Examples of Share Market reports for commerce students

1. Example No. (01)
Sensex drops on inflation
Newswire 18
9 February
The Sensex retreated (fell) from a record high, as the country’s high
inflation from first week to January27 jumped to 6.58 per cent, higher
than 6.48 per cent market estimate.
Investors booked profit due to lack of triggers amid concerns over
stretched valuations, dealers said. Indices (index) ignored strong Asian
markets, which have risen today led by banks, as brokerages upgraded
ratings on the sector.
The sensex ended at 14,538.90 points or o.8 percent, after touching a
lifetime high of 14,723.88 early in the session.The Nifty provisionally
ended at 4,178.55, down 44.85 point or 1.1 percent. Key indices lost
further ground after wholesale price index inflation data were
announced mid-day. The data surpassedthe Reserve Bank of India’s
target of 5.0-5.5 percent for 2006-2007.
It is also the highest inflation since December 11, 2004. The worst hit on
the Nifty were Mahanagar Telephone Nigam, down 3.9 percent at Rs.
158, Satyam Computer Services, down 3.5 percent at Rs. 469 and ACC
down 3 percent at Rs 1,035. Despite strong subscriber (sure investors)
additions announced today, telecommunication shares declined, as
investors booked profits after the run-up in the sector previous week.

2. The biggest Nifty gainers were Zee Tele films, up 5.4 percent at Rs. 361,
oriental Bank of Commerce, up Rs. 232, and Bajaj Auto, up 1.7 percent
at Rs. 3,061.
The combined turnover on both exchanges was Rs. 13,600 crore, up 7
percent from Thursday. The CNX Midcap Index was down 2.2 percent
and S & P CNX 500 Index was down 1.1 percent. Cement shares were
big laggards (drag & fell behind) today.
Gujarat Ambuja Cement ended down 2.1 percent at Rs. 139, and Grasim
Industries was down 0.4 percent at Rs. 2,842.
Rating agency Fitch said in a release it expected cement prices to start
softening from the second half of 2007, driven by capacity additions,
which are expected to go on stream during financial years 2007-2008
and 2008-2009. Shares of sugar companies were down due to concern
that global sugar prices may weaken further following higher output
from India and Thailand and capacity expansions in Brazil, the world’s
biggest producer.
 QUESTIONS:
1. Explain the title of the given share market report.
2. To which factor the downward trend in the share market could be
attributed (caused)?
3. Which factor was ignored by the Indian markets ?
4. What was the forecast made by rating agency Fitch regarding
cement prices ?
5. Explain the following terms :
(1) Sensex (2) Profit booking

3.  ANSWERS:
1. Title of the share market report reflacts the downward trend in
the share market was on account of inflation.
2. The downward trend in the share market could be attributed to
higher than expected rate of inflation for the week ended on
January 27.
3. The Indian marketsignored the strong position of Asian markets.
4. According to the rating agency Fitch the cement prices would
start softening from the second half of 2007 due to capacity
additions by cement companies.
5. (a) Sensex:
It refersto a statistical measure of the prices of 30 selected
stocks traded on the Bombay Stock Exchange. It is also known as
BSE 30, benchmark or sensex index.
(b) Profit booking:
It is an act of converting unrealized gains into profit by selling
securities whose prices have risen considerablyin a short period.

4. Example No.(02)
Global cues (signals) pull Sensex up
136 points
AGENCIES Mumbai,
2 February
The Bombay Stock Exchange's benchmarkSensex and the broad
bases S & P CNX Nifty today scaled new heights as the stock market
extended gains for the second straight day on the back of strong global
cues, setting aside worries over rising inflation.
Driven higher by sector specific activity, the bellwether (leader)
Sensex touched a new intra-day high of 14,462.77. It later ended the
day at an all-time high of 14,403.77, up 136.59 points or 0.96 per cent
over yesterday's close of 14,267.18.
Similarly, the National Stock Exchange's (NSE) Nifty scaled a new
trading peak of 4,198.70 and closed at a record high of 4,183.50,
recording a rise of 46.30 points or 1.12 per cent over the last close of
4,137.20.
The market sentiment was enlivened (brighter) by good buying
support from operators and fresh buying by foreign institutional

