Morning Brief (01Aug; 2011)

Sensex spurts 200 points on US debt deal approval

The first day of a brand new month saw a spectacular start to trade with the Sensex shooting up 200 points. The rally was mainly on the back of positive global cues coming from the US.

Laying out the endgame in the US debt crisis just two days before a deadline to lift the borrowing limit, the White House and congressional leaders said the compromise would cut about USD 2.5 trillion from the deficit over the next 10 years.

The Indian market has snapped four-day losing streak today. At 9:18 hours IST, the 30-share BSE Sensex gained 221 points to 18,418 and the 50-share NSE Nifty went up 65 points to 5,547.

Heavyweights Reliance Industries and ONGC were leading the market, with rising over 1%.

Among other largecaps, Jaiprakash Associates, DLF, Axis Bank, ICICI Bank, HDFC Bank, Reliance Comm, Reliance Capital, Bharti Aitel, SBI, Tata Steel, IDFC, L&T, Maruti Suzuki and Tata Motors were on buyers' radar.

However, SAIL, JSPL and Siemens were only losers on Nifty.

The CNX Midcap went up 95 points to 8,112.

Market breadth too was positive; about 768 shares advanced against 243 shares declined on National Stock Exchange.

JSW Steel plunged over 9% on huge volumes post.

Adani Enterprises shot up 9% after the company said it did not own or operate any iron ore mine in India. Adani Power too gained 6% and Mundra Port was up 4%.

TVS Motor rallied 7.5% post strong quarterly numbers. Mcleod Russel was up 2% and Eicher Motor up 3%.

Mphasis is going to acquire US-based Wyde; the stock went up 1%.

GTL was up 5% as ICICI Bank became a key shareholder in the company after taking 29.3% stake in the company. GTL Infra rose 4%.

Cox & Kings, Dena Bank and Vijaya Bank were up 2%.

However, India Infoline plunged 3% on disappointing Q1 numbers.