Daily Market View: Slower gains
Moneylife Digital Team 28 June 2010

As we suggested on Friday, the market went on to rise but a reversal can hit anytime. Watch out for 17,800

The market ended in the green on the positive sentiment triggered by the fuel price deregulation announced last Friday and the good monsoon forecast. The Sensex surged 200 points at 17,774 (up 1.1%) and the Nifty settled 64 points higher at 5,335 (up 1.2%). The indices started the day with a sharp rise. They traded range-bound till early afternoon and touched their intraday highs in the afternoon session taking a cue from European markets.

Asian markets were up on Monday on easing of concerns over the drafting of a harsh bill by Washington for regulating the banking sector and conclusion of the G-20 summit, where leaders agreed to take their own paths to ensure economic growth. Key benchmark indices in Taiwan, South Korea, Indonesia, Hong Kong and Singapore were up by 0.1% to 0.6%. Markets in China and Japan were down 0.4% to 0.7%. 

The US markets were up on the expectation that the financial regulation bill wouldn't weigh on Wall Street profits and as Oracle's strong results revived hopes about business spending. The Dow was down 9 points (0.09%) at 10,143.8. The S&P 500 was up 3 points (0.3%) at 1,076.7. The Nasdaq was up 6 points (0.27%) at 2,223.

Japan's retail sales expanded for the fifth straight month in May, though the growth in spending lost momentum as government stimulus measures faded. Retail sales rose 2.8% from the same month a year earlier, the government said on Monday.

World leaders agreed on Sunday (27th June) to take different paths for cutting budget deficits and making their banking systems safer. In a reversal from the unity of the past three crisis-era G-20 summits, the leaders left room to move at their own pace and adopt "differentiated and tailored" policies.

Back home, the weather office said that the annual monsoon should revive in two days after a 10-day lull, raising hopes for a pick-up in soybean planting. The rains were 12% below normal from 1st June to 27th June. Countrywide rainfall was 122.4 mm during the period against a normal 139.7 mm.

Foreign institutional investors were net sellers of equities worth Rs307 crore on Friday. Domestic institutional investors were net sellers of stocks worth Rs446 crore.

Venus Remedies (up 1.4%) has marked its presence in the Australasia region by receiving a patent from Commissioner of Patents, Trademarks & Design, Intellectual Property office of New Zealand for its antibiotic 'Potentox', a fixed dose combination of cefepime and amikacin. This combination is a super-specialty product indicated for the treatment of hospital-acquired pneumonia, community-acquired pneumonia and febrile neutropenia.

Reliance Industries (RIL) (up 2.3%) has announced its seventh oil discovery in exploration block CB-ONN-2003/1 (CB 10 A&B), awarded under the fourth round of the New Exploration Licensing Policy (NELP-IV). The well CB10A-N1 was drilled to a total depth of 1579 metres in Part A of the block.

HSIL's (up 0.9%) step-down subsidiary in The Netherlands-Haas International-has entered into a definitive share-purchase agreement to acquire 100% equity share capital of Barwood Products (Staffordshire), in an all-cash transaction. The acquired company is a small boutique manufacturer of specialised bathroom ceramics. With this acquisition, the building products division of HSIL hopes to get far greater reach in the UK and other European countries.

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