5. investors in selected counters (particular types of shares) like L & T,
BHEl, Bharati Airtel, Reliance Communications,HDFC, Wipro, Satyam
Computer, ACC, GACL and Grasim, brokerssaid.
Despite concerns overstretched valuations and high inflation
pressure, investors seemed to be encouraged by record net profits
earned by a majority of corporates in the third quarter of this fiscal
(financial). Major companies have mostly reported robust growth in
December quarter earnings, and the central bank raised its 2006/07
economic growth forecast this week 8.5-9.0 per cent from 8 per cent.
"The market is clearly being driven by fundamental developments
and easy global liquidity – profit growth has been fantastic", said Jigar
Shah, director at K R Choksey Shares and Securities. "It looks like the
momentum will continue."
 QUESTIONS:
(1) Explain the title of the given share market report.
(2) Arrange the movements of the Sensex in a table format.
(3) How many points were gained by Nifty?
(4) Which scripts were in demand on the BSE?
(5) Explain the following terms: (i) Bellwether (ii) Counter

6.  Answers :
(1) The title of the given share market report reflects upward trend in
the share market. The share market was encouraged by positive
global signals.
(2)
Previous
Day
Closing
Today's
Opening
Today's
High
Today's
Low
Today's
Closing
Difference
14267.18 - 14462.77 - 14403.77 +136.59
(3) Nifty gained 46.30 points on the given day.
(4) Scripts like L & T, BHEL, Bharti Airtel, Reliance Communications,
HDFC, Wipro, Satyam Computers, ACC, GACL and Grasim were in
demand.
(5) (i) Bellwether :
Bellwether literally means a sheep that leads the herd, often
bearing a bell ; hence a share which assumesa position of
leadership.e.g. Infosys Tech. – I.T. Bellwether, Ranbaxy –
Pharmaceutical Bellwether
(ii) Counter:
A particular type of share e.g. I.T. counters, Pharmaceutical
counters.

7. Example No. (03)
Markets surge to record high
BS REPORTER
Mumbai, 7 February
The pre-Budget rally seems to have gathered steam with the
bellwether stock indices, the Sensex and the Nifty-50, closing at record
highs. The sentiment was bullish after the government forecast of
higher economic growth. This coupled with big short-covering in
derivatives segment and renewed buying by foreign funds, ahead of the
Budget this month-end, propelled the markets to a new record closing
on Wednesday.
The Sensex made its all-time high closing at 14,643.13, up 164.9
(1.14 per cent), while the Nifty-50 made a new markat 4,224.25 (up
28.35 or 0.63 per cent) from yesterday.
"It seems the markets continue the rally till the second week of
March. But, we see a big correction by the March 12-period", said Alex
Mathews, head of research at Georjit Financial Services. He said the
rally was forcingforeign funds, who were hedging in the derivatives

8. segment, to either cut their short position or were forced to take long
position.
If the market rallies, further, there could be a drastic fall in April,
similar to the last May-fall, which wiped off 30 per cent of the valuation
in a matter of weeks, coutioned Mathews.
Bajaj Auto was the biggest gainer on the Sensex, gaining by 9.02
per cent to Rs. 3,080.30, on buzz of the much-anticipated value-
unlocking through demerger of its finance arm. Hindalco, which fell in
recent days due to the drop in global metal prices, rebounded by 4.36
per cent to Rs. 181.90. The other big gainers were Infosys (up 3.82 per
cent to Rs. 2,358.75) and Grasim (up 2.93 per cent to Rs. 2.874.60), ICICI
Bank, which hiked its home loans and other lending rates, rose by 2.61
per cent to Rs. 982.35.
"The markets are expecting some positive news for the agro-
sector. Companies that have exposure in this sector are expected to do
well", said another analyst with a local brokerage house. Despite the
gains today, the overall breadth of the market was slightly negative
with 49.19 per cent of the BSE stocks ending in positive territory.
The market sentiment was bullish after the Central Statistical
Organization forecast the domestic economy to grow by 9.2 per cent.

