Banks, Stocks Grow More

An episode of volatility has seen the benchmark key rebounded after paring gains from the highs 3-1/2-week In morning trading. BSE Sensex rose 148.62 points or 0.8%. The size of the market was strong. Data showing the recovery of the purchase by foreign funds and firm Asian stocks boosted sentiments. Index heavyweight Reliance Industries (RIL) has extended the initial benefits. IT and banking stocks rose NRI Demat Account.

Foreign institutional investors (IIE) bought shares worth Rs 819.41 crore Tuesday, June 28, 2011, according to preliminary figures from the exchange.

Note: The market opened firm tracking Asian shares higher. Bout of volatility was witnessed when the benchmark index back to the strength of gains, after-peel 3-1/2-week readings in the morning trade NRI Share Trading Account.

The market may remain volatile in the short term as traders rolling over positions in the derivatives segment in June 2011 Series 2011 Series for July. The quasi-June 2011 months derivative contracts expire Thursday, June 30, 2011.

At 10:20 IST, the BSE Sensex up 148.62 points or 0.8%, to 18,641.07. The Sensex rose 162.27 points to 18,654.72 on the day high in early trading, its highest since June 3, 2011. The index rose 59.74 points to 18,552.19 on the day a bit in early trading.

S & P CNX Nifty rose 38.45 points, or 0.69% at 5,583.75. Nifty has hit its highest 5,591.80 in intraday trading to its highest level since June 3, 2011.

The size of the market, indicating the overall health of the market were strong. On BSE, 1287 shares advanced while 524 shares declined. A total of 93 shares remained unchanged PAN Card for NRI.

Among the Sensex pack of 30 members, 25 shares rose, while the rest of them fell. Bhel, Infrastructure and Sterlite Industries rose Trust 2.36% to between 2.53% NRI Online Trading account.

Index heavyweight Reliance Industries (RIL) rose 0.61%. Ril reported tax payment jumped 38.46% to Rs 900 crore in Q1 June 2011 over Q1 June 2010. Higher than the pre-payment of tax normally indicates a higher profit for the period under review.

RIL stock had seen a sell off after the recent reports of the government watchdog has accused the Ministry of Oil for RIL, allowing it to double the development costs for its KG-D6 gas field. Available hit 52-week low of Rs 829 in intraday trading on June 20, 2011. As per recent reports, a final report by the Comptroller and Auditor of India (CAG) has questioned the decision of the Ministry of Petroleum and its technical arm, Director General of Hydrocarbons (DGH), RIL to increase the development cost of RIL of KG-D6 field.

RIL clarified that he has fully complied with its production sharing agreement, the performance of petroleum operations.

IT stocks were in all areas of renewed buying. Patni Computer Systems, TCS, Infosys and HCL Tech rose between 0.24% and 1.31%.

Wipro rose 0.06%. In stock turned ex-dividend date, June 29, 2011 a dividend of Rs 4 per share for the year ended March 2011.

From banks extended recent gains. The largest sales network in India bank branch of the State Bank of India (SBI) rose 0.79%, with the gain for the fifth consecutive day. Withholding tax of the bank would have increased 29.41% to Rs 1100 crores in the first quarter, in June 2011 in the first district in June 2010.

Bank of Baroda, Bank of India and Punjab National Bank rose between 0.09% to 0.31%.

India’s largest private sector bank by net profit ICICI Bank was 0.47%, the winner of stocks for the sixth straight day. The Bank aims to expand its loan portfolio by 18% -20% this year, its chief financial officer SI Kannan, said in an interview Monday, June 27, 2011.

India, second largest bank in the private sector added a net profit HDFC Bank 0.63%, with the stock gaining the fifth straight day. Bank pre-tax profit increased by 26.98% reported RS 400 crore in Q1 June 2011 over Q1 June 2010.

Dr Reddy Laboratories rose 1.09% after receipt of the company’s American Depositary, or ADR rose 3.65% to 34.67 dollars on the New York Stock Exchange Tuesday, June 28, 2011.

Expectations for the first quarter results in June 2011 will begin construction in the first quarter draws to a close. Housing finance major HDFC starts earnings season on July 8, 2011. IT barometer Infosys Technologies will announce earnings for the first quarter, July 12, 2011.

Hike in transportation costs increase the cost pressures India Inc. Reports Fri, freight rates increased by 8% 9% immediately on all routes across India with the latest increase in diesel prices.

As for reports, investment projects worth Rs 8 lakh crore huge should be completed in the year ending March 2012 (FY 2012). Many of these projects is to overthrow the previous year, the reports added.

Meanwhile, the recent increase in diesel and LPG prices also add to inflationary pressures in the economy. The food price index rose by 9.13% and the index of fuel prices increased by 12.84% at 11 years in June 2011, data released by the government Thursday, June 23, 2011 showed. In the previous week, food and annual inflation of fuel and 8.96% 12.84% respectively. The price index for primary articles rose 12.62% compared to an annual increase of 12.86% a week earlier.

Treasury Secretary Timothy Geithner Tuesday, June 28, 2011, said that economic growth in India continues to hold untapped potential for U.S. companies. Changes to India’s banking and insurance, and production and infrastructure development that will benefit both countries, said Mr. Geithner said at the conclusion of bilateral negotiations between the two countries in Washington.

Geithner said the two sides discussed ways to allow foreign investors to venture into India’s pensions, insurance and banking. He noted that the two sides agreed to resume the technical level discussions on a bilateral investment treaty. Finance Minister Pranab Mukherjee said that India plans to raise $ 1 million in infrastructure funds over the next five years.

Parts of Asia rose Wednesday, June 29, 2011 the Parliament voted greek that investors are hoping to adopt a rigorous program required by international lending institutions. Benchmark indices in Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan increased between 0.32% and 1.45%. China Shanghai Composite fell 0.43%.

The Greek Parliament is conducting a two-day session of Parliament on key austerity measures from today, June 29, 2011. Greece is required to reduce expenditures in order to receive her next round of aid funds.

The U.S. index futures indicated the Dow could fall 20 points at the opening bell Wednesday, June 29, 2011. The U.S. Federal Reserve decided to end its program to buy 600 billion worth of bonds by the end of this month, according to the schedule.


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