FIRST ORDER 25%

We recommend

Tuesday, April 17, 2012

Tobacco-to-hotels major ITC emerged as the most influential stock on the benchmark Sensex on Tuesday


MUMBAI: Tobacco-to-hotels major ITC emerged as the most influential stock on the benchmark Sensex on Tuesday, for the first time ever, after it overtook Reliance Industries in terms of weightage. Reliance slipped to second position, while Infosys Technologies dropped to the third spot after the sharp fall in its shares following the company's poor results.

On Tuesday, ITC's weightage on the Sensex rose to 9.25% compared to Reliance's weightage of 9.23% and Infosys' weightage of 7.98%. Sensex weightage, which is measured by the market value of a company's free-float or non-promoter shares that can be freely traded in the market

"ITC will be able to retain its top position as both Reliance and Infosys are not as fast-moving," said Bharat Shah, head of institutional sales at Ventura Securities.

"ITC is a widely held stock and is present in the portfolios of most institutional investors. These two stocks are also commanding lower price-earnings multiples these days. Being an FMCG, ITC will be in good demand; this will keep the prices up," he said.

ITC shares rose 2.1% to 246.15 on Tuesday, while Reliance Industries ended 0.3% lower at 746.40 amid worries the company's fourth quarter earnings could disappoint. Infosys shares have dived 15% since Friday when the company announced its fourth quarter results.

Benchmark indices ended firm in a choppy session on Tuesday after the Reserve Bank of India's surprised the market with a higher-than-expected cut in repo rate by 50 basis points. The Sensex ended 206.99 or 1.21% higher at 17150.95 while Nifty gained 63.50 or 1.22% to 5289.70.

Foreign institutions net bought shares worth 441 crore on Tuesday, while domestic institutions net sold shares worth 213 crore, according to provisional BSE data.

"Further upside will depend on the Q4 results outcome and the global markets. Spain will be issuing 10 year bond next week, the outcome could influence the short term trend of the market" said Mehul Dedhia, associate vice-president - Equity at Sharekhan.

0 comments:

 

blogger templates | Make Money Online