Share Market

Friday, October 26, 2007

Posted by Snehsan

share Bazzzzzar :

Sensex ends above 19200

The markets reacted positively SEBI's decision on P-Notes with the benchmark index closing at 19,243 levels, up 2.5 per cent or 472 points.

The Sensex touched a high of 19,276 levels in intra-day deals. In broader markets, the Nifty surged 2.4 per cent or 133 points to settle at 5,702 levels.

"The markets look attractive and present a good buying opportunity," noted Ashish Kapur, CEO, Invest Shoppe.

"Bulls are certainly in the drivers seat. I expect the Sensex to breach 20,000 levels in the times to come," added Sandeep Wagle, Chief Technical Analyst, Angel Broking.

SEBI decision

Dismissing all speculation that the P-Notes policy may not go through, the five-hour SEBI board meeting on Thursday gave a go ahead to the draft without making any changes.

FIIs and sub-accounts shall not issue participatory notes with underlined assets as derivatives have been approved by the board. "The current decision to wound up in 18 months also been approved by the board," SEBI Chairman M Damodaran said.

Markets This Week

BSE Midcap up over 9% Smallcap up 8.5%

Cap Goods up over 20% Bankex up over 15%

Metals up 15% Realty up over 10%

L&T up 12% RPL up 7%

NALCO up 6.5% SBI up 7%

"The board also decided that further issuance of P-Notes by the sub-accounts of FIIs to be discontinued," he explained.

Analysts feel that Thursday's decision is a good move for the markets in the long-run.

"I don't think that the hedge funds are pulling out of India. My understanding is that they will now regulate the inflows," said Deven Choksey, MD, K R Choksey Securities.

According to Thursday's proposals, a single investor can hold up to 49 per cent in broad based fund, which means that it could be easier for smaller hedge funds to come together to launch broad based funds which needs at least 20 investors.

"There are a few grey areas in the SEBI policy. FII inflows may take a little more time to come into India," said Amisha Vora, Joint MD, Prabhudas Lilladher.

Leading the charge at the Sensex on Friday was Larsen & Toubro. The counter surged 12.2 per cent or Rs 420 on the back of strong second quarter results. The company reported a net profit of Rs 348 crore for Q2FY08, an increase of 73 per cent.

SBI, BHEL, Mahindra & Mahindra, ONGC, ICICI Bank, Satyam Computer, NTPC, Reliance Industries, Tata Motors, Maruti Suzuki India and TCS were some of the other notable gainers.

However, Bharti Airtel at Rs 993 levels skidded 2.6 per cent or Rs 26. Hindustan Unilever, Ambuja Cements, ITC Limited, Ranbaxy, Cipla and Dr Reddys also lost ground.

Banks firm

Among sectoral indices, the BSE capital goods index was the top gainer that vaulted 7.2 per cent or 1,239 points by close. Dredging Corporation (up 17.7 per cent), Lakshmi Machine Works (up 15 per cent), Gammon India (up 12.4 per cent) and BEML (up 7.5 per cent) were the top gainers besides Larsen & Toubro.

DLF Limited and Akruti Nirman logged gains of over four per cent each in the realty pack. Parsvnath Developers, HDIL, Sobha Developers, Peninsula Land, Omaxe Limited, Anant Raj Industries, Unitech Limited also held firm.

Strength was also visible in metal counters. Jindal Steel & Power, NALCO, SAIL, Bhushan Steel, Sterlite Industries, Sesa Goa, Welspun India, Hindalco, Hindustan Zinc and Tata Steel were some of the top gainers.