Tuesday, July 22, 2008

Post-Market Commentary Tuesday, July 22, 2008

Market surges Up in choppy trade ahead of trust vote
The key benchmark indices shrugged off weak global cues on expectations that the Congress-led United Progressive Alliance (UPA) government will win the trust vote in the parliament. Volatility was high in the second half of the trading session. Power, FMCG and metal stocks were in demand. All the sectoral indices on BSE, barring the auto index, ended in green.
The Indian stock market has witnessed a solid surge in the past four days ahead of the trust vote. The government is seeking the trust vote after the Left parties early this month withdrew support to the government. Reports suggest that the government has a wafer-thin edge of winning the trust vote.
Electronic voting will take place on the trust motion in parliament at 18:00 IST today, Lok Sabha Speaker Somnath Chatterjee said. An hour before the actual voting, Prime Minister Manmohan is expected to reply to the debate. A debate on the trust vote is going on in the parliament since yesterday in a special session being held for the purpose.
If the government wins the confidence vote it will continue to be in power. If the government loses the trust vote, the president could ask the prime minister to continue in power as a caretaker government. The Election Commission of India will then fix a date and mid-term polls will be held.
As per provisional closing, BSE Sensex was up 302.28 points or 2.18% at 14,152.32.

S&P CNX Nifty advanced 101.25 points or 2.43% at 4260.75.

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