Bulls In Control

The key benchmark indices extended gains to reach new highs in the conclusion of intraday trading in the afternoon of opening up European stocks. The resumption of purchases of foreign funds in recent days also supported the gains. Global stocks jump on bargain hunting after recent sharp fall. The BSE Sensex up 239.44 points or 1.42%. The BSE Sensex recovered psychological 17,000 mark. S & P CNX Nifty was above 5100 mark. The market size, which indicates the general health of the market was very strong. All sectoral indices on BSE were in green.

Index heavyweight Reliance Industries (RIL) has continued to rally on Tuesday after the company partners BP Plc, has reportedly said that is sure to increase natural gas production in the eastern offshore KG-D6 block in two years. Capital goods stocks extended recent gains. Metal stocks rose to a bargain hunting after recent losses. Stocks on interest rate cut than bargain hunting after recent decline Realty trigerred concerns about rising interest rates, the demand for residential and commercial properties tooth. Jaiprakash Associates, jumped more than 6%, the report has been discussions to sell up to 26% stake in the cement Cemex of Mexico and South America, the Votorantim Group.

At 13:20 IST on BSE Sensex was up 239.44 points or 1.42% to 17,102.55. The index was 246.52 points at day’s high at 17,109.33 trade in the afternoon. The index was up 59.50 points at 16,922.31 few days in early trading.

S & P CNX Nifty rose 74.15 points, or 1.46% at 5,138.45, after the wheel between 5,142.25 5,076.30 during the day and up to now.

The market size, which indicates the general health of the market was very strong. On BSE, 1844 shares advanced, 785 shares declined. A total of 95 stocks remained unchanged.

Among the Sensex stake 30, 24 gained, while the rest refused. Tata Power Company, HDFC Bank and SBI rose between 2.45% to 3.91%. ITC, Hero MotoCorp Sun Pharmaceutical Industries and fell 0.06% to 0.64%.

Index heavyweight Reliance Industries (RIL) advanced 1.85% at the 836th RS extensive stock rally 4.05% on Tuesday after triggered venture partners BP Plc said it is confident would increase production of natural gas from its KG-D6 Block offshore East in two years. BP last month completed a $ 7.2 billion acquisition of a 30% interest in 21 blocks of oil and gas RIL operates in India.

BP will pay a total consideration of $ 7.2 billion RIL, subject to adjustments termination of interest to be acquired during the 21 production-sharing contracts, both companies said a joint statement. Additional performance payments up to $ 1.8 billion could be paid based on the exploration success leading to the development of commercial discoveries, the companies said.

Another index heavyweight Infosys fell 0.33% to Rs 2295.70, off day high of Rs 2313.80.

Manufacturer of the largest dam in India by sales Jaiprakash Associates rose 6.42% to Rs 70.50 on reports the company is considering to rope in a strategic partner for its cement. He was the winner of Top Sensex pack. According to reports, Jaiprakash Associates open to dilute to 26% in the cement business. The company has roped in a clutch of investment banks to advise on any strategic issue selling. Preliminary discussions have already begun with the South American conglomerates such as Cemex and Votorantim Group, which has a global presence, but also seek to play a greater India. A deal that could still take some time to bear fruit, reports said.

Metal stocks rose on bargain hunting after recent losses. Sterlite Industries, Welspun Corp, Bhushan Steel, Sail, Hindalco Industries, Hindustan Zinc, Jindal Steel & Power, Tata Steel and JSW Steel rose 0.58% to between 2.58%.

Stocks on interest rate cut than bargain hunting after recent decline Realty trigerred concerns about rising interest rates, the demand for residential and commercial properties tooth. Purchases of residential and commercial properties, largely driven by funding. DLF, HDIL, India Bulls Real Estate and Unitech gained 0.89% and from 3.32%.

Capital goods stocks extended recent gains. BHEL, Larsen & Toubro, Praj Industries, ABB, Siemens, Thermax and Punj Lloyd rose 0.62% to between 2.66%.

The market shrugged off a bomb outside the High Court of New Delhi. A powerful bomb placed in the portfolio outside the High Court in New Delhi killed at least nine people and wounded 45 on Wednesday, the Interior Minister, said RK Singh, prompting the government to set the capital on high alert.

Foreign institutional investors (IIE) bought shares worth Rs 431.48 million rupees, Tuesday, September 6, 2011, according to preliminary data of the award. Domestic institutional investors (DIIS) has sold shares worth Rs 415.17 crore on that day. FIIs bought shares worth Rs 1723.09 crore first trading sessions of September 3, 2011.

