Asian markets. Capital goods

• tanvi_singh
• June 10, 2009

Asian markets. Capital goods, power and metal stocks were driving the Indian markets.
Asian stock markets recovered on Wednesday as oil prices touched a new high for 2009 near $71 a barrel and fears of inflation eased in China. Major Asian indexes gained 2 per cent or more as buyers returned after two days of losing sessions.
China reported prices fell in May for a fourth month, moderating the threat of inflation and giving Beijing a freer hand to carry out its giant stimulus plan.

The Sensex was trading at 15,534, up 407 points, while Nifty had advanced 131 points to 4,682. Other key benchmark indices were also firm. Both the CNX midcap and BSE smallcap indices were up over 2.8 per cent.

Clearly, we have seen a dramatic change in mood after the elections. And a lot big funds are still underweight on India and a lot of HNI or retail money is still waiting to come into the equity market. Indian markets are expected to show an uptrend till the budget,
Among the capital goods stocks, L&T, Usha Martin and ABB were up over 4-6 per cent on hopes that the government’s actions will boost this sector. Metal stocks were higher on a rise in commodity prices as investors hope that economic activity will improve and boost the appetite for basic materials. A falling dollar also helped push commodity prices higher, and oil settled above $70 a barrel for the first time this year.

In the metal stocks, Tata Steel, Hindalco and Sterlite were up 4.5-5.5 per cent. Among other blue chips, Tata Power, Rel Infra and HDFC Bank were up over 6-7 per cent.

Satyam again hit the 10 per cent upper circuit while Tech Mahindra was up over 11 per cent.

US stocks ended a quiet day mostly higher overnight as traders bought commodities and technology stocks. The Dow Jones industrial average fell 1.43, or less than 0.1 per cent, to 8,763.06. The broader S&P 500 index rose 3.29, or 0.4 per cent, to 942.43, and the technology-heavy Nasdaq composite index rose 17.73, or 1 per cent, to 1,860.13.
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• Last Modified: June 10, 2009
• Filed Under: Latest News, MARKETS, NATION, WORLD