QUICK REVIEW: 10-03-2010

The key benchmark indices posted small gains as European markets reversed early losses and US index futures rose. Most Asian stocks rose, reversing initial losses. The BSE 30-share Sensex was provisionally up 39.62 points or 0.23% to 17,092.16, off 91.35 points from the day's high and up 64.24 from the day's low.

The market breadth was weak after a strong start. Auto stocks edged higher on fresh buying. Banking shares were mixed. Telecom pivotals saw divergent trend. But, IT stocks declined on profit taking following recent gains triggered by upbeat US jobs data. Index heavyweight Reliance Industries advanced close to 2%, moving past the Rs 1000 mark on reports the firm is close to striking hydrocarbon at its Palar deepwater block in the Cauvery basin. Hero Honda Motors struck a record high to Rs 1940 on BSE in intra-day trade today, 10 March 2010.

The market edged higher in early trade. It surged to hit the day's high in mid-morning trade. The market pared gains in early afternoon trade. The market slipped into the red in afternoon trade. It moved between positive and negative zone near the flat line later.

The follow-on public offer (FPO) of iron ore miner NMDC was subscribed just 9% by 15:00 IST on the first day of the issue today, NSE data showed. The government is divesting 8.38% stake in NMDC through the FPO as a part of its aggressive divestment drive to raise funds in a bid to bring fiscal deficit down. The company's FPO will close on Friday, 12 March 2010. The price band has been fixed between Rs 300 and 350.

European markets turned positive, reversing early losses. Key benchmark indices in UK, Germany and France were up by between 0.22% to 0.31%.

Asian stocks fluctuated as shipping lines and oil companies declined, while Australia's largest telephone company rose on speculation it will avoid a breakup. The key benchmark indices in South Korea, Japan, Indonesia, Taiwan and Singapore were up by between 0.08% to 0.80%. However indices in China and Japan declined 0.66% and 0.04% respectively. Hong Kong's Hang Seng index was unchanged.

Trading in US index futures showed that the Dow could rise 13 points at the opening bell on Wednesday, 10 March 2010. Futures were earlier in the red.

Investors will monitor US retail sales for February 2010 and Reuters/University Of Michigan Consumer Sentiment Survey for March 2010, both due on Friday, 12 March 2010, for any hints on the health of the global economy.

On the political front, the Rajya Sabha on Tuesday took a historic and giant step by voting to amend the Constitution, providing one-third reservation of seats in Parliament and State Assemblies for women. The Bill has to be passed by the Lok Sabha and ratified by 50 per cent of the States before it comes into effect.

Going ahead, the key triggers for the stock market are structural reforms such as decontrol of petrol and diesel prices, targeting of food subsidies, and financial sector reforms such as increase in foreign direct investment in insurance sector.

The government will announce the industrial output data for the month of January 2010 on Friday, 12 March 2010. Industrial output grew 16.8% in December 2009.

Meanwhile, the fourth and the last installment of advance tax by India Inc due on 15 March 2010 will give a broad indication of fourth quarter earnings.

The BSE 30-share Sensex was up 39.62 points or 0.23% to 17,092.16, as per provisional closing. The index rose 130.97 points at the day's high of 17,183.51 in morning trade. The Sensex lost 24.62 points at the day's low of 17,027.92 in early trade.

The S&P CNX Nifty was up 14.45 points or 0.28% to 5115.95

The market breadth, indicating the overall health of the market was weak. On BSE, 1672 shares declined as compared with 1227 that advanced. A total of 76 shares remained unchanged. The breadth was much stronger in opening trade.

Among the 30-member Sensex pack, 17 advanced while the rest slipped. NTPC (down 1.38%), Larsen & Toubro (down 0.78%), and Sun Pharma (down 0.98%), edged lower from the Sensex pack.