Bill much-anticipated land acquisition, which seeks to establish standards for higher compensation for the owners, was approved by the Council of Ministers of the Union Monday, September 5, 2011. Must be presented to Parliament today, September 7, 2011. The project includes land acquisition and rehabilitation and resettlement, clearly defined public purposes, a provision for a retroactive effect, and draws instead of compensation.

Moody Investors Service affirmed its Baa3 rating for India’s foreign currency debt to Ba1 government and its debt rating in local currency in an annual credit analysis published Monday, September 5, 2011. The firm’s ratings a positive outlook for India’s rupee-denominated bonds, says he will consider an overall rating of Baa3 for all obligations, if India improves its financial position and its willingness to strengthen the internal market. The outlook for the debt in foreign currencies are stable.

Report optimistic about India’s ability to overcome the global economic crisis. Although not immune to the slowdown in international, domestic demand and prepare for the diversity of economic slowdown in the world are exposed to the fields, the report said. He noted that India’s foreign currency reserves than four times the foreign debt.

A debt to GDP ratio of 71% is a concern that the interest on this debt eats 25% of revenues from India every year. But Moody expects continued growth of GDP and further fiscal consolidation efforts will continue to reduce the public debt / GDP, the report said.

Services sector in India grew at its slowest pace in over two years in August 2011, nipped in the expansion of the weakness in new business areas, such as a faltering global economy and tight monetary conditions taken into consideration, a survey showed Monday, September 5, 2011. HSBC Markit activity index, based on a survey of 400 companies fell to 53.8 in August against 58.2 in July, the largest decline in the index of a month since January 2009. It was also the lowest growth since June 2009, but the index was above the 50 threshold separating growth from contraction for 28 consecutive months.

The new business sub-index fell to its lowest level in three months to 54.9 in August from 59.3 in July, to mitigate the global economic situation knocked orders. Expectations of new activities also reduced in the month of August. The survey also showed a decline in employment in the service sector for the second consecutive month business growth has slowed, while production costs and producer prices have continued to march forward.

Manufacturing activity in India in August 2011 slowed to a minimum of 29 months as exports took a beating amid the uncertainties that persist in the global economic environment, according to a poll Friday, September 2, 2011. The total seasonally adjusted purchasing managers HSBC, prepared by Markit, fell to 52.6 in August from 53.6 in July. The rate of flow of new orders fell in August to the slowest in 29 months, export orders fell at their fastest pace since the series began, HSBC said.

Book production fell for the first time since March 2010, when the pressure of operating capacity decreased. As the intensification of inflationary pressures as both input and output prices rose.

Particular food inflation to 10.05% in the week ended August 20, 2011, the highest in almost six months to 9.8% the previous week. The data show a long battle against inflation could lead the Reserve Bank of India to increase its interest rate for the 12th time since March 2010 when its next meeting to discuss monetary policy September 16, 2011.

Exports rose 81.79% to $ 29.3 billion, while imports rose 51.5% to 40.4 billion crowns in July 2011 during July 2010, leaving a trade deficit of 11 billion dollars, data showed last week.

European shares opened sharply higher Wednesday in an attempt to rebound after the recent waves of selling. The key benchmark indices in France, Germany and the United Kingdom increased from 1.79% to 2.06%.

The European Central Bank (ECB) should maintain its key rate unchanged at 1.5% at its monthly meeting on interest rate policy, Thursday, September 8, 2011. The same day the Bank of England (BOE) Monetary Policy Committee is also expected to keep its key interest rate benchmark interest 0.5%, 31 consecutive months with such rapidity.

High-cut Asian markets on Wednesday as the yen weakened and fell at cheaper valuations since 2008. Benchmark indices in Taiwan, Japan, South Korea, China, Hong Kong, Singapore and Indonesia increased between 1.21% and 3.78%.

U.S. trade in index futures indicated that the Dow could get 72 points at the opening bell on Wednesday, September 7, 2011.

U.S. markets fell Tuesday on fears in Europe is still failing to tackle its debt crisis. Dow Jones Industrial Average fell 100.96 points, or 0.90%, to 11,139.30. S & P 500 slipped 8.73 points, or 0.74%, to 1165.24. Nasdaq fell 6.50 points, or 0.26% at 2473.83.

President Barack Obama has a speech Thursday, September 8, 2011, to propose measures to boost employment in the light of the crisis in U.S. unemployment.


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