Business Daily from THE HINDU group of publications
Saturday, Jan 13, 2007
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Business Daily from THE HINDU group of publications Saturday, Jan 13, 2007 ePaper |
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Stock Markets Markets - Stock Markets Our Bureau
Market trend Fall in crude price sent positive triggers for oil stocks Sugar stocks added sweetness to the rally as export ban was lifted
Mumbai , Jan. 12 The stock markets soared on Friday, with the country's benchmark index the BSE Sensex closing at an all-time high of 14,056.53. This was after reaching an all-time intra-day high of 14,071. The Sensex gained 425.82 points or 3.12 per cent over the day. It has added 693 points in the past two consecutive trading sessions. The broader index NSE S&P CNX Nifty closed at 4,052.45, up 2.8 per cent. The Cabinet announcement on Thursday allowing the central bank to bring the Statutory Liquidity Ratio (SLR) to below 25 per cent triggered the rise in bank stocks. BSE Bankex gained 6.79 per cent at 7,383.25 points, while Bank Nifty gained 7.12 per cent at 6,157.95 points. "The ease in SLR will provide higher liquidity to banks for lending, thereby improving their margins and profitability. Bank stocks today have reflected this as they can now give more funds for lending," said Dr K.D. Mehru, VP-Equity Research, Khandwala Securities. ICICI Bank was the top gainer, up 8.49 per cent at Rs 970.10, followed by HDFC Bank, up 6.39 per cent at Rs 1,063.25 and State Bank of India, up 6.39 per cent at Rs 1,223.45. There was a lot of short covering in the futures market as most FIIs squared up their positions at higher levels, said dealers. Stock prices are reflecting the market's anticipation of good third quarter corporate results. "Midcaps did not lose even in the past sessions when the Sensex fell, indicating the strength of the market. They are expected to post strong numbers this quarter," said Mr Vijay Kedia, Managing Director, Kedia Securities. "The Infosys and HDFC Bank results yesterday showed a significant improvement in their margins indicating that companies are not under any pressure. This has helped today's rally," said Mr Lalit Thakkar, Director - Research, Angel Broking. "The drop in crude oil prices to less than $54 per barrel has sent positive triggers for oil stocks," said Mr Bhavesh Vakaharia, Head - Retail Dealing, Parag Parikh Financial Advisory Services Ltd. All Asian bourses firmed up on Friday following the drop in oil prices. Sugar stocks added sweetness to the rally as a ban on exports was lifted. Companies such as Dhampur Sugar Mills and Balrampur Chini posted gains. FIIs were, however, net sellers in the markets for Rs 24.66 crore as per provisional figures on the NSE. In January, mutual funds too have been net sellers in equity at Rs 707.29 crore. All sectoral indices ended in the green. BSE IT, Teck and Oil and Gas ended 2.24 per cent, 2.41 per cent and 2.77 per cent higher, respectively. Not a single Sensex stock posted a loss. The market breadth was positive with stocks of 1,635 companies gaining, while that of 1,048 companies declining. Volumes were high, said dealers with the overall turnover on the BSE being Rs 4,608.39 crore. Dealers said they did not expect a reversal of the market trend going ahead, since corporate results are expected to be good.
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