Mid Market Session

The market is trading on cautious note, as RBI has increased the CRR by 50bps at 7.5% and left the repo and reverse repo unchanged. The morning trading session started with instant pick up but it took no time to settle down with the cautious feeling of the investors. The banking and auto sector is likely to feel the heat of the hike making the cost of funds costlier. The Mid cap is lower by 2.21 points at 8,080.33 and small cap fell by 10.89 points to 9,694.31.

The overall market breadth looks negative as 1123 stocks are advancing while 1475 stocks are declining on BSE.

At 12.30 pm, BSE Sensex is up by 48.45 points at 19,929.22, while Nifty was high by 17.15 points at 5923.05.

BSE Metal index is gaining by a striking 328.29 points at 17,518.03. Sterlite, Tata Steel and Jindal Steel are moving up by 7.53%, 1.23% and 2.59% at Rs. 1,030, Rs. 912 and Rs. 9,115 respectively. The prices of Nickel, Tin, Copper and Zinc have been rising in LME (London Metal Exchange) and NYME (New York Mercantile Exchange) because of phenomenal demand from industrial users.

BSE CG is gaining by 231 points at 20,078.66. This sector is driven by fundamental strength and one would find it very difficult to gauge the pricing of stocks. But the sector has a very bright future with a strong order book and congenial macro economic environment. L&T and BHEL are gaining by 1.46% at Rs. 4,340.05 and 3.0% at Rs. 2,690.35 respectively.

BSE Auto has lost 116.80 points at 5,539.63. MRF and Hindustan Motors are gaining 10% and 3.24% at Rs. 7,423.50 and Rs. 33.45 respectively. Maruti Suzuki is planning to invest $1.75 billion on R&D and marketing. The company during Q2FY08 recorded a healthy rise of 26.95% in net profit at Rs. 466.5cr over Rs. 367.44cr in the corresponding period of the previous year.