Sensex provisionally up 1.61%.

The Key benchmark indices provisionally closed with decent gains recovering some of the 4% odd losses posted on Monday. Positive global stocks supported market. The BSE 30-share Sensex was provisionally up 237.32 points or 1.61%, off close to 110 points from the day's high and up close to 285 points from the day's low. The Sensex closed above psychological 15,000 mark. It had fallen below this mark on Monday in a broad based sell off. IT stocks fell. Buying was witnessed in Capital goods, realty and metal stocks.

The market was volatile. The market after opening lower turned positive for a brief period before reversing gains tracking weak Asia. Market surged to fresh day's high in mid-morning trade. Market extended gains later as Asian stocks reversed losses and European stocks rose. Market pared gains in mid-afternoon trade.

Global sell-off after a disappointing US consumer sentiment report reigniting concerns about the global economic recovery triggered a sharp sell-off on the domestic bourses on Monday, 17 August 2009. The BSE 30-share Sensex fell 626.71 points or 4.07% at 14,784.92 on Monday.

There is no fresh proposal for a farm debt waiver and economic growth is expected to be 6 percent-plus in the current financial year ending March 2010, Finance Minister Pranab Mukherjee said on Tuesday.

Meanwhile, India's July exports have fallen 26 % from a year earlier, Trade Secretary Rahul Khullar said on Tuesday. Government is not condsidering ban on maize, soymeal exports as of now he said.

Prime Minister Manmohan Singh said on Tuesday that the country was facing a drought threat India reportedly aims to raise planting of winter-sown crops and improve irrigation to make up for the damage to farms and to try to counter rising food prices after poor monsoon rains hurt crops such as rice and sugarcane.

India's growth projection could be trimmed due to a poor monsoon, but the country has adequate food stocks to counter inflationary pressures, the plan panel Deputy Chairman Montek Singh Ahluwalia said on Tuesday.

European shares were higher on Tuesday, with banks and commodity stocks gaining as investors awaited the release of German ZEW figures and U.S. housing starts later in the day. The key benchmark indices in France, Germany and UK were up by between 0.52% to 0.72%.

Asian shares clawed their way back from early lows on Tuesday following wild swings in Shanghai, as investors worried whether more bouts of profit taking will spell the end of the bull market that emerged from the financial crisis.The key benchmark indices in Hong Kong, South Korea, Japan, Singapore rose by between 0.21% to 0.85%.

As per the provisional figures, the BSE 30-share Sensex was up 237.32 points or 1.61% at 15,022.24. The Sensex rose 349.59 points at the day's high of 15,134.51 in afternoon trade. At the day's low of 14,740.26, the Sensex fell 44.66 points in early trade.

The S&P CNX Nifty was up 68.95 points or 1.57% to 4,456.85 as per the provisional figures.

BSE clocked a turnover of Rs 5166 crore higher than Rs 4,977.50 crore on Monday,17 August 2009.

The BSE Mid-Cap index was up 2.16% and the BSE Small-Cap index was up 2.21%.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1702 shares advanced as compared with 909 that declined. 79 shares remained unchanged.

From 30 share Sensex pack, 25 stocks rose and rest fell.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 0.38% to Rs 1947. The stock hit a high of Rs 1,955.80 and a low of Rs 1920.

As per recent report Prime Minister Manmohan Singh has constituted a panel of four senior cabinet ministers that will continuously review the government's position in the Supreme Court case over allocation of gas from the Krishna-Godavari basin to ensure that their ministries don't speak in divergent voices on the vexed issue.

Oil exploration stocks rose as crude oil rose today, snapping two days of losses, as the dollar's decline spurred investors to purchase commodities as an alternative investment. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.

India's largest state-run oil exploration firm by sales ONGC rose 1.27%. Crude oil for September delivery rose 0.15% to $ 66,85 a barrel on the New York Mercantile Exchange.

Cairn India rose 1.46%. As per recent reports, the company is likely to start crude production from its Rajasthan oil fields later this month. The company has already reached pricing agreements for the crude with principal buyers, Indian Oil Corporation and Mangalore Refinery and Petrochemicals.

Capital goods shares rose on government's thrust on infrastructure. Higher government spending on infrastructure sector in 2009-2010 to provide a stimulus to the economy, may result in increase order flow for capital goods firms.

Capital goods stocks, Larsen & Toubro, Punj Lloyd, ABB, Crompton Greaves, Thermax, Praj Industries rose by between 0.3% to 5.08%.

Metal shares rose as Shanghai copper rose on Tuesday after falling by its 5 % limit in the previous session, while London futures bounced back, rising 1%. Steel Authority of India, National; Aluminum Company, Hindalco Industries, Tata Steel, Hindustan Zinc rose by between 1.29% to 5.89%.

Realty shares rose on bargain hunting after Monday's sharp losses on hopes the government's thrust on housing sector in the Union Budget 2009-2010 may help extend recovery in housing demand witnessed in the past few months. Phoenix Mills, Omaxe, Indiabulls Real Estate, Ansal Properties, DLF, Anant Raj Industries rose by between 0.92% to 6.11%.

IT stocks extended recent fall on unexpected decline in a U.S. consumer confidence index after weak US retail sales and increase in weekly jobless claims. IT companies derive a lion's share of revenues from exports to the US. India's second largest IT exporter by sales Infosys fell 0.23% as its American depository receipt (ADR) fell 3.13% on Monday. India's largest IT exporter by sales TCS fell 0.14%. But, India's third largest IT exporter by sales Wipro rose 0.52% even as its ADR fell 4.8% on Monday.

Moser Baer (India) rose 2.07% after the company launched two high-end optical media products in India.

Gammon India rose 1.08% on reports it has been allowed to bid for the proposed Gurgaon metro, a private-consortium funded project.

Ahluwalia Contracts (India) jumped 4.54% after it won electrical and construction orders worth Rs 216 crore since May 2009.

Vishal Information Technologies dropped 1.36% after the company said that a part of the pledged shares were invoked.

Berger Paints (India) rose 5.79% to Rs 48.45 after it priced its preferential issue of 72 lakh shares to Nalanda India Fund at Rs Rs 50.50 each.

Tags: market commentary