makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 16.03.2011 WEDNESDAY

Wednesday, March 16, 2011

MARKET ENDED 16.03.2011 WEDNESDAY

WERE TODAYS SENSEX GAINERS

MARKET ENDED 16.03.2010 WEDNESDAY

SENSEX 18358.69 +191.05

NIFTY 5511.15 +61.50

NASDAQ 2649.41 -17.92

S&P 500 1272.58 -09.29

NIKKEI 9093.72 +488.58

UPDATEDTIME 09.28 PM 16 MARCH 2011

Indian markets bounced back and closed near psychological resistance levels taking cues from other Asian peers. Rate sensitive sectors led the rally ahead of the Reserve Bank of India's policy review meet. According to experts, in order to curb inflation, the central bank may hike rates by 25 bps.

Repo rate at 6.5% is lower than average inflation expected in FY12 of 7.5-8% by 100-150bps hence RBI's rate hike could be in the range of 50-100bps during FY 2012 depending on the inflation numbers going forward.

Credit demand remains strong (23.0% YoY as on 25-Feb-11), however IIP numbers have just started recovering (3.7% YoY growth in Jan'11) hence RBI will not like to be over aggressive and hence market is unanimously factoring in 25bps rate hike.

Consequently, a 50bps hike tomorrow could have a negative knee jerk reaction to the markets.

Bombay Stock Exchange's Sensex closed at 18358.69, up 191.05 points or 1.05 per cent. The 30-share index hit a high of 18444.47 and low of 18263.68 intraday.

National Stock Exchange's Nifty ended at 5511.15, up 61.50 points or 1.13 per cent. The index touched a high of 5535.10 and low of 5475.95 in trade today.

BSE Midcap Index was up 1.37 per cent and BSE Smallcap Index moved 1.26 per cent higher.

Amongst the sectoral indices, BSE Realty Index gained 2.47 per cent, BSE Bankex moved 2.15 per cent higher and BSE Auto Index was up 1.41 per cent.

Reliance Infrastructure (5.17%), SBI (3.10%), ICICI Bank(3.03%), DLF (2.44%) and TCS (2.36%) were the major Sensex gainers.

Hindustan Unilever (-1.15%), Hindalco (-0.56%), Cipla (-0.52%), Hero Honda (-0.22%) and HDFC (-0.08%) were the top losers.

Market breadth was positive on the BSE with 1808 advances against 1063 declines.

Meanwhile European markets were witnessing profit booking as concerns of spread of harmful radiation in Japan loomed over. The Wall Street is also likely to open lower suggests stock futures.

At 4:50 pm IST , Dow Jones futures was down 0.24 per cent, S&P 500 slipped 0.26 per cent and Nasdaq declined 0.04 per cent.