PSU stocks advance in firm markets

• rajesh_sangvi
• June 2, 2009

The key benchmark indices surged in early trade led by gains in PSU, realty, capital goods and metal stocks.
The benchmark index Sensex rose 178 points to 14,474 levels and the Nifty was up 1.1 per cent at 4,388.
On Thursday, Anand Sharma was made the new Commerce and Industry Minister as Prime Minister Manmohan Singh expanded his Council of Ministers inducting 59 more and giving portfolios of HRD to Kapil Sibal, Law to Veerappa Moily and Road Transport and Highways to Kamal Nath.

“The allocation of portfolios in the Manmohan Singh government seems to be performance-based. This should go well with the markets. In the next fortnight, the markets may see some decent correction which may take the Nifty below 4,000 levels,

Buying interest was seen across the board with PSU, realty, capital goods and metal stocks leading the gains. The PSU index on the BSE surged 1.9 per cent. The realty index on the BSE surged 1.8 per cent and the capital goods index rose 1.8 per cent. The BSE metal index advanced 1.7 per cent each.
“The markets may see some selling at 4,350 levels. The Nifty has support at around 4,090 levels,” said Anu Jain, VP, IIFL Wealth Management, India Infoline.
Among the Sensex stocks, RCom was the biggest gainer. The stock rose 3 per cent in early trade. JP Associates, Tata Motors and Tata Power Company, up over 2.4 per cent each, were the other major gainers in the pack. However, Sterlite Industries and Maruti Suzuki were showing some weakness in the early deals.
US stocks surged on Thursday as the bond market
recovered, a day after panicky selling pushed long-term borrowing rates to their highest level in six months. The Dow rose 103.78, or 1.3 percent, to 8,403.80. The S&P 500 index rose 13.77, or 1.5 percent, to 906.83, and the Nasdaq composite index advanced 20.71, or 1.2 percent, to 1,751.79.
The key Asian stock indices, however, were trading
mixed today. South Korea’s Kospi slipped 0.5 per cent while Hong Kong’s Hang Seng and Japan’s Nikkei were in the positive terrain.
News beuro,

• Last Modified: June 2, 2009
• Filed Under: Latest News, MARKETS, NATION, WORLD