Markets Trading In Red, Power Stocks Shine
DSIJ Intelligence / 24 Sep 2012
As we wrote in our morning note, the equity markets have broke the positive streak over the weak global cues. Both the indices are trading in red after showing gains of over 2% of Friday.
Credit rating agency S&P meanwhile has cut the India GDP forecast to 5.5% despite the host of reforms in the country. Earlier the planning commission has also cut the five year GDP forecast to 8.2% from 9%.
According to Economic Times, the finance minister P Chidambaram will monitor all expenditure over Rs 200 crore in order to keep the fiscal deficit in control. He has asked the revenue department to scout for more funds to cushion the impact of higher subsidies.
| Benchmark Indices | Current Value | Change (%) |
|---|---|---|
| BSE Sensex | 18714.77 | -0.20% |
| Nifty | 5685.35 | -0.10% |
| Hang Seng | 20,724.17 | -0.05% |
| Nikkei | 9,063.17 | -0.52% |
| Shanghai | 2,032.44 | 0.28% |
On the indices front, the power index is up 2.68% at this time. The investors are actively trading in the power stocks as the government is set to announce the reforms in the power sector. Realty index is up 1.77 while Capital goods index is trading up by 1.09%. Defensive FMCG index is down 1.32% at this time. IT, Teck and Oil and Gas are also trading in red.
Among the Sensex stocks, BHEL is up 6% as the reforms in the power sector will benefit the power equipment maker. Jindal Steel is up 4% while Tata Power is up 3%. Shares of Maruti Suzuki have also gained 3% over the slated launch of new Alto car in October. Shares of DRL, Hero, M&M, Sterlite have are also trading with over 1% gains.
Among the other stocks, power sector stocks such as Lanco Infra, Adani Power, JSW energy, REC, GMR infra etc all are trading with significant gains. Shares of Suzlon energy have also gained by 6%.
As we expected, share of Reliance Industries have turned volatile after it said that it will surrender two more exploration blocks on bad outlook.
The advance decline ratio on BSE is currently positive with total 64% stocks advanced in value.
As this is a derivative expiry week, we expect the market to remain volatile with positive bias today.
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