makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 15.05.2011 THURSDAY

WERE TODAY'S GAINERS

MARKET ENDED 12.05.2010 THURSDAY

SENSEX 18335.79 -249.17

NIFTY 5486.15 -78.90

NASDAQ 2838.58 -06.48

UPDATEDTIME 09.28 PM 12 MAY 2011

Indian markets ended in the negative territory as cautious investors offloaded positions on concerns that interest rate hike would impact earnings growth. The worst hit were commodities on worries that slower economic growth would result in less demand for base metals.

The market shrugged off better-than-expected March IIP data which rose to 7.3 per cent against 3.6 per cent in February. According to analysts, the IIP numbers are likely to remain volatile in near future.

After four months of subdued performance, IIP growth bounced back to 7.3% in March 2011. In the four months prior to this, IIP growth had averaged at 3.5%. The bounce back in IIP was led by double digit growth in capital goods sector which grew by 12.9%. Compared to this, it de-grew by (-) 18.2% in Feb 2011.

Our sensitivity analysis shows that if capital goods had contracted by 10%, IIP growth would have averaged at Feb 2011 levels. Other than capital goods, growth in all other sectors by use based classification was lower than Feb 2011. This shows that IIP growth will continue to remain weak and volatile depending upon capital goods data.

Bombay Stock Exchange's Se NSE . closed at 18335.79, down 249.17 points or 1.34 per cent. The 30-share index hit a high of 18610.02 and low of 18314.34 intraday.

National Stock Exchange's Nifty ended at 5486.20, down 78.90 points or 1.42 per cent. The broader index touched a high of 5572.50 and low of 5476.30 in trade today.

Nifty is likely to find support around 5400 in the form of value buying. However, the trading range would still be 5400-5650. Low stock ownership and lesser leverage in the derivatives market would help the cause.

BSE Midcap Index was down 0.91 per cent and BSE Smallcap Index slipped 1.06 per cent.

Amongst the sectoral indices, BSE Metal Index was down 2.99 per cent, BSE Capital Goods Index declined 1.42 per cent and BSE Bankex moved 1.39 per cent lower. BSE Realty Index was up 0.48 per cent.

Hindalco (-4.47%), Sterlite Industries (-3.99%), Jaiprakash Associates (-2.59%), HDFC (-2.37%) and TCS (-2.13%) were the major Sensex losers.

ONGC (0.58%), HUL (0.52%) and DLF (0.18%) were the only index gainers.

Shares of newly listed Servalakshmi Paper had a volatile trade on debut. The stock after a flat listing surged to an intraday high of Rs 48.70, up 68 per cent on the NSE. However due to the bearish market sentiment, the scrip witnessed a sharp sell-off and it ended at Rs 18.20, down 37.24 per cent against issue price of Rs 29 per share.

Market breadth was negative on the BSE with 1848 losers against 943 gainers.

The European markets were also down in line with peers and the same was expected on the Wall Street. At 5:10 pm IST, Dow Jones futures was down 0.54 per cent, S&P 500 moved 0.59 per cent lower and Nasdaq declined 0.77 per cent.