Asian Economic News
Indian Market Ends Volatile Session Higher
7/1/2009 7:30 AM ET
(RTTNews) -
Wednesday, the Indian market ended a highly volatile session notably higher, as encouraging Markit Economics' Purchasing Managers' report on the manufacturing sector more than offset dismal May export data.
The Markit Purchasing Managers' Index (PMI) based on a survey of 500 companies, witnessed a little bit of slowdown in June from the previous month, but it stayed above the threshold of 50 that separates expansion from contraction. The new orders index fell slightly to 55.3 in June from 55.7 in May, well above the trough of 44.4 that it hit in December 2008. On the other hand exports from India fell for the eight straight month. Exports dropped 29.2% to $11.01 billion in May from $15.55 billion in the same month last year.
While firm global cues helped in the recovery after a 2% loss in the previous session, continued profit taking ahead of the announcement of budget early next week restricted big gains.
After opening modestly higher, the BSE Sensex fell to a low of 14,356 before rising to a high of 14,727 in the afternoon. Since then, the index pared most of its gains and finished at 14,645, up 152 points or 1.05% from its previous close. Likewise, the S&P CNX Nifty rose 50 points or 1.16% to 4,341 and the BSE small-cap index edged up 0.30%, while the broad-based BSE 500 index and the mid-cap index advanced over 1% each.
On the BSE, the market breath was slightly negative, as decliners outnumbered advancers by 1339 to 1255, with 79 stocks closing unchanged. Sector-wise, the benchmark for realty stocks, the realty index jumped over 4%, outperforming the broader market.
Among individual stocks, DLF jumped 4.76%, Mahindra & Mahindra rallied 3.16% and Reliance Infrastructure, Reliance Communication, Tata Motors, Bharti Airtel, Sun Pharma, SBI and Hindustan Unilever ended up over 2% each. On the other hand, Hindalco, ONGC, ACC, Tata Power and Grasim ended in the red.
State Bank of India rose 2.17% after it introduced two special home-loan schemes on Tuesday to lure home buyers. TCS rose 0.68%, Wipro edged up 0.21% and Infosys gained 1.11% amid reports that they are eying contracts worth Rs.2,000 crore from the Indian Air Force and the Army.
United Spirits closed up 0.14% on reports that it is looking to raise funds worth $250-$300 million through a private placement to private equity giants Blackstone, KKR and Capital International.
DLF rallied nearly 5% on reports that hedge fund DE Shaw and Co.'s proposed exit from family-owned DLF Assets could hit a roadblock with the Reserve Bank of India. Ispat Industries soared 7.11% despite reporting a Rs.38.39 crore net loss for the quarter ended March from Rs.48.89 crore profit in the corresponding period last year.
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