Epaper
The Indian Benchmark Index made a good start for the week lead by the heavy weights. The indices rose most in the last five sessions after having lost near 4.5% in the past week.
The gains were lead by Reliance which gained 5% to close the day at Rs 2551.70. The rise on the back of the news that the company which runs a retail chain, was in talks with the U.K.’s Marks & Spencer Group Plc to form a venture that will sell clothes. A rise in crude oil prices for a second consecutive day also helped Reliance, which owns the world’s third-largest refinery. Other significant gainers in the Nifty include ACC,Nalco, Ambuja Cements and Grasim.The market gave a luke warm response to the HDFC-CBOP merger as the swap ratio came in below the market expectations at 1:29. The stock of Centurion Bank lost nearly 15% to end the day at Rs 48.25 as HDFC ended the day losing 3.5% at Rs 1423
The BSE Index,climbed 301.50, or 1.7 percent, to 17,650.57, after falling as much as 1.2 percent. Most of the action satyed in the A group stocks as most of the buying took place in high quality stocks. Both the midcap and smallcap indices under performed the major Index. The midcap index remained unchanged and the smallcap index closed in red losing 0.72% for the day. The new listing Tulsi Extrusions a manufacturer of PVC pipes, has closed at a premium of 64% to issue price (Rs 85) to finish the day at Rs 139.50. Reliance Power made decent gains after a favorable swap ratio announcement over the weekend. The stock closed up nearly 8% to surpass the Rs 450 level.KS Oils was another active stock on the bourses gaining more than 10.5% ending the day at Rs 95.75 as 12.5 million shares changed hands.
— Review written by Research Team @ www.indiabears.com