Indian Stock market Today

Equities ended sharply higher on Tuesday as bulls staged a come-back after global credit crisis seemed to ease and on reports of another stimulus package by the US to support its financial market. Unlike recent sessions, markets not only opened higher but held on to its gains and moved higher as buying emerged in battered down stocks. Positive cues from the Asian markets and European market provided further support. Bombay Stock Exchange’s Sensex ended 4.5 per cent or 460.30 points higher at 10,683.39. The index touched a high of 10,750.20 and low of 10,250.23. National Stock Exchange’s Nifty closed at 3234.90, up 112.1 points or 3.59 per cent after touching a high of 3254.85. The low was 3117.35. BSE Midcap and Smallcap indices settled 2.31 per cent and 2.03 per cent higher respectively. Jaiprakash Associates (16.25%), Tata Consultancy Services (12.86%), Reliance Communications (11.25%), Tata Steel (10.2%) and Satyam Compturers (9.84%) were the Sensex gainers. Mahindra & Mahindra (-2.1%) and Hindalco Industries (-1.68%) were the only index losers. “Repo rate cut and demand for Reliance Industries brought confidence back in the market. Today’s session was dominated by some deep pocketed traders and so the rally may be short-lived for a week and the Sensex may test 12,500 on the upside,” said Satish Kannav, senior analyst, Arihant Capital Services. The petroleum ministry has informed the Prime Minister’s Office that it is considering imposition of a special oil tax, windfall gains tax, on exploration & production firms on the lines of the B K Chaturvedi committee recommendations. The move would affect companies such as ONGC, Reliance Industries, Cairn India, GSPC, Oil India and Essar. It has, however, ruled out the possibility of imposing the tax on the refining sector. “This is a positive for Reliance Industries which has large interest in refining sector. Rise in shares of RIL indicates that confidence is coming back in the market,” Kannav added. The scrip ended 5.73 per cent higher at Rs 1,397. Effect of the RBI’s repo rate cut was seen mainly in realty stocks and other rate sensitive sectors. Stock specific action was seen in companies which came out with quarterly results. Shares of real estate companies like Indiabulls Real Estate and HDIL ended 28 per cent and 20 per cent higher respectively. BSE Realty Index ended 8.32 per cent higher. Shares of IT companies are on a rise with the fall in rupee against the dollar. BSE IT Index extended overnight gains to close 6 per cent higher. BSE Capital Goods Index and BSE Power Index ended 5.48 per cent and 4.36 per cent higher respectively. Companies like Jaiprakash Associates, Crompton Greaves, Hero Honda and other announced impressive quarterly results. On the earnings front, Kannav added that results are at present not a driving force to guide the market though there may be stock specific actions. “Market is lacking presence of FIIs and HNIs who pay attention to micro factors like earnings. Speculators are taking trading positions for quick gains and are not worried about the performance of companies,” he added