Business Standard

BSE Sensex edges up, still in consolidation mode

SENSEX-NIFTY-SBI-PNB-RIL-ONGC:BSE Sensex edges up still in consolidation mode

Related News

mumbai  July 4, 2012, 17:38 IST

mumbai  07 04, 2012, 17:40 IST

 

The posted slight gains on Wednesday, but enough to notch its highest close since April 19, after government-owned lenders such as rose as valuations were seen lagging private peers.

Miner surged 4.3 percent after Karnataka recommended approval of eight iron ore mines in the state, including a 2.2 million tonnes-per-year mine owned by the unit of Vedanta Resources .

However, the slight overall gains marked a third day of range-bound trading. Traders cited a period of consolidation after strong gains in June, when the BSE index rose 7.5 percent.

Foreign banks are becoming more optimistic about Indian shares, citing mainly valuations. UBS became the third investment bank after Deutsche Bank and J.P.Morgan in recent weeks to upgrade indexes to "overweight.

Still, the global risk environment will remain essential.

"Even the foreign brokerages started upgrading India. I think everybody was highly underweight and are now catching up," Hitash Dang, Vice President at Jaypee Capital

The BSE Sensex rose 0.2 percent to 17,462.81 points. The rose 0.3 percent to 5,302.55 points.

Although the BSE way outperformed the 3.5 percent gain in the MSCI Asia-Pacific index excluding Japan in June, the situation has reversed this month.

The regional index is up 2 percent this month versus a 0.2 percent gain for India's benchmark indicator.

In a separate report, Citigroup recommended investors to opt for cyclicals, saying valuations had lagged too far behind defensives and noting slowing economic growth had been sufficiently priced into shares.

Public sector banks were among the leading gainers on Wednesday.

State rose 1.9 percent, while rose 2.2 percent. Analysts said valuations have lagged private lenders.

SBI, for example, has gained 5 percent in June versus a 15 percent jump in shares of private lender ICICI .

The approval of new iron mines by India's southern Karnataka also sparked gains in Sterlite Industries , which ended up 5.3 percent. Sterlite will be merged with Sesa Goa, as part of Vedanta's plans to consolidate some of its units.

A decision on whether to approve the state government's decision is expected from a Supreme Court-appointed committee later on Wednesday.

Steel makers gained at the prospect of new supplies from the mines. r ose 4.5 percent.

Shares of major air conditioner manufacturers rallied after weaker-than-expected rainfalls so far during the monsoon season are sparking hopes of increased sales.

Whirlpool India Ltd shares rose 9.9 percent, while Ltd rose 7.3 percent.

Shares in India's rose 3.1 percent, a day after the company posted better-than-expected June vehicle sales, traders say.

However, some recent blue chip outperformers fell. Reliance Industries lost 0.3 percent, ending down for a third consecutive session after gaining 4.6 percent in June.

Oil and Natural Gas Corp (ONGC) fell 2 percent having surged 14.7 percent since the start of June as of Tuesday's close on dropping oil prices.

 

Read more on:   
|
|
|
|
|
|
|
|
|
|
|
|
|
|

BSE Sensex edges up, still in consolidation mode

SENSEX-NIFTY-SBI-PNB-RIL-ONGC:BSE Sensex edges up still in consolidation mode

The BSE Sensex posted slight gains on Wednesday, but enough to notch its highest close since April 19, after government-owned lenders such as SBI rose as valuations were seen lagging private peers. mumbai  July 4, 2012, 17:38 IST

mumbai  07 04, 2012, 17:40 IST

 

The BSE Sensex posted slight gains on Wednesday, but enough to notch its highest close since April 19, after government-owned lenders such as SBI rose as valuations were seen lagging private peers.

Miner Sesa Goa surged 4.3 percent after Karnataka recommended approval of eight iron ore mines in the state, including a 2.2 million tonnes-per-year mine owned by the unit of Vedanta Resources .

However, the slight overall gains marked a third day of range-bound trading. Traders cited a period of consolidation after strong gains in June, when the BSE index rose 7.5 percent.

Foreign banks are becoming more optimistic about Indian shares, citing mainly valuations. UBS became the third investment bank after Deutsche Bank and J.P.Morgan in recent weeks to upgrade indexes to "overweight.

Still, the global risk environment will remain essential.

"Even the foreign brokerages started upgrading India. I think everybody was highly underweight and are now catching up," Hitash Dang, Vice President at Jaypee Capital

The BSE Sensex rose 0.2 percent to 17,462.81 points. The Nifty rose 0.3 percent to 5,302.55 points.

Although the BSE way outperformed the 3.5 percent gain in the MSCI Asia-Pacific index excluding Japan in June, the situation has reversed this month.

The regional index is up 2 percent this month versus a 0.2 percent gain for India\'s benchmark indicator.

In a separate report, Citigroup recommended investors to opt for cyclicals, saying valuations had lagged too far behind defensives and noting slowing economic growth had been sufficiently priced into shares.

Public sector banks were among the leading gainers on Wednesday.

State Bank of India rose 1.9 percent, while Punjab National Bank rose 2.2 percent. Analysts said valuations have lagged private lenders.

SBI, for example, has gained 5 percent in June versus a 15 percent jump in shares of private lender ICICI .

The approval of new iron mines by India\'s southern Karnataka also sparked gains in Sterlite Industries , which ended up 5.3 percent. Sterlite will be merged with Sesa Goa, as part of Vedanta\'s plans to consolidate some of its units.

A decision on whether to approve the state government\'s decision is expected from a Supreme Court-appointed committee later on Wednesday.

Steel makers gained at the prospect of new supplies from the mines. JSW Steel r ose 4.5 percent.

Shares of major air conditioner manufacturers rallied after weaker-than-expected rainfalls so far during the monsoon season are sparking hopes of increased sales.

Whirlpool India Ltd shares rose 9.9 percent, while Voltas Ltd rose 7.3 percent.

Shares in India\'s Ashok Leyland rose 3.1 percent, a day after the company posted better-than-expected June vehicle sales, traders say.

However, some recent blue chip outperformers fell. Reliance Industries lost 0.3 percent, ending down for a third consecutive session after gaining 4.6 percent in June.

Oil and Natural Gas Corp (ONGC) fell 2 percent having surged 14.7 percent since the start of June as of Tuesday\'s close on dropping oil prices.

 

image

Read More

Icra places 14 auto component makers under watch

Rating agency Icra today placed 14 auto component manufacturers on "rating watch with developing implications", following lockout at Maruti Suzuki's ...

Recommended for you

Advertisements

Quick Links

Market News

Gulshan Polyols rallies on fund buying

Reliance mid and small cap fund acquired 595,000 shares or 6.7% stake in Gulshan Polyols at price of Rs 250 per share.

Magma Fincorp surges ahead of board meet

The board of directors of the company will meet today to consider issue of equity shares on preferential basis.

Defence stocks in focus; Bharat Electronics, BEML gain 4%

Dynamatic Technologies, Astra Microwave, Pipavav Defence and Walchandnagar Industries up 2%-6% on the NSE.

Fortis Healthcare hits 52-week high on stake sale in Singapore hospital

The stock was up 4% at Rs 170 on the National Stock Exchange.

New LNG policy won't impact gas players much

Analysts don't see much benefits for GAIL and Petronet LNG as they will have to forego part of marketing margins and re-gasification tariffs

 

Back to Top