On Fri, Jun 25, 2010 at 10:29 AM, Hardik Shah <[email protected]> wrote:

> *By Rutam Vora
>
> *Amid mixed global cues backed by US Federal Reserve keeping the key
> interest rates unchanged at historic lows close to zero. The FOMC-meet on
> Wednesday pushed mixed sentiments on the US bourses on Wednesday, later it
> was reflected on the Indian bourses with key benchmark index, Sensex posting
> early gains on Thursday, June 24, 2010.
>
> The gains on the Indian bourses were led by metal and FMCG stocks. The
> sectoral index, BSE Metals gained by close to 1% to 15387.31 points, while
> BSE FMCG index too rose by close to 1% at 3232.18 in the morning trades
> today. Other gainers included Capital Goods stocks as the BSE CG index
> posted early gains of 1.21% at 14,674.59 points. The benchmark index, Sensex
> gained by 0.35% to 17818 points in the morning trading hours on Thursday.
>
> *‘Monsoon Wading’ for FMCG Stocks?*
>
> The upbeat mood in the FMCG stocks is seen ahead of the declaration on the
> wholesale price index, inflation data for the year through 12 June 2010,
> including food price index, the primary articles index and the fuel price
> index today.
>
> Leading FMCG stocks including ITC Ltd (BOM:500875) and Ruchi Soya
> Industries (BOM:500368) gained momentum at the early trading hour on the
> Bombay Stock Exchange (BSE) as each stock rose by over 1% on Thursday.
> Britannia Industries Ltd (BOM:500825) gained by close to 1%.
>
> Prices of food articles have remained a key concern for the industry as
> well as consumers. Recently, milk prices in Kerala have been hiked by Rs.3 a
> litre to Rs.23 because of rise in the price of fodder. On the other hand
> monsoon being crucial for the agro produces and the overall food price
> index, all eyes at a good monsoon ahead.
>
> However, India’s MET Department today mentioned that June 1-23 monsoon
> rains were down 11% from normal as monsoon progress seems to have stalled.
> Monsoon rains in India have been 11% lower than the long-term average until
> now due to a nearly one-week delay in its progress, the director general of
> the Indian Meteorological Department said Thursday. Monson may resume
> progress by early next week.
>
> *Metal Stocks regain shine
> *
> Having witnessed sustained losses for two consecutive trading sessions,
> metal stocks have returned back to positive territory on strong global cues.
>
>
> London copper jumped more than 2% on Thursday, lifting Shanghai futures
> aided by strong Japan output data. Copper futures on LME were up early
> Thursday as dollar fell on speculation that Federal Reserve will keep
> interest rates low.
>
> The Committee's decision to stick with its low-interest-rate policy was
> widely expected, given the persistently high unemployment rate and
> continuing weakness in housing and consumer spending.
>
> Metal stocks on Indian bourses help key benchmark indices inch upwards to
> positive territory in early trading session on Thursday. Mining majors
> including Gujarat NRE Coke Ltd (BOM:512579) and NMDC Ltd (BOM:526371) gained
> by 2.65% and 1% respectively, while other metal stocks including Jai Corp
> Ltd (BOM:512237) and Sesa Goa Ltd (BOM:500295) rose 1.2% and 1.6%
> respectively.
>
> Copper majors including, Sterlite Industries (India) Ltd (BOM:500900) and
> Hindustan Copper Ltd (BOM:513599) gained close to 1.5% each in the morning
> trading session on the BSE today. Nissan Copper Ltd (BOM: 532789) zoomed up
> by over 4% on the BSE on Thursday.
>
> Volatility is expected to remain high on Indian bourses today owing to
> traders’ roll over positions in the derivatives segment ahead of the expiry
> of the near-month June 2010 derivatives contracts today, 24 June 2010.
>
> --
> Regards
>
> Hardik Shah
>
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