Aug 3, 2009

Nifty Crosses 4700; makes a new 52-week High

The markets moved northwards with the start of a new week and clearly mirrored the European markets and closed at 52-week highs, led by gains in auto, realty and metal stocks.

Indices turned choppy after a positive start as market lacked triggers from domestic front post earnings season. It got the push from European peers who also hit new highs of 2009 after earnings threw positive surprises.

Bombay Stock Exchange?s Sensex closed at 15,924.23, up 253.92 points or 1.62 per cent. The index hit a 52-week high of 15963.36 after touching a low of 15,608.40 in early trade.

National Stock Exchange?s Nifty settled at 4711.40, up 74.95 points or 1.62 per cent after hitting a new 52-week high of 4723.30.

Meanwhile, clearing the government?s stand on the gas dispute between Reliance Industries and Reliance Natural Resources, Petroleum Minister, Murli Deora said the government had no role in the Ambani family dispute. "We have nothing to do with the private dispute of two industries or industrialists. However, we have everything to do with protecting the interests of the government and public interest, this is our constitutional and legal obligation," he said. This saw shares of RIL close 2.96 per cent higher while RNRL was up 0.66 per cent.

The BSE Midcap Index surged 2.36 per cent and BSE Smallcap Index gained 1.74 per cent. Sector wise, BSE Auto Index surged 4.6 per cent, BSE Realty climbed 4.19 per cent and BSE Metal Index advanced 3.41 per cent.

Among sectors, auto makers expect the growth momentum in sales to continue in the next few months, especially in the upcoming festival season. And that after posting double-digit jump in sales in July. Car sales in the domestic market registered a 28% growth to 67,528 units in the month. The country?s largest car maker, Maruti Suzuki India (MSI), reported a 33% jump in sales to 78,074 cars. Utility vehicle major Mahindra & Mahindra?s sales grew 27% to 21,957 vehicles in July.

Market breadth was positive on the BSE with 1761 advances and 953 declines. The biggest Sensex gainers were Hindalco Industries (7.98%), Mahindra & Mahindra (6.88%), Reliance Communications (5.17%), BHEL (5.15%) and Tata Steel (4.52%).

Hindustan Unilever (-2.25%), ITC (-0.7%), HDFC Bank (-0.39%) and HDFC (-0.17%) were the losers.

In another development, Hindustan Unilever said it is planning to lease its famed headquarters in south Mumbai--to top corporate or banks. The company is understood to have mandated Jones Lang LaSalle Meghraj to handle the deal.

European markets were upbeat as positive earnings from corporates gave hopes of some recovery in the economy. At 5:15 pm, FTSE 100 was up 1.59 per cent, CAC 40 gained 1.55 per cent and DAX moved 1.63 per cent higher. US markets are also likely to have a gap-up opening. Dow Jones futures were up 0.95 per cent, S&P 500 futures gained 1 per cent and Nasdaq 100 moved 1.15 per cent higher.



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