makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 26.07.2010 MONDAY

Monday, July 26, 2010

MARKET ENDED 26.07.2010 MONDAY

WERE TODAY S GAINERS

MARKET ENDED 26.07.2010 MONDAY

SENSEX 18020.05 -110.93

NIFTY 5418.60 -30.50

NASDAQ 2269.47 +23.58

DJIA 10424.62 +102.32

RS/$ 47.00 -00.33

Indian equities ended in the negative territory Monday as investors booked profits in rate sensitive sectors ahead of Reserve Bank of India’s policy review meet. Traders also churned portfolio ahead of July series expiry.
Markets opened in the red and turned rangebound even as Asian peers moved higher post European banks stress test. Back home there are concerns that RBI will continue to tighten liquidity to keep inflation in check.
The growth momentum in the Indian economy looks well-entrenched, with IIP growth at a healthy 11.5% yoy in May 2010 and credit growth zooming to 21.7% yoy in July 2010. At the same time, continuing food inflation (12.6% yoy) has taken the overall WPI to double digits (10.6% yoy).
To this end, looking at the level of headline inflation, which is well above the RBI's target of 5.5%, as well as strong uptick in credit growth in the last few months, we believe that the RBI would find it prudent to continue the process of gradual domestic monetary tightening.
Accordingly, we expect the RBI to hike repo and reverse repo rates by 25bp each to 5.75% and 4.25%, respectively. However, considering the current liquidity situation, we do not expect a CRR hike in the coming policy.
Bombay Stock Exchange’s Sensex ended at 18020.05, down 110.93 points or 0.61 per cent. The index touched a low of 17993.88 and high of 18194.09.
National Stock Exchange’s Nifty closed at 5414.30, down 30.50 points or 0.56 per cent. It hit a low of 5409.20 and high of 5466.25.
BSE Midcap Index was down 0.96 per cent and BSE Smallcap Index moved 0.81 per cent lower.
Amongst the sectoral indices, BSE Auto Index fell 3.25 per cent, BSE Realty Index slipped 2.13 per cent and BSE Bankex was down 0.79 per cent. BSE IT Index moved 0.59 per cent higher.

Maruti Suzuki (-12.31%), Hero Honda (-7.46%), Jaiprakash Associates (-5.75%), SBI (-3.44%) and DLF (-2.89%) were the major Sensex losers.
Shares of Maruti Suzuki were under pressure after the company reported fall in net profit. The company’s standalone net profit fell to Rs 465.36 crore for the quarter ended June against Rs 583.54 crore in the same quarter a year ago. Net sales rose to Rs 8050.67 crore as compared to Rs 6364.71 crore.
Bharti Airtel (2.12%), TCS (0.96%), Infosys (0.74%), HDFC Bank (0.64%) and ITC (0.53%) were amongst the top gainers.
Market breadth was negative on the BSE with 1824 declines against 1090 advances.
Regards,