BSE Sensex to open cautiously, outlook hazy

Enlarge Photo People watch a large screen displaying India's benchmark share index on the facade of the...

Thu, Jul 9 09:44 AM

NEW DELHI (Reuters) The BSE Sensex is expected to start cautiously on Thursday after dropping to their lowest close in more than a month in the previous session, and uncertainties about a global economic recovery will keep investors wary.

There are concerns robust foreign fund inflows, which had lifted the main stock index by nearly half in the June quarter, could slow down sharply and even reverse if there was more pain for the world economy.

Shares in DLF Ltd will be in focus after the Economic Times cited two unnamed company executives as saying the top listed developer had sold its stake in an equal joint venture with Ackruti City to a U.S.-based real estate fund for more than 2 billion rupees ($41 million).

V.K. Sharma, head of research at Anagram Capital, said any pullback would be shortlived.

"We still believe the levels before elections will be revisited," he said, referring to around 12,000 points for the BSE index before the ruling coalition won re-election in

mid-May and sparked a big surge.

The benchmark, which dropped 2.8 percent on Wednesday to 13,769.15, has fallen 7.7 percent this week after the budget disappointed investors on Monday.

Still, it is up 42.7 percent this year after rallying for 16 of the last 17 weeks.

Foreign funds, a major driver for stocks, have poured in $5.8 billion so far in 2009, but there is little clarity on the outlook.

Asian markets were mostly weak with Japan's Nikkei average falling 0.5 percent, hurt by a strong yen, while the MSCI index of Asia-Pacific shares excluding Japan was

little changed.

Nifty futures traded in Singapore were up 0.3 percent at 0345 GMT.

Wholesale price index due around 0630 GMT will be watched. The WPI is forecast to have fallen 1.47 percent in the 12 months to June 27, a fourth straight fall, according to a Reuters poll of 10 analysts.

STOCKS TO WATCH

* IOL Netcom Ltd after its board approved raising up to 2.5 billion rupees.

* Amtek group firms Amtek Auto Ltd, Amtek India and Ahmednagar Forgings after their respective boards approved raising funds by issuing warrants to founders.

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Sensex claws back, stabilises

A day after plunging 869 points on Budget shock, the benchmark index of the Bombay Stock Exchange (^BSESN : 13760.74 -409.71), Sensex, on Tuesday gained 127 points in hindsight and low selling pressure. The projected fiscal deficit of 6.8 per cent and silence on disinvestment plans in Finance Minister Pranab Mukherjee's budget speech caused the market to tumble intra-day. However, it recovered by the end of the day's trade as sentiments stabilise and sellers held on to stocks, and the Sensex gained 0.9 per cent to end at 14,170. The national Stock Exchange's Nifty (^NSEI : 4078.9 -123.25) also closed 0.8 per cent up, or 36 points, at 4,202.Auto, FMCG and capital goods gained most while PSU and oil and gas were the major losers. Shares of Reliance Natural Resources Ltd and Suzlon witnessed high number of trades.

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BSE Sensex volatile ahead of economic data

The BSE Sensex see-sawed in early trade on Thursday as investors awaited key economic data later in the day that could outline a roadmap for economic policy measures.

State-run oil firms led by Oil and Natural Gas Corp were key gainers after India unexpectedly raised gasoline and diesel prices, while Reliance Industries was weak over uncertainty on a gas supply deal with a former group firm.

The index opened up higher but quickly slipped to negative territory.

"Caution is visible in the market trend. There has already been a strong run-up, and that is weighing. Nobody is willing to hold onto large positions," said D.D. Sharma, senior vice president at Anand Rathi Securities.

"The real direction for the market will only come after the Budget," he said.

The annual economic survey is expected to be presented in Parliament around noon (0630 GMT) and could be an indicator to the policy direction to be outlined in the budget next week.

Investors expect the government to unveil pro-reform measures in the budget such as a auction of third-generation wireless spectrum and stake sales in state firms to raise cash.

Oil firms led the gains on hope of easing subsidy burden incurred from selling products at discounted rates. On Wednesday, the government raised petrol and diesel prices by as much as 10 percent, the first increase this year.

ONGC shares were up 4.2 percent at 1,096.85 rupees, oil marketing firm Indian Oil Corp rose 3.1 percent to 558 rupees, Hindustan Petroleum Corp gained 2 percent to 317.50 rupees, while Bharat Petroleum Corp added 1.2 percent to 459 rupees.

Top aluminium producer Hindalco was up 1 percent at 84.25 rupees after lenders agreed to relax terms of a $982 million bank loan. The stock had slumped on Wednesday after it reported profits fell sharply in 2008/09.

Among key losers, Reliance Industries was down 0.4 percent to 2,052 rupees after it said it would appeal to the Supreme Court against a ruling to enter into a gas supply deal with former group firm Reliance Natural Resources Ltd on unfavourable terms.

