global economy is headed toward recovery. The key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.43% to 1.77%.

The US markets rallied on Thursday, 30 July 2009 logging the highest close since November, despite a late-afternoon pullback. It was the highest close for the Dow and S&P since November 2008, and for the Nasdaq, since October 2008.

At closing bell, the Dow Jones rose 83.74 points to close at 9154.46. The S&P jumped 1.2% to close near the 1,000 mark and the Nasdaq added 0.84% to finish under 2,000.In economic news, the number of US workers staying on jobless rolls fell to the lowest level in three months government data showed, while the four week moving average for new claims dropped by 8250to 5,59000 lowest level since late January.