makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 14.03.2011MONDAY

WERE TODAYS SENSEX GAINERS

MARKET ENDED 14.03.2010 MONDAY

SENSEX 18439.48 +265.39

NIFTY 5531.50 +86.05

NASDAQ 2688.39 -27.22

S&P 500 1289.75 -14.53

UPDATEDTIME 09.28 PM 14 MARCH 2011

Sustained buying activity in index heavy-weight stocks following easing crude oil prices helped the benchmarks to close near day’s highs. All the sectoral indices ended in the green with oil&gas, metals and technology space.

Oil prices slipped below $99 per barrel on lowered demand due to earthquake and tsunami in Japan. Concerns of unrest in Saudi Arabia eased after the police managed to prevent pro-democracy protests Friday.

Indian markets moved higher after a correction in previous session. The market took in stride marginal rise in inflation and weak cues from Asian peers.

India’s Wholesale Price Index rose 8.3% higher in February than 8.2% growth seen in last month. The rise in Manufactured Products at 4.9% vs. 3.8% was the key reason for the higher-than-expected inflation data.

Going forward, the uptrend in manufactured non-food product inflation coupled with the impact of higher oil prices poses an upside risk to both our as well as official estimates for March inflation.

Looking ahead, given the structural element in high food prices, as well as upside risks arising due to oil, we expect inflation to come in 7%-7.5% range with an upward bias through 2011.

We maintain our view that the RBI will hike by an additional 50bps in 2011, with a 25bps hike likely in its review this Thursday, 17 March, and a further 50bps in 2012 .

Bombay Stock Exchange?s Sensex ended at 18439.48, up 265.39 points or 1.46 per cent. The 30-share index touched a low of 18155.43 and high of 18463.84 intraday.

National Stock Exchange?s Nifty ended at 5531.50, up 86.05 points or 1.58 per cent. The broader index touched a low of 5434.25 and high of 5537.30 in trade so far.

Technically, it seems that the market is into consolidation phase, with a lower top formation, which is an indication of "erratic" trading zone for the market. The level 5408 and 5525 may act as a trend decider levels for the market in the short term. Sustenance below the level 5408 may pull the market to 5300 levels and dismissal of 5525 may again lift the market to 5560 levels minimum.

There is no as such sector specific activity in the last week but the strongest sector "Banks" fails to perform as per expectations, which is an indication of more weakness if market remains weak.

On the other side due to earth quake in Japan (third largest user of Crude Oil) crude is cooling off that may support an emerging economies in the short term to medium term and that may minimize down side for the market.

BSE Midcap Index was up 0.49 per cent and BSE Smallcap Index edged 0.26 per cent higher.

All the sectoral indices ended in the green. BSE Oil&gas Index was up 2.24 per cent, BSE Metal Index gained 2.01 per cent and BSE IT Index gained 1.48 per cent.

Reliance Communications (4.36%), Tata Power (3.72%), Reliance Infrastructure (3.48%), Tata Steel (3.27%), Jaiprakash Associates (2.68%) and Reliance Industries (2.63%) were the top Sensex gainers.

Bharti Airtel (-0.40%), HUL (-0.16%), ONGC (-0.14%) and Hero Honda (-0.06%) were the only losers.

Shares of Reliance Capital surged 9.72 per cent higher after Nippon Life Insurance signed a definitive agreement to acquire 26 per cent stake in Reliance Life Insurance . Nippon Life Insurance will invest aggregate Rs 3062 crores to acquire 26 per cent strategic stake in Reliance Life Insurance.

Market breadth was positive on the BSE with 1520 advances against 1327 declines.