Post -Market Commentary - July 23 2008

Market cheers UPA win, Sensex ends 6% up (838 POINTS UP)

Victory of UPA government in trust vote in the parliament on Tuesday revitalised the bulls who bought heavily across the sectors. Interest sensitive sectors like banks and real estate rallied on expectations of reforms in the banking and insurance space while power scrips advanced on prospects of Indo-US nuclear deal.

Bombay Stock Exchange’s Sensex closed at 14959.50, up 855.30 points or 6.06 per cent. It touched a high of 14,979.90 and low of 14,568.22.

National Stock Exchange’s Nifty ended at 4,481 up 5.68 per cent or 241 points up. The borader index touched a high of 4491.55 and low of 4246.70.

BSE Midcap Index gained 5.01 per cent to close at 5613.78 and BSE Smallcap Index ended 4.21 per cent up at 6811.84.

Reliance Communications (12.12%), ICICI Bank (12.04%), HDFC (11.29%), State Bank of India (11.17%) and BHEL (10.86%) fronted the Sensex rally.
Cipla (-2.42%) and Hindustan Unilever (1.42%) were the only losers in the 30-share index.

BSE Bankex ended 10.37 per cent up, BSE Realty Index gained 8.38 per cent and BSE Capital goods Index closed 8.14 per cent higher.

Market breadth was impressive with 2254 advances against 445 declines on BSE while on NSE, there were 1760 gainers and 111 losers.