makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 02.03.2010 TUESDAY

MARKET ENDED 02.03.2010 TUESDAY

SENSEX 16772.56 +343.01

NIFTY 5017 +94.70

NASDAQ 2242.03 -1.84

DJIA 10383.80 -18.97

RS/$ 46.16 +0.31

Indian markets closed above crucial resistance levels Monday after sentiments turned bullish after Finance Minister Pranab Mukherjee presented the Union Budget for 2010-11 in the parliament. Positive cues from global markets also boosted sentiments.

Indices opened with a gap-up for the first time after the budget was announced Friday. The rally was led by auto, metals and banking space. Realty stocks were under pressure for most part of the day but pared losses towards the close. Market also cheered February sales figures from Tata Motors.

The FY11 Union Budget is a more balanced, pro-growth policy document. More money has been put into consumers’ pockets, creating an enabling environment for substituting government consumption with accelerated growth in personal consumption. Headline fiscal deficit target of 5.5% for FY11 is broadly in line with our estimate. While non-tax revenue assumptions are aggressive (US$16 billion from disinvestments, 3G auction), the resolve to get them going gives us confidence that the target will most likely be achieved.

National Stock Exchange’s Nifty closed the day at 5017, up 94.7 points or 1.92 per cent. The broader index hit a high of 5029.45 and low of 4935.35 intraday.

Bombay Stock Exchange’s Sensex ended at 16,772.56, up 343.01 points or 2.09 per cent. The index touched a high of 16,808.49 and low of 16438.45 during the session.

BSE Midcap Index was up 2.31 per cent and BSE Smallcap Index moved 2.43 per cent higher.

Technically, Nifty has closed just above its 20-week EMA (Exponential Moving Average) (currently at 4919) and on lower side, 100-day MA currently at 4744 and then 50-week EMA currently at 4611 may remain important support for markets. Taking into consideration last week’s action, important hurdles to watch out for in near term are 4960-5000 levels on Nifty. Any close above this range may see Nifty testing earlier highs of 5200-5300 levels.

Lot will depend on how the global markets pan out. Foreign funds flow will continue to play an important role in directing the course of our markets. For further upmove indices need to close above the mentioned hurdle of 4960-5000 range with strong volumes. Failure to do so may see indices retracing part of last three week’s gain,” according to a Reliance Money report.

Amongst the sectoral indices, BSE Auto Index surged 4.74 per cent, BSE Metal Index advanced 4.02 per cent and BSE Bankex gained 2.47 per cent.
Biggest Nifty gainers were Tata Motors (13.41%), Tata Steel (6.21%), Mahindra & Mahindra (5.76%), Tata Power (5.54%) and Hindalco Industries (5.41%).
Tata Motors reported a consolidated net profit of Rs 650 crore for the December quarter of 2009, after suffering a loss of Rs 2600 crore last year. The profit was boosted by rise in sales and margins at its Jaguar-Land Rover unit in London as buyers returned after the global crisis.
Further, the company reported 58 per cent jump sales at 69,427 units in February 2010, against 43,811 units sold in the same month last year. The company's passenger vehicle sales in the domestic market grew 43.7 per cent at 29,241 units in the reporting month against 20,348 units in the same period last year, its highest ever sale. Total exports jumped over twofold at 3,237 units compared to 1,318 units in the same month last year.
BPCL (-4.09%), DLF (-1.93%), GAIL (-1.45%), ABB (-1.25%) and ONGC (-1.04%) were the losers.
Market breadth on BSE remained positive with 2,059 advances against 768 declines.
European markets were flat to positive and US stocks are also expected to open little changed. At 4:15 pm IST, Dow Jones futures was down 0.02 per cent, S&P 500 slipped 0.03 per cent and Nasdaq 100 was up 0.16 per cent.