MARKET INSIGHTS: On Thursday Aug 19 2010, Bulls were in commend as the key benchmark indices struck 2-1/2-year highs, extending Wednesday’s (18 August 2010) gains, as the latest data showed easing of food and fuel inflation in early August 2010, which may reduce the pressure on the central bank for further monetary action to rein in inflation. The BSE 30-share Sensex was provisionally up 185.34 points or 1.02%, up 165.96 points from the day’s low and off 32.81 points from the day’s high. Data showing sustained buying by foreign funds, underpinned sentiments. European stocks were trading mixed while Asian markets ended on a firm note. The market opened on a firm note, with the key benchmark indices hitting 2-1/2-year highs. Stocks extended gains in morning trade on firm Asian equities. The market struck a fresh 2-1/2-year high in mid-morning trade as pivotals extended early gains. The market extended gains in early afternoon trade after the latest data showed the pace of rise in inflation slowed early this month. The market pared gains in afternoon trade as European stocks slipped into the red, soon after a firm opening. Frenzied buying in index pivotals pushed the key benchmark indices to fresh 2-1/2-year highs in mid-afternoon trade. Stocks held firm in late trade.
The market breadth was positive. Banking and financial shares rallied on fresh buying, with HDFC Bank hitting a record high and HDFC and ICICI Bank scaling 52-week highs. Among PSU banks, Union Bank of India and Canara Bank struck record highs. ITC and Bajaj Auto registered lifetime highs. Index heavyweight Reliance Industries (RIL) gained over 1%. Shares of software exporters were subdued ahead of a key US economic data on the initial jobless claims due later in the global day. Auto stocks declined on profit booking.
European stocks were trading on a mixed note in volatile trade on Thursday. France’s CAC 40 gained 0.69%. Germany’s DAX was unchanged. UK’s FTSE 100 was down 0.09%. Asian markets edged higher on Thursday, 19 August 2010, led by technology and industrial companies. The key benchmark indices in Japan, South Korea, Indonesia, Singapore, Hong Kong, Taiwan and China rose by between 0.06% to 1.32%.
NEWS ROOM: The market regulator Securities & Exchange Board of India (Sebi) on Wednesday, 18 August 2010, proposed to double the investment limit for retail investors to Rs 2 lakh for each application from the current limit of Rs 1 lakh, to help them get more chance in initial public offerings. Meanwhile, Sebi has barred mutual funds from writing options or purchasing instruments with embedded written options, as the market regulator put curbs on mutual funds’ exposures to derivatives.
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