Shares of auto firms were also weak on worries over higher fuel prices hitting demand for vehicles. Auto stocks had rallied on Wednesday as data showed most brands posted strong monthly sales growth.

Top car maker Maruti Suzuki was down 1.4 percent at 1,055.55 rupees, largest vehicles maker Tata Motors slipped 0.9 percent to 296.50 rupees, while two-wheeler maker Hero Honda fell 0.8 percent to 1,387 rupees.

Weekly inflation data, also expected around noon, is also in focus. A Reuters poll of analysts forecast the wholesale price index to have fallen 1.35 percent in the 12 months to June 20

In the broader market, 1,244 gainers outpaced 697 losers on average volume of 93 million shares.

The 50-share NSE Index was up 0.1 percent at 4,295 points.

TOP 3 STOCKS BY VOLUME

* Jagran Prakashan on 5.7 million shares

* NIIT on 5 million shares

* Satyam Computer on 4.1 million shares

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BSE Sensex rises 1 pct; Reliance, autos gain

The BSE Sensex (^BSESN) rose 1 percent on Wednesday after data reinforced signs of an economic recovery, but trading was choppy as investors took profits ahead of an updated budget next week.

Gains were led by Reliance Industries (RELIANCE.NS) after the energy giant said it could not sign a deal to sell gas at below state-set prices to a former group firm without the government's approval.

Auto shares climbed after top car maker Maruti Suzuki, leading utility vehicles producer Mahindra & Mahindra and motorcycle maker Hero Honda Motors all reported double-digit sales growth in June.

Hindalco Industries (HINDALC0.NS) fell 3.5 percent to 83.40 rupees after the top aluminium producer posted a 78 percent slump in 2008/09 consolidated profit.

Manufacturing activity expanded for a third straight month in June, albeit at a slightly slower pace, reflecting strong local demand, data showed on Wednesday.

Still, investors only took trading positions as they awaited policy direction from the budget on Monday, traders said.

"There has already been a good run-up in the market, and people are going for safe positions so they can deal with any unexpected negativity," said Tejas Doshi, head of research at Sushil Finance.

The 30-share BSE index rose 1.05 percent, or 151.63 points, to 14,645.47 points, with 25 components closing higher. It slipped nearly 1 percent in the afternoon before pulling back.

The benchmark had rallied by almost half during April-June in their best quarterly gain in 17 years, but investors are wary their expectations on the budget may be too high.

"The volumes are strong, but people are taking more daily positions. Future direction should only be known after the budget measures," said K.K. Mital, chief executive for portfolio management services at Globe Capital Market.

Finance Minister Pranab Mukherjee is likely to announce plans to sell shares in some state run firms to help fund rural and social programmes, but the cash-strapped government could expand the budget deficit and its market borrowing.

Reliance Industries, which has the heaviest weight in the main index, rose 1.7 percent to 2,057.35 rupees after its statement late on Tuesday on the gas deal eased concerns its profits could be affected.

Financial stocks rose in anticipation of budget moves to help attract more investments in the sector.

Top lender State Bank of India (SBIN.NS) firmed 2.2 percent to 1,779.80 rupees, ICICI Bank (ICICIBANK.NS) gained 1 percent to 729.25 rupees and HDFC Bank added 0.7 percent to 1,502 rupees.

Mahindra & Mahindra rallied 3.2 percent to 714.35 rupees after its June sales rose 19 percent, while Maruti gained 0.4 percent to 1,070.15 rupees as its sales climbed 23 percent.

Top vehicles maker Tata Motors (TATAMOTORS.BO), expected to report monthly numbers later Wednesday, was up 2.8 percent at 299.30 rupees.

Consumer goods maker Hindustan Unilever closed up 2.1 percent at 272.70 rupees, after hitting a 52-week high of 275.20 as investors bet strong local demand would boost revenues.

In the broader market, losers outpaced gainers in the ratio of 1.06:1, on above-average volume of 373.5 million shares.

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BSE Sensex seen up, data eyed ahead of budget

The BSE Sensex (^BSESN) is seen higher on Thursday as investors focus on economic data that could be an indicator for policies included in the budget next week.

Shares of state-run oil firms will be in focus after the government unexpectedly raised gasoline and diesel prices by as much as 10 percent late on Wednesday, a move that will ease the subsidy burden on these firms.

"Now is the time many investors will look to get in the market. The major reaction should be from the Economic Survey announcements," said Vinod Bansal, director at ficuswealth.com.

He expects the market to rise up to 2 percent on Thursday.

The annual economic survey, ahead of the Budget, is expected to be presented in Parliament around noon (0630 GMT), while weekly inflation data is also expected around the same time.

Investors expect reforms in the budget such as a 3G wireless spectrum auction and stake sales in state firms to raise cash.

