BSE TOP GAINERS
SENSEX 16357.96 +51.09
NIFTY 4882.05 +14.80
NASDAQ 2179.00 -42.41
DJIA 10120.46 -115.70
RS/$ 46.31 -0.02
Indian markets pulled back to end in the positive terrain on Friday led by short covering in banks and realty space. Upward projection of GDP by the Reserve Bank of India in its third quarter monetary policy review and positive European markets also boosted sentiments. Indices opened lower in line with other global markets and moved down further ahead of RBI’s policy review. The market corrected in a knee-jerk reaction to RBI’s move to hike the Cash Reserve Ratio by more than street estimates but later pared losses and pulled back smartly. The RBI hiked CRR by 75 basis points against street consensus of 50 bps. It left the repo rate and reverse repo rates unchanged. The CRR hike, which will suck out Rs 36,000 crore from the system, will be done in two phases. The first CRR hike of 50 bps will be from February 13 and second of 25 bps from February 27. RBI also projected GDP growth for financial year 2009-10 at 7.5 per cent from 6 per cent last year. It also said the inflation would be around 8.5 per cent in March. We think unchanged policy rates are a ‘timing’ issue as the RBI has simultaneously raised its FY10 GDP estimate to 7.5% (from 6%), its March-2010 inflation estimate to 8.5% (from 6.5%), as well as stating that inflation expectations are on the rise. We maintain our view that the RBI will hike by at least 125bps this year with a high probability of an ‘inter-policy’ move post the budget.
NIFTY 4882.05 +14.80
NASDAQ 2179.00 -42.41
DJIA 10120.46 -115.70
RS/$ 46.31 -0.02
Indian markets pulled back to end in the positive terrain on Friday led by short covering in banks and realty space. Upward projection of GDP by the Reserve Bank of India in its third quarter monetary policy review and positive European markets also boosted sentiments. Indices opened lower in line with other global markets and moved down further ahead of RBI’s policy review. The market corrected in a knee-jerk reaction to RBI’s move to hike the Cash Reserve Ratio by more than street estimates but later pared losses and pulled back smartly. The RBI hiked CRR by 75 basis points against street consensus of 50 bps. It left the repo rate and reverse repo rates unchanged. The CRR hike, which will suck out Rs 36,000 crore from the system, will be done in two phases. The first CRR hike of 50 bps will be from February 13 and second of 25 bps from February 27. RBI also projected GDP growth for financial year 2009-10 at 7.5 per cent from 6 per cent last year. It also said the inflation would be around 8.5 per cent in March. We think unchanged policy rates are a ‘timing’ issue as the RBI has simultaneously raised its FY10 GDP estimate to 7.5% (from 6%), its March-2010 inflation estimate to 8.5% (from 6.5%), as well as stating that inflation expectations are on the rise. We maintain our view that the RBI will hike by at least 125bps this year with a high probability of an ‘inter-policy’ move post the budget.
Bombay Stock Exchange’s Sensex closed at 16357.96, up 51.09 points or 0.31 per cent. The index touched an intraday low of 15982.08 and high of 16390.31.
National Stock Exchange’s Nifty ended at 4882.05, up 14.80points or 0.30 per cent.
The 50-share index hit a low of 4766 and high of 4893.70 in today’s trade. BSE Midcap Index was up 1.01 per cent and BSE Smallcap Index moved 1.20 per cent higher. Banks and realty stocks gained momentum following the Reserve Bank of India’s move to hike credit reserve ratio by 75 basis points. The central bank has left the key interest rates unchanged. Amongst the sectoral indices, BSE Bankex was up 2.99 per cent, BSE Realty Index was up 2.60 per cent and BSE Capital Goods Index moved 1.26 per cent higher. ICICI Bank (5.29%), BHEL (3.10%), SBI (2.72%), DLF (2.54%) and HDFC Bank (2.25%) were the top Sensex gainers. Hindustan Unilever (-4.44%), Wipro (-3.80%), Tata Motors (-2.92%), Tata Steel (-2.83%) and Bharti Airtel (-2.40%) led the Sensex decline. Market breadth turned positive on the BSE with 1471 gainers against 1354 losers.
Regards,
RAKESH MAKIN
Chugh securities Pvt Ltd
+91 9915684997,9041667797(DIRECT)
OFF 0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
Email:rakeshmakin@yahoo.com
Blog :http://wwwmakin97-nse.blogspot.com/
Home page: http://in.groups.yahoo.com/group/makin97NSEtipsGroup mail id: makin97NSEtips@yahoogroups.co.in
Regards,
RAKESH MAKIN
Chugh securities Pvt Ltd
+91 9915684997,9041667797(DIRECT)
OFF 0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
Email:rakeshmakin@yahoo.com
Blog :http://wwwmakin97-nse.blogspot.com/
Home page: http://in.groups.yahoo.com/group/makin97NSEtipsGroup mail id: makin97NSEtips@yahoogroups.co.in
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