Market Opens Lower But Suddenly Gains Momentum

The market follows the yesterday’s trend and also today opens lower backed by the sharp negative cues from the global markets. But suddenly the market gained its momentum and reversed its trend into the positive territory. The significant buying witnessed in the selective scrips mainly led by the Capital Goods, Power and Metal stocks. However, the Auto and FMCG stocks are still lagging behind. The broader market is also trading in line with the benchmark index in the opening trade.

The market surged in late trade ending with decent gains shrugging off subdued to weak trend in Asian and European markets. It had edged lower at the onset of the trading session tracking subdued-to-weak trend in Asian markets before bouncing back shortly. Banking stocks surged in late trade. Power stocks rose. Realty and IT stocks declined. Capital goods stocks rose on reports Finance Minister P Chidambaram met representatives from auto and capital goods industries to discuss industrial slowdown after recent weak Index of Industrial Production (IIP) numbers.

HDFC Bank and HDFC were major gainers from Sensex pack. The market breadth was strong. Buying was witnessed in select mid-cap and small-cap stocks.

Asian and European stocks edged lower after Washington Mutual Inc, the largest US savings and loan firm, said on Tuesday, 8 April 2008, it expected a large quarterly loss and minutes from the Federal Reserve's latest meeting showed some of the central bankers saw the possibility of a prolonged and severe US economic downturn.

The overall market breadth is positive as 1163 stocks are advancing whereas 521 stocks are declining on BSE.

At 10.30AM, the BSE Sensex was up by 82.62 points at 15,670.24 and the Nifty was up by 14.15 points to 4,723.80.

The BSE Mid Cap increased by 74.13 points to 6,457.15 and the BSE Small Cap advanced by 87.82 points to 7,901.99

L&T reported the top gainer from the BSE Sensex pack. It is trading with a gain of 1.65% at Rs.2,624 while Grasim Industries the top loser declined by 1.38% to Rs.2,525.

BSE Capital Goods index advanced by 95 points to trade at 12,623.84. The major gainers are Siemens, BHEL, L&T and BEML grew by (1.85%), (1.42%), (1.38%) and (1.44%) to Rs.590, Rs.1,737, Rs.2,617 and Rs.969.45 respectively.

BSE Power index improved by 31.68 points to trade at 3,037.16. The top gainers are Reliance Power inclined by (3.20%) to Rs.362.60, GVK Power increased by (1.92%) at Rs.39.90 followed by Tata Power and Reliance Energy up by (1.77%) and (1.35%) to Rs.1,154 and Rs.1,166.

Tata Power is trading higher by (0.79%) at Rs.1,143. The company in order to meet the requirements of Hooghly Met Coke & Power plants is going to set up a 30mw gas based power plant in Haldia.