Sensex Scales 6-1/2-week High

The benchmark indices rose fresh intra-day trade data this morning, the barometer index BSE as Sensex hit a peak of over 6-1/2 weeks. 50-unit, S & P CNX Nifty hit its highest for more than 3-1/2 weeks. Data show that the repurchase of foreign funds and companies in Asian shares boosted sentiments. Sensex rose 168.35 points, or 0.91%. Extension of the market was strong. Index heavyweight Reliance Industries (RIL) has extended early gains. Realty, auto shops, sugar and shoes have been.

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. Fresh Market has increased the intra-day high-morning trade.

The market may remain volatile in the near future, as traders rollover positions in derivatives segment in June 2011 a series of July 2011 the series. Almost a month June 2011 derivatives contracts expire on Thursday, June 30, 2011.

At 11.20 IST, the BSE Sensex was up 168.35 points, or 0.91% at 18,660.79. Sensex jumped 180.35 points to 18,672.70 at mid-day the highest morning trade, the highest level since May 13, 2011. The index rose 59.74 points to 18,552.19 in early trading day low.

S & P CNX Nifty rose 49.95 points or 0.9% to 5595.25. The Nifty touched the level of 5,598.50 in intraday trading, its highest level since June 3, 2011.

The market size, which indicates the general health of the market was very strong. On BSE, 1635 shares advanced while 685 shares declined. A total of 109 shares remained unchanged.

Of the 30 member Sensex pack, 27 stocks rose rest fell. Bhel, TCS and Sterlite Industries rose by between 1.7% and 2.7%.

Index heavyweight Reliance Industries (RIL) rose 0.68%. 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.

The stock EFI has been a sell-off recently after reports of a government watchdog has accused the Ministry of Oil to promote RIL allowing you to double the cost of developing the gas field in KG-D6. The stock hit a 52-week low of Rs 829 in intra-day, June 20, 2011. According to recent reports, a draft report of the Comptroller and Auditor General of India (CAG) has challenged the decision of the Ministry of Petroleum and its technical arm, the Director General of Hydrocarbons (DGH) for the EFI raise the cost of developing RIL KG-D6 field.

RIL said it has fully complied with the requirements of its production sharing contract at any time in the conduct of petroleum operations.

Reliance Infrastructure surged 3.17% and was the winner of Top Sensex pack. According to reports, Ali Haji bags Worli sea link project in Mumbai Sea Link of its subsidiary Reliance One (RSLOP) hit a roadblock. The state government of Maharashtra and the Maharashtra State Road Development Corporation (MSRDC) has yet to confirm the availability of funding for site servicing of Rs 1390 crores, giving way to the court of the prominence of the contract State and issuance of the review of tolls.

The project caught in red tape because of the conflict between the government and the state MSRDC on funding of Rs 1390 crores. The cash-strapped MSRDC was to request that the state government since June 2010 to allocate this sum for the payment of RSOPL. But the state government refused the proposal to release Rs 1390 crores MSRDC to finance the work of servicing to include the amount of subsidy is very high. Instead, the state government has asked MSRDC explore ways to reduce the viability-gap funding by changing the scope of the project, including a reduction in lanes 8-4, the development of the coastal road instead the shipping route and the settlement of Worli Haji Ali sea project reports suggest.

Stocks of real estate increased by bargain hunting. HDIL, Ackruti City, Indiabulls Real Estate and DLF rose between 0.38% to 2.71%.

Auto stocks rose a third day straight as the price of diesel recently of Rs 3 per liter, which was below market expectations of an increase of Rs 4 per liter. Government last week announced the end of the hike in the price of the RS 3-liter diesel, kerosene and cooking RS 2-liter gas cylinder steep SR 50.

Tractor and utility vehicle maker Mahindra & Mahindra (M & M) increased by 1.26%, the winner of stocks for the seventh straight day. The company pre-tax income would have increased 42.85% to Rs 90 crore in the first quarter, in June 2011 at the First District in June 2010.

Largest producer of trucks and buses in India, Tata Motors was 0.85%, with the stock to earn the fourth consecutive day. As per recent reports, Tata Motors intends to approach the Supreme Court to try to stay in the state government of West Bengal would go to farmers for a piece of land that was previously assigned to the foundation of the company, the production of mini-cars. Tata Motors to change the Supreme Court’s decision came after the Court of Calcutta has refused to suspend the law enacted by the state government of West Bengal to take the 997.17 acres set aside to build a plant produces nano cheapest car the world.

