- In a surprise move yesterday, the Chinese central bank reversed its stance from no policy action to cut the reserve ratio by 50 bps spiking off a rally in the equity markets in China from lows of near 4% declines. Chinese Central Banks has cut rates for the first time since 2008. Positive news followed in terms of Central Banks’ (ECB, US FED, BOE, Central banks of Canada, Japan and Switzerland) liquidity move to get $ at reduced rates. The Indian market rally was led by Metal counters that tracked higher prices on the LME followed by Banking stocks that witnessed short covering and a relief run from extreme oversold territory. Banks rallied in anticipation of a softer stance by the RBI in its next meet scheduled in the first half of December. Some profit taking however emerged in the noon session as European markets opened on a softer note.
- Bse Sectoral Indices: Gainers: Metal +4.14%, Bankex +3.72%, Realty +3.54%, Consumer Durables +2.58%, Auto +2.40%. Losers: Healthcare -0.32%. Laggards: FMCG +0.59%.
- Asian Indices: China +2.29%, Hong Kong +5.63%, Japan +1.93%, Singapore +2.20%, S Korea +3.72%, Taiwan +3.98%.
- European Indices*: France -0.26%, Germany -0.30%, UK +0.54%.
Steel Strips & Wheels: CMP: ` 186 (+8%)
The stock gained momentum after announcements from the company that the total sales of steel wheel rims had increased by 7% to 8.16 lakh units in November 2011 as compared to November 2010.
Hindalco: CMP: ` 131 (+7%)
The metal pack topped by Hindalco in the gainer’s list led markets to zoom past psychological barriers in intraday trade. Metals gained as LMEX a gauge of six metals traded on the London Metal Exchange (LME) rallied by near 5% in yesterday’s trade.
Hindustan Dorr-Oliver Ltd: CMP: ` 24 (+2%)
The stock witnessed an uptick post announcements of the company securing an order worth `170 crore from ONGC Petro Additions. With the above new orders, the company will have approximately 2000 MT of equipment to be manufactured at the companys own factory at Ahmedabad.
M&M: CMP: ` 729 (+1%)
The stock cheered a jump of 52.70% in auto sales to 40722 units in November 2011 as compared to November 2010. The stock registered gains of 4% in intraday trade before paving way for some profit taking.
Beating the Street: Gainers were ICICIBank, Hindalco, SAIL, Sterlite, TataMotors, DLF, JPAsso, TataSteel, Hero Moto.
Expectation Belied: Losers were BHEL, BPCL, Dr Reddy, Bharti Airtel, HUL, Maruti, Sun Pharma, ONGC.