Friday March 30, 01:30 PM
Maintaining strength... |
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By Equitymaster.com
The indices maintained their strength during the previous hour of trade, as strong buying activity was seen in select index heavyweights. The advance-decline ratio is currently poised at 7 to 3 on the NSE Nifty. While selling pressure is witnessed in energy stocks, selective buying interest is seen in strong from across other sectors.
The BSE Sensex is trading at 13,065 (up 85 points) while the NSE Nifty is trading at 3,818 (up 20 points). The rupee is trading at 43.48 to the dollar.
Banking stocks are currently trading mixed. While gains are being witnessed in HDFC Bank (HDBK.BO, news) (2%) and Kotak Bank (4%), selling pressure marks trading in ICICI Bank (ICBK.BO, news) and ING Vysya bank (both marginally down). According to a leading business daily, HDFC Bank is getting into the primary dealership business with the RBI. The demand for primary dealership is expected to rise while the supply is coming down on account of a smaller government-borrowing programme. This shall prove as a good opportunity for the bank. Along with investment banking, primary dealership was the only business missing from HDFC's bouquet of financial services. The decision by the RBI to allow banks to run primary dealership business departmentally has spurred HDFC Bank to get into this activity.
Retailing stocks are trading mixed currently. While gains are witnessed in Shoppers' Stop and Titan (each 2% up) selling pressure is seen in Pantaloon Retail (down 3%). As per a leading business daily, in order to fund its expansion by way of opening up new stores, Pantaloon Retail is planning to raise as much as US$ 200 m by divesting some of its subsidiaries such as e-commerce, media and capital. The company plans to spend Rs 26 bn in four years to add stores in India's biggest cities and towns, competing with Reliance (RELI.BO, news) Industries' retail venture as also the proposed venture of Bharti Enterprise and Wal-Mart. As reported, the company plans to increase the number of its stores to about 3,500 in 90 cities and towns by 2,010, from 160 stores in 38 cities and towns currently.
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