makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 31.08.2010 TUESDAY

Tuesday, August 31, 2010

MARKET ENDED 31.08.2010 TUESDAY

WERE NIFTY GAINERS

MARKET ENDED 31.08.2010 TUESDAY

SENSEX 17971.12 -60.99

NIFTY 5402.40 -13.05

NASDAQ 2141.54 +17.78

DJIA 10060.06 +19.61

RS/$ 46.79 -00.14

Indian equities recovered from intraday lows and ended with modest losses on Tuesday, even as the European markets dragged on concerns of global economic recovery.
Indices opened in the negative terrain tracking weak Asian markets and remained subdued as investors awaited India’s GDP data for June quarter.
India's economy grew 8.8 per cent year-on-year in the June quarter, the strongest performance in more than two years, powered by robust manufacturing growth.
The growth was in line with expectations but the market reacted negatively amidst weak global cues and slipped below crucial support levels.
As for the growth trajectory going forward, we take note that some modest headwinds have emerged. First, industrial production growth has slowed after a sharp cyclical rebound, as have exports due to a slowing in industrial country demand.
Government spending is unlikely to support the economy in the same magnitude as in the past year, when a large stimulus was in place (this will impact the community and social services component of national accounts

Countering the negatives, lower inflation and a better monsoon would support the economy. We therefore expect a marginal slowdown in the present and forthcoming quarters and maintain our real GDP forecast for FY10/11 at 8%.
However, buying in the last one-hour of trade helped the benchmarks to pull back from support zones and end marginally lower.

National Stock Exchange’s Nifty ended at 5402.40, down 13.05 points or 0.33 per cent. The broader index touched intraday low of 5348.90 and high of 5413.90.

Bombay Stock Exchange’s Sensex ended at 17,971.12, down 60.99 points or 0.20 per cent. The index touched a high of 18,015.66 and low of 17,819.99 in today’s trade.

The BSE Midcap Index was down 0.58 per cent and BSE Smallcap Index moved 1 per cent lower.
Amongst sectors, BSE Oil&Gas Index was down 1.95 per cent, BSE Realty Index moved 1.71 per cent lower and BSE Metal Index slipped 1 per cent. BSE FMCG Index was up 1.58 per cent.

M&M (2.85%), Ambuja Cements (2.62%), ITC (2.42%), Tata Motors (2.07%) and Ranbaxy Laboratories (1.93%) led the Nifty gainers.

Jaiprakash Associates (-3.54%), Reliance Communications (-3.37%), Reliance Industries (-3.03%), HCL Tech (-2.73%) and Jindal Steel (-2.42%) were the major Sensex losers.
Reliance Industries, the most-weighted stock on the index, led the decline by falling over 3 per cent after it bought 14.12 per cent stake in EIH for Rs 1021 crore. The stake-sale by Oberoi promoters is seen as a move to keep ITC away from a possible takeover.
Market breadth was negative on the NSE with 2179 declines against 1078 advances.
European markets were witnessing profit booking and the Wall Street is also expected to open in the red. At 4:05 pm IST, Dow Jones futures was down 0.29 per cent, S&P 500 slipped 0.27 per cent and Nasdaq declined 0.38 per cent.