9.  QUESTIONS:
(1) Explain the title of the given share market report.
(2) To which factors the rally on the BSE could be attributed ?
(3) Which speculative factor enabled Bajaj Auto to gain considerably
on the BSE ?
(4) What was the forecast made by Alex Mathews regardingmarket
situation of the month of March ?
(5) Explain the Following terms: (i) Short covering (ii) Hedging
 ANSWERS:
(1) The title of the given share market report reflects upward trend of
the market.The title suggests that the indices reached a record
high position on different markets.
(2) The rally in the market could be attributed to factors like the
government's forecast of high economic growth, short covering in
derivatives segment and fresh buying by foreign funds.
(3) Bajaj Auto gained considerably on the BSE followingthe
speculation in the market regarding demerger of its financial arm.
(4) According to Alex Mathews the present rally would continue till
the second week of March, but by March 12 there would be a big
correction in the market.

10. (5) (i) Short Covering : It refers to the process of somebody
borrowingor buying shares, bonds etc. in order to replace the
ones that they have sold or agreed to sell but did not own.
(ii) Hedging : It is a strategy to protect one's self against the risk
of losing money in the future because of changes in the value
of shares, currencies etc. Hedging literally means reducing
exposure to risk.Hedging is a feature of the commodities and
currency markets where prices are likely to fluctuate.

11. Example No. 04
Sensex Plunges below 13K
Mumbai
The markets continued to reel under persistent selling pressure
which on Tuesday showed nearly 500 points off benchmark Sensex
sending the barometer below 13K level for the first time since April 5,
2007 and strengthened widespread anticipation that it could touch 12K
level soon.
Trackingextremely weak European markets, the Sensex closed the
day at 12,961.68 a fall of 499.92 points, or 3.17 percent.
Similarly, 50-shares S and P CNX Nifty of the National Stock
Exchange also ended below the psychological 4,000 level at nearly a 15-
Month low of 3,896.75 netting a loss of 143.80 points or 3.56 percent.
Under relentless selling pressure of the past three days the BSE
barometer had lost a whopping 1,460.14 points or 10.12 percent.
Market men said investor sentiment was already dampened by a
lethal combination of inflation, higher interest rates and crude prices.
Brokers said investor's worries were augmented on Tuesday as the
European markets tumbled by 1.3 percent to 2.4 percent in their early
trade.
They said surging global crude oil prices, which were trading above
$ 141 per barrel in Asian trade after hitting a new record at $ 143.67 in
the preceding session, also another major concern for the market.

12.  QUESTIONS:
(1) Explain the title in simple English.
(2) Describe the condition of fall in the Stock Exchanges.
(3) What did the market men say for the fall?
(4) What did the broker say for the trend?
(5) What is the meaning of 13K and 12K?
 ANSWERS:
(1) Title reflects downward movement of the Sensex. The title also
suggests that the Sensex dipped below a particular level, i.e.
13,000 mark.
(2) There was a constant downward trend on account of persistent
selling pressure in the markets.Moreover weak European markets
discouraged the sentiment of markets.
(3) The market men were of the opinion that the investor sentiment
was dampened by factors like inflation, higher interest rates and
crude prices.
(4) The brokers opined that the downward trend would continue for
sometime on account of surging global crude oil prices and weak
European markets.

13. (5) In the given market report 13K and 12K mean 13,000 and 12,000
respectively. They refer to particular level of the Sensex on the
B.S.E.