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Nifty back at 5k levels but postive conviction still far away

August 30th, 2011

The Indian stock markets continued their second day of movement in the green territory but it appears the positive conviction of a long term positive bias is still far away. The Indian stock markets followed its Asian pears in having making a positive closing however the Eurozone is trading mixed. FTSE (on 30 Aug) is in the green while CAC and DAX are marginally in the red indicating that the nervousness is not yet gone.

SENSEX closed the day at 16676.75 gaining 260.42 (1.59%) while NIFTY made several attempts and finally closed above the 5k mark at 5001.00 gaining 81.40 (1.65%). The broader CNX Midcap closed at 7294.75 adding 93.25 (1.29%) while BSE Smallcap has shut shop at 7131.48 adding 77.67 (1.1%) in trade today.

Market reports are out that Reliance Industries (BSE: 500325; NSE: RELIANCE; ISIN: INE002A01018) completed the sale of 30% of its 21 oil and gas blocks BP in a 7.2 bn deal. The stock closed at Rs. 781.50 up Rs. 27.45 or 3.64%.

ONGC is likely to hit markets on September 20. It is likely to file FPO documents with SEBI by September 8. With volumes of 7.22m traded today, the script closed the day at Rs. 263.30 down 11.65 (-4.24%).

Trouble in the Manesar plant of Maruti Suzuki India (BSE: 532500; NSE: MARUTI; ISIN: INE585B01010) is not yet over and this will show an impact in the roll out of the Swift. Waiting period for the delivery of the cars is expected to go up. The script managed to close the day in the green today after getting punished yesterday. Maruti closed the day at Rs. 1092.35 up 12.35 (1.14%).

Stock market numbers for the month of August 2011 are out. It was reported that FIIs have sold over Rs 10000 cr as the Sensex lost 1500 pts during the month.

The Indian economy grew a meagre 7.7% during the first quarter of fiscal year 2012 i.e from April to June. It was 9.3% during the same quarter last year. The markets tumbled a bit soon after the news came out but managed to recover later.

Reports are out that the debt starving Reliance ADAG is planning to sell upto 49% stake in DTH business.

Media reports are out that the Mahindra Satyam - Tech Mahindra merger will gain momentum. The companies will appoint bankers to finalize merger details, it is reported. Satyam closed the day in green at Rs. 66.90 up 1.45 (2.22%) with volumes of 3.5m shares traded today.

The Indian stock markets will have a two day holiday. August 31 being Ramzan ID and September 1 being Ganesh Chaturthi.

Entry Filed under: Equity Markets, IT & ITes, Oil & Petro Chemicals, Closing Bell