Tata Motors stock had been under pressure recently reported a lower pre-tax pay-size car. Tata Motors reported pre-tax fell to 4.61% RS 62 crore in Q1 June 2011 on Q1 June 2010. Tata Motors in worldwide sales of vehicles increased by 11% to 88,251 units in May 2011 to May 2010. Jaguar and Land Rover sales rose 17% to 22 296 units, led by an increase of 30%, Land Rover for sale.

India best small car maker by sales Maruti Suzuki India rose 1.09%, with the stock of winning for the fourth consecutive day. The stock was under selling pressure recently on the problems caused by intense competition in the small car segment. The stock had hit 52-week low of Rs 1,087.15 in intraday trading on June 24, 2011.

Toyota Motor Corp. on Monday joined the small car market in India with Etios Liva. The car will complement the Etios sedan, which was introduced in December, and will compete with Swift, the industry leader Maruti Suzuki India, Figo Ford, Volkswagen Polo and the Hyundai i20 hatchback models.

Hero Honda Motors rose 1.05% after losses the past two days. The action went from 6.07% Friday, June 24, 2011, after the investment company said its promoter group company revoked hero 3.46 crore shares promised. Hero Honda Motors, Hero Investments said promised to revoke crore shares in three tranches 3.46, 7, 8 and June 10, 2011. The promoter group practice revoked crore shares for every 1.19 IL & FS and trust services Company and IDBI Trusteeship and 1.07 crore shares of the trust Axis Services. Revocation message, only 6% of the share of investments hero “in Hero Honda, which is 52 lakh shares remain pledged. This is equivalent to 2.6% stake in Hero Honda.

India, second largest motorcycle manufacturer Bajaj Auto sales fell by 0.62%, when the fleet turned ex-dividend date, June 29, 2011 a dividend of Rs 40 per share for the year ended March 2011. The company reportedly before tax increased by 13.63% and RS 125 crore in Q1 June 2011 on Q1 June 2010.

Automakers begin releasing monthly data on sales volume in June 2011 from Friday July 1, 2011.

Sugar quota was increased on Tuesday, 28 reports of the Board of Directors in June 2011 issued a formal order allows the export of an additional five lakh tonnes of sugar. Shree Renuka Sugars, Balrampur Chini Mills, Bajaj Hindustan, and gained between 3.37% and 5.22%.

Shoe manufacturers have increased at a recent price drop of rubber that could help improve profit margins, if lower prices are compatible. Bata India, Liberty Shoes and Footwear Relaxo gained between 1.48% to 3.12%.

Jammu and Kashmir Bank fell 2.83% after the action become ex-dividend today, June 29, 2011, the dividend of Rs 26 per share for the year ending March 2011.

Ashiana Housing jumped 7.4%, while a wholly-owned units, the company has purchased approximately 40 acres of land in Bhiwadi, Rajasthan to develop a residential colony in the whole area is to be sold around 30 lakh square feet.

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.

A hike in transport costs will increase pressure on the cost of India Inc. As reported by the freight rates increased 8% to 9% with immediate effect on all roads across India after the recent rise in diesel prices.

As reported per capita spending on major capital projects worth Rs 8 lakh crore is expected to be completed in the year ending March 2012 (fiscal 2012). Many of these projects have fallen on the previous year, reports said.

At the same time, the recent petrol, diesel and liquefied petroleum gas prices will also increase inflationary pressures in the economy. Food price index rose by 9.13% and the index of fuel prices increased by 12.84% at June 11, 2011 Board of Directors of the data released on Thursday, June 23, 2011 showed. In the week before, a food and annual inflation was 8.96% of fuel and 12.84% respectively. The index of primary articles rose by 12.62% compared to the annual increase 12.86% a week earlier.

Treasury Secretary Timothy Geithner on Tuesday, June 28, 2011, said economic growth in India continues to maintain the untapped potential for U.S. companies. Changes in the Indian banking and insurance systems, and the production and infrastructure development will benefit both countries, Geithner said that the close bilateral negotiations between the 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.

Asian stocks rose Wednesday, June 29, 2011 before a vote in the Greek Parliament as investors hoped to approve a tight schedule demanded by international lenders. The key benchmark indices in Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan increased from 0.32% to 1.33%. China’s Shanghai Composite fell 0.41%.

The Greek Parliament is implementing a two-day meeting in Parliament on key crunch begins today, June 29, 2011. Greece has pledged to reduce spending in order to receive its next round of grants.

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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