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Thursday, February 17, 2011

Nifty gains for 5th day...Sensex ends above 18500

The pre-budget rally continues on Dalal Street, with the Indian indices extending its winning streak to a fifth straight trading session after Government data showed a steep decline in food inflation. The NSE Nifty ended just below the 5550 level while the BSE Sensex closed above 18,500 level.

Today’s strong rally was led by Banking, Capital Goods and Auto stocks. Only the Realty index on the BSE witnessed selling pressure. The BSE Mid-Cap and the Small-Cap index gained 1% each.

Easing food inflation triggers markets upmove

The key indices gained momentum, with the Nifty closing above the 5500 mark and the Sensex above 18500 levels as a decline in food inflation triggered upmove.

Major headlines

Food inflation eases to 11.05% versus 13.07%

DQE soars on signing French licensing deal

Pipavav Shipyard inks MoU with Northrop

Stocks gain modestly in Asia

Upbeat overnight cues from US markets support sentiments; Middle East worries remain in place

Asian markets edged higher though the worries in Middle East post the breakout of Egypt presidency kept the gains under check for the major indices in the region. In overnight moves, the US stocks added decent gains on upbeat economic cues and a bounce in the housing starts. The minutes of the last US Fed meet stated that the economy stood on firmer ground in January in light of a pickup in the strength of a series of economic reports. The Fed raised its 2011 GDP growth expectations to a range of 3.4 percent to 3.9 percent. The US Housing starts rose sharply by much more than expected in the month of January. This kept the buyers in an active mode and markets shrugged off worrying developments in the Middle East as well as a drop in the US industrial production numbers. The Dow added 61.53 points or 0.5 percent to close at 12,288.17 points.

Sensex, Nifty attain 3-week high in pre-budget rally

The key benchmark indices rose for the fifth consecutive trading session, registering their longest stretch of gains this calender year, after the latest data showed easing of food inflation early this month. Banking and some auto stocks rose. The barometer index BSE Sensex and the 50-unit S&P CNX Nifty attained 3-week closing highs. Barring the realty index, all the other sectoral indices on BSE were in green. The BSE Capital Goods index gained the most. Index heavyweight Reliance Industries (RIL) extended initial gains. The market breadth was strong.

Daily Market Research - Feb 17 2011

Daily Market Research - Feb 17 2011

Daily News Roundup - Feb 17 2011

RIL plans to invest up to US$30bn in next 5 years in various businesses including energy and telecom. (ET)

RIL gets new partner for its marcellus shale gas in US. (BS)

Tata Power and Tata Motors plan perpetual bonds to raise US$1.5bn. (ET)

Sensex, Nifty finish flat…Broader market firm

The Indian stock market ended almost unchanged at the end of a fairly listless session as investors took a breather after a three-day rally. Just when one thought that the bulls would continue to dominate the scene, comes the break in the winning sequence. Markets were unable to hold on to the early gains and broadly traded in a very tight range through the day. The key stock indices turned a little choppy, with the NSE Nifty swing nearly 60 points and the BSE Sensex oscillating close to 150 points between their day’s lows and highs.

Quiet consolidation before Budget

Belief like any other moving body follows the path of least resistance. - Samuel Butler.

The Indian market seems to have hit the consolidation path post the big pull-back we have had recently. We are in a trading range for a few days leading up to the Budget. Decisive moves are expected next week due to the F&O expiry and the Union Budget. Also, the latest GDP figures will be out next week. We expect another soft start and perhaps another day of intraday churning within a tight trading band. Watch out for the weekly inflation data around noon.

US stocks end strongly higher

Earning and economic reports coupled with FOMC minutes push stocks higher

US stocks finished strongly higher on Wednesday, 16 February 2011. It was mainly better than expected earning and economic reports that helped stocks bounce back after incurring losses for two straight days. The dollar remained strong initially but pared its gains in the later part. Latest minutes from the Federal Open Market Committee meet also boosted stocks.

Precious metals oscillate for entire day

Register marginal changes at the end

Precious metals fluctuated between red and green on Wednesday, 16 February 2011 at Comex. Prices wavered between small gains and losses throughout the session as tensions in the Middle East, as well as worries about inflation and the European sovereign debt crisis, supported buying, but the metal had felt the pinch of a stronger dollar.

Crude climbs up

Prices end higher as crude inventories rise less than expected

Crude prices ended higher on Wednesday, 16 February 2011 at Nymex. Prices rose as EIA reported less than expected rise in crude inventories for last week. Prices also rose as Middle East tensions continued and dollar pared initial gains.

Market may open slightly lower; food inflation data eyed

Profit taking may pull the market lower after a recent rebound. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 13 points at the opening bell. The market has risen in last four consecutive days. On the macro front, the government will unveil data on some wholesale price indices for the year through 5 February 2011 viz. the food price index, the primary articles index and the fuel price index at about 12:00 IST.

Coal India, Tata Steel, Jubilant Lifesciences

Coal India, Tata Steel, Jubilant Lifesciences

SGX Nifty Live Update - Feb 17 2011

5,478.00 -16.00