MARKET COMMENTARY FOR THE DAY 30 JUNE 2010

Bulls and bears are running helter skelter across global markets –at the time of writing this commentary the Dow is trading at 9876.88, up by 6.58/+0.07 per cent.. The Nikkei 225 was down by 188.03/ -1.06 per cent, Hang Seng was down by 119.91/-0.509 per cent, FTSE 100 was down by 2.65/-0.05 per cent and the DAX rose 13.49/0.23 per cent. Shanghai Composite Index dived 1.18 % [ 5.48 percent since last two days ] and the reason for the continuin slide is due to concerns that economists may reduce their growth forecasts for the nation because of policy tightening measures and the Europe debt crisis. “We’re beginning to see recession signals in China,” Jim Walker, Managing Director at Asianomics Ltd., said on Bloomberg Television from Singapore.

The Sensex closed at 17700.90, up by 166.81 points and the Nifty rested at 5312.50 up by 56.35 points. The top three gainers were BPCL, IDFC, and Idea which gained 4.33 per cent, 3.97 per cent and 3.58 per cent respectively. The top three losers e Wipro, GAIL and Bhararti Airtel which shed 1.32 per cent, 1.19 per cent and 1.13 per cent respectively. The market breadth as reflected by Nifty advances and declines was pretty positive and stood at 43 : 7.

Metals declined for the first time in four sessions on the London Metal Exchange, led by a 4.8 percent drop in zinc and 5.3 percent plunge in lead. Copper fell 3.8 percent, extending its decline this year to 10 percent. Gold slipped 0.2 percent to $1,236.78 an ounce, trimming this year’s gain to less than 13 percent. Oil for August delivery slumped 3.2 percent to $75.78 a barrel on the New York Mercantile Exchange.

In corporate news, Aegis Logistics to consider bonus issue Board meeting on 07 July 2010 The board meeting of Aegis Logistics will be held on 07 July 2010 to consider the proposal for issue of bonus shares.

Bajaj Holdings & Investment to announce Q1 results Board meeting on 22 July 2010 The board meeting of Bajaj Holdings & Investment will be held on 22 July 2010 to consider the unaudited financial results for the first quarter ended 30 June 2010 (Q1).

Some good news to cheer up Dalal Street tomorrow. India’s export grew 36.2% while imports increased 43% in Q4FY10 compared to the corresponding quarter last fiscal, reports CNBC-TV18.

Kishor S. Khot, [Kishor@hbjcapital.com], Equity Strategist, HBJ Capital Services Pvt Ltd