Sensex strikes back with a vengeance as world stocks rise

Sensex provisionally jumps 600 points

Stocks Which Can Bounce Back In Some Days !

Cairn India CMP 262, SL 245, Tgt 308 ! Closed @ 267.80 !

Unitech CMP 26.25, SL 24, TGT 30.50--33 ! Closed @ 26.75 !

Andhra Bank CMP 124, SL 113, TGT 144 ! Closed @ 127.70 !

An optimistic assessment of the US economy from Federal Reserve Chairman Ben Bernanke on Friday, 26 August 2011, boosted stocks across the globe and Indian shares were no exception. The US is the world's biggest economy. The end of a standoff between the government and anti-corruption activist Anna Hazare during the weekend over anti-corruption bill, also aided the rally on the domestic bourses as the barometer index BSE Sensex regained the psychological 16,000 mark. The Sensex was provisionally up 600.08 points or 3.79%, off close to 15 points from the day's high and up close to 380 points from the day's low. The market snapped a three-day losing streak.

From the 30-share Sensex pack, 29 rose and only one fell. ONGC fell 1.08% and was the lone loser from the Sensex pack. Jaiprakash Associates, ICICI Bank and Larsen & Toubro surged by between 4.98% to 6.74%.

BSE clocked turnover of Rs 1833 crore, lower than Rs 2375.99 crore on Friday, 26 August 2011.

In Greece, trading in shares of EFG Eurobank Ergasias SA and Alpha Bank SA was suspended ahead of an expected merger announcement between the two Greek banks. The Athens Exchange said trading was temporarily suspended until the two "inform the investing community of the outcome of their board of director meetings, regarding their merger." Media reports over the weekend said the two banks were expected to announce a tie-up on Monday, 29 August 2011, that will form the biggest lender in southeast Europe.

Most Asian stock markets gained on Monday, 29 August 2011, following Friday's (26 August 2011) advance on Wall Street after Federal Reserve Chairman Ben Bernanke's speech encouraged buyers. Bernanke refrained from stating that the Federal Reserve would immediately introduce new measures to support the US economy, saying instead that options would be discussed at the Fed's next meeting in September 2011. The Fed holds a two-day meeting on 20 and 21 September 2011. The key benchmark indices in Hong Kong, Japan, Singapore, South Korea and Taiwan rose by between 0.61% to 2.84%.

Chinese banks led mainland Chinese stocks lower as concerns about monetary tightening returned on reports the People's Bank of China has announced new measures that would in effect increase the amount they must set aside as reserves. The China's Shanghai Composite was down 1.37%.

Trading in US index futures indicated that the Dow could gain 86 points at the opening bell on Monday, 29 August 2011.

The main event this week is the US employment report for August 2011 due on Friday, 2 September 2011. Economists expect non-farm payrolls to rise by a paltry 46,000 after a less-than-impressive 117,000 rise in July 2011. The unemployment rate is forecast to remain unchanged at 9.1%. The US market remains closed on Monday, 5 September 2011, for the Labour Day holiday.

August (2011) : 
Open : 5527.50
High : 5551.90
Low : 4720.00
Close: 4919.60
Avg. : 5179.75

Yearly (2011) : 
Open : 6177.45
High : 6181.05
Low : 4720.00
Close: 4919.60
Avg. : 5499.53

NIFTY FUTURE 

R5 : 5025
R4 : 4996
R3 : 4980
R2 : 4962
R1 : 4948

CMP: 4933.15

S1 : 4916
S2 : 4901
S3 : 4882
S4 : 4864
S5 : 4848

Market Updates : 

RBI releases draft rules for bank licences for corporates

The Reserve Bank of India released on its website today, the Draft Guidelines for "Licensing of New Banks in the Private Sector". The Reserve Bank has sought views/comments on the draft guidelines from banks, non-banking financial institutions, industrial houses, other institutions and the public at large.

Final guidelines will be issued and the process of inviting applications for setting up of new banks in the private sector will be initiated. After receiving feedback, comments and suggestions on the draft guidelines, and after certain vital amendments to Banking Regulation Act, 1949 are in place.

Bajaj Finserv leads gainers in 'A' group

IFCI, Reliance Capital, HCL Technologies and Indiabulls Financial Services are among the other gainers.

Shares of non-banking finance companies (NBFC) dominated the gainers in the BSE's 'A' group after the Reserve Bank of India (RBI) issued draft guidelines for new bank licences during trading hours today, 29 August 2011.

As per the RBI draft, the aggregate foreign shareholding in new banks shall not exceed 49% for the first 5 years. Private sector entities or groups owned and controlled by Indianpromoters, with diversified ownership and having a successful track record of at least 10 years, will be eligible to promote banks, said the RBI draft.

The draft also stated that the new bank should open at least 25% of its branches in unbanked rural centres. It also said that the new bank needs to get its shares listed on the stock exchanges within two years of licensing.

RBI said entities/groups having significant (10% or more) income or assets or both fromreal estate construction and/or broking activities individually or taken together in the last three years will not be eligible for the banking licence. Existing NBFCs, if consideredeligible, may be permitted to either promote a new bank or convert themselves into banks, RBI said.

Bajaj group-controlled NBFC Bajaj Finserv surged 14.42% to Rs 571.85. The stock topped the gainers in the BSE's 'A' group.

IFCI, which provides medium and long-term credit to industries in India, spurted 11.25% to Rs 39.05. The stock was second biggest gainer in 'A' group.

Anil Dhirubhai Ambani-controlled NBFC Reliance Capital galloped 9.72% to Rs 377.65. The stock was third biggest gainer in 'A' group.

Shares of another NBFC Indiabulls Financial Services spurted 7.78% to Rs 153.85. The stock was fifth biggest gainer in 'A' group.

Shares of IT firm HCL Technologies jumped 7.8% to Rs 390.55. The stock was fourth biggest gainer in 'A' group

Note : Data From Capital Market And Money Control !

Note : Kindly Trade With Stoploss !