WERE TODAYS GAINERS
MARKET ENDED 12.10.2010 TUESDAY
SENSEX 20203.34 -136.55
NIFTY 6090.90 -44.95
NASDAQ 2141.54 +17.78
S&P 500 1165.32 +00.17
| HANG SENG 23131.89 -75.42 FTSE 5672.40 +14.79 DJIA 10060.06 +19.61 |
Equities ended on a weak note Tuesday as investors pressed sales after lower-than-expected IIP data and negative cues from European markets spooked sentiments. India’s Index of Industrial Production for August grew at 5.6% (YoY) as compared to 10.6% in the year-ago period. The decline was led by capital goods space as the sector contracted by 2.6 per cent in August, in comparison to 9.2 per cent growth in the year-ago period.
The August reading of IP suggests that the big July spike was a blip in the volatile data. It provides another pointer that domestic demand is not accelerating, although a host of other indicators such as auto sales suggest demand remains robust. A better-than-expected monsoon will help sustain demand. Our forecast for FY11 GDP growth is at 8.5% driven by a strong agricultural crop.
We continue to expect the Reserve Bank of India (RBI) to hike both the reverse repo and repo rates by 25 bp on November 2. We think the low IP print should not dissuade the RBI from its primary objective of dealing with high and persistent inflation, elevated inflationary expectations and rising asset prices.
RBI can hike policy rates by another 75-100 bps by end-June 2011. WPI inflation numbers for September will be released on October 14, and we expect it to remain elevated at 8.6% yoy
National Stock Exchange’s Nifty ended at 6,090.90, down 44.95 points or 0.73 per cent. The broader index touched a high of 6,144.95 and low of 6,057.95 in today’s trade.
Bombay Stock Exchange’s Sensex closed at 20,203.34, down 136.55 points or 0.67 per cent. The 30-share index touched intraday high of 20,368.40 and low of 20,107.25.
Market is likely to remain sideways between 6050-6080 for next 2-3 days. We recommend traders to buy Nifty 6300 call for November. Stock wise strength is seen in pharma stocks like Sun Pharma and Glaxosmithkline.
BSE Midcap Index was down 0.51 per cent while BSE Smallcap Index ended on a flat note. Amongst the sectoral indices, BSE Realty Index fell 1.80 per cent, BSE Capital Goods Index slipped 1.58 per cent and BSE Metals Index was down 1.43 per cent.
DLF (-2.07%), Hindalco (-2.05%), Jindal Steel (-1.97%), L&T (-1.94%) and Jaiprakash Associates (-1.93%) led the Sensex decline.
M&M (1.31%), Reliance Communications (1.06%), TCS (0.89%), ICICI Ban (0.65%) and Tata Motors (0.61%) were amongst the gainers.
Market breadth was negative on the BSE with 1796 declines as compared to 1155 advances.
New listing Cantabil Retail India closed 22.63 per cent lower at Rs 104.45 against issue price of Rs 135 on the NSE. The stock hit intraday high of Rs 125.90 and low of Rs 101.10. Cantabil retails apparels under the brands CANTABIL and La FANSO. The company has a network of 411 retail outlets across India. The company raised Rs 105 crore via the IPO.
Techpro Systems had a stellar listing on the bourses. The stock ended at Rs 401.80, up 13.18 per cent against issue price of Rs 355 on the NSE. It touched intraday high of Rs 453.80 and low of Rs 380. The company provides turnkey solutions in material handling, ash handling, balance of plant and engineering, procurement and construction contracts. The company raised Rs 268 crore, which it plans to use for working capital requirements.
Elsewhere, the European markets were in the negative terrain and the US stock futures suggested a weak opening. At 5:10 pm IST, Dow Jones futures was down 0.47 per cent, S&P 500 slipped 0.59 per cent and Nasdaq declined 0.48 per cent lower.
Regards
RAKESH MAKIN
+91 9915684997, 9041667797(DIRECT)
OFF 0172-4657997
PANCHKULA (Haryana).
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