MUMBAI: Bulls extended their winning streak on Wednesday, taking the Indian equity benchmarks to 52-week highs. Traders defied cautious calls from experts that markets are over-heated and a correction is imminent. The rally was led by power, capital goods and banks while broader markets saw some profit booking.

Prime Minister Manmohan Singh’s remarks that the Indian economy could grow at 9 per cent saw investors turning bullish for the second day. Reports of companies like HDFC and REC raising huge sums for expansion and surprisingly positive numbers from Satyam Computer boosted investor sentiment. They also took cues from global markets which rallied on hopes of economic recovery.

National Stock Exchange’s Nifty closed at 4655.25, up 104.30 points or 2.29 per cent. The index earlier in the session hit a 52-week high of 4688.95 while the low was 4551.70—also the open.

Bombay Stock Exchange’s Sensex ended at 15,466.81, up 339.81 points or 2.25 per cent. The index almost touched the 52-week high of 15589.62 but retraced after touching an intra-day high of 15580.81. The low for the day was 15168.18, at which it had opened

“Lot of churning was seen across the board as operators chose to book profits in broader (mid and small cap) markets while certain certain frontliners moved up. We expect volatility in coming days with positive bias. There is a lot of fund money waiting to enter the market. Once Nifty crosses 4700, those left out will be forced to enter the market,” said Dharmesh Desai, vice-president, Networth Stock Broking.

Market breadth on BSE showed 1,553 declines against 1,218 advances. The BSE Midcap Index was up 1.59 per cent and BSE Smallcap Index moved up 0.34 per cent. BSE Power Index gained 3.62 per cent, BSE Capital Goods Index was up 3.46 per cent and BSE Bankex moved up 2.49 per cent. BSE Realty Index was down 1.14 per cent.

Biggest Sensex gainers were Tata Power (6.43%), Reliance Infrastructure (5.99%), HDFC Bank (5.56%), Ranbaxy Laboratories (5.44%), ACC (5.4%) and Reliance Communications (5.3%).

Tata Motors (-1.95%), DLF (-1.71%), Sun Pharmaceuticals (-0.83%), State Bank of India (-0.37%) and HDFC (-0.23%) were the losers.

Shares of Satyam Computers hit 10 per cent upper circuit after the company surpised by reporting over Rs 2000 crore in revenues and Rs 181 crore net profit for the December 2008 quarter. Tech Mahindra, the new owner of Satyam Computers, also closed 5.22 per cent higher and Larsen & Toubro which holds stake in the beleaguered company was up 3.56 per cent.

Shares of HDFC were in demand after the mortgage lender announced plans to raise up to Rs 4,000 crore through a debenture-cum-warrant issue to institutional investors. The company said it would issue secured redeemable non-convertible debentures on qualified institutional placement basis, along with warrants convertible into equity shares at a future date, with both being listed separately on stock exchanges. The scrip ended flat at Rs 2349.65.

Shares of Rural Electrification Corporation were up 2.30 per cent after the company announced plans to sell 20 per cent equity stake to raise around Rs 3,000 crore for funding power projects. The scrip closed up 1.27 per cent.

European markets were witnessing an upmove and the Wall Street is set for a strong opening. At 5 pm IST, Dow Jones stock futures were up 1.18 per cent, S&P 500 futures gained 1.37 per cent and Nasdaq 100 futures moved 0.92 per cent higher.

source: Economictimes

Tags: market outlook, market review, nifty 200 dma, nifty above 52 wk high, stock market india

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