On Wednesday, the 30-share BSE index rose 1.05 percent to 14,645.47 points after manufacturing data reinforced signs of an economic recovery.

Asian stock markets were largely positive ahead of the latest U.S. payrolls reports. The MSCI index of Asia-Pacific shares excluding Japan was 0.6 percent higher, while Japan's Nikkei was up 0.04 percent.

Nifty (^NSEI) stock futures trading in Singapore were up 0.67 percent, indicating a strong opening in India.

News Source - BSE Sensex seen up, data eyed ahead of budget

BSE Sensex opens higher ahead of economic data

MUMBAI (Reuters) - The BSE Sensex (^BSESN) opened 0.3 percent higher on Thursday ahead of the annual Economic Survey that could be an indicator for policies included in the budget next week.

By 9.57 a.m. (0427 GMT), the 30-share BSE Index was up 0.07 percent at 14,655.17 points, with 15 stocks gaining.

The 50-share NSE (^NSEI) index was up 0.14 percent at 4,347.05 points.

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India Shares End Slightly Higher; Reliance Industries Leads

MUMBAI (Dow Jones)--Buying in metals, coupled with a near 3% rise in the nation's most valued company, Reliance Industries, offset selling in technology and select blue chips as Indian shares ended slightly higher Monday.

The Bombay Stock Exchange's benchmark Sensitive Index, or Sensex, added 0.1%, or 21.10 points, to close at 14,785.74 after trading between 14,685.45 and 14,955.55.

Dow Jones technical analysis tips the 30-stock Sensex, which rose 1.7% last week, to trade in a 14,200-15,700 range this week.

On the National Stock Exchange, the 50-stock S&P CNX Nifty index rose 0.4%, or 15.45 points, to 4,390.95.

"After the Sensex's recent 7.4% fall from the peak on 10 June 2009, we believe that the Indian market is now fairly valued on an overall basis," Nomura analysts Prabhat Awasthi, Nipun Prem and Sanjay Kadam wrote in a note.

"An improvement in the macro outlook, a possible roadmap to fiscal consolidation and an extremely accommodating liquidity environment mean that risk to the downside would be limited," they said, setting a 12-month target of 16,400 for the Sensex.

Total traded volume on the Bombay Stock Exchange was INR60.54 billion, compared with Friday's INR55.13 billion. Gainers outnumbered decliners 1,686 to 964, while 73 stocks were unchanged.

Investors hunted for bargains in metals after their underperformance last week. Sterlite Industries surged 5.7%, the most on the Sensex, to INR646.70, Tata Steel jumped 2.4% to INR397.15, while Hindalco also ended up 1.3% to INR87.80.

Heavyweight Reliance Industries, which has a 15.2% weight on the Sensex, rose 2.8% to end at INR2,084.95, after underperforming with a 0.5% gain last week.

DLF, up 3.2% to INR338 and Oil & Natural Gas Corp, up 2.6% at INR1,068.05, were among the other Sensex gainers.

However, Tata Motors ended as the biggest percentage loser on the Sensex, plummeting 7.8% to INR313.75 as analysts raised concerns over the company's financial health after it late Friday reported a consolidated net loss of INR25.05 billion in the fiscal year ended March 31.

Sun Pharmaceutical Industries lost 3.5% to end at INR1,100.35, adding to its 12.2% loss Friday.

The company Saturday withdrew its sales guidance for the current fiscal year, following the U.S. Food and Drug Administration's seizure of drugs made by its U.S. unit, Caraco Pharmaceutical Laboratories, last week.

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Indian Market Firm In Early Trade

Thursday, the Indian market is trading firm on the last day of the June F&O series settlement, shrugging off concerns about a below normal monsoon for the first time in four years.

Helped by favorable global cues, the BSE Sensex opened higher at 14,476 and rose to a high of 14,578 in early trading. Since then, the index has pared some of its gains and is now trading at 14,507, up 98 points or 0.68%, while the S&P CNX Nifty is trading at 4,305, up a modest 0.27%.

On the BSE, the small-cap and the mid-cap indexes are trading up over 1% each and the market breadth is positive, with 1245 advancers compared to 379 stocks that are declining.

Among the top gainers, Jaiprakash Associates is rising 3.05%, DLF, ICICI Bank, Sterlite, TCS and RCOM are up over 2% each, Grasim and Hindalco are up around 1.80% each and Bharti Airtel is up 1.40%. Tata Power, HDFC, Larsen & Toubro, Ranbaxy, HDFC Bank and Infosys are the other prominent gainers.

On the other hand, Tata Steel, ONGC, NTPC, Hindustan Unilever, Mahindra & Mahindra, Tata Motors, Maruti Suzuki and SBI are trading in the red. Sector-wise, realty, IT and capital good stocks are leading the gainers, while defensive FMCG and oil/gas stocks are trading modestly lower.

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