makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 15.06.2011 WEDNESDAY

Wednesday, June 15, 2011

MARKET ENDED 15.06.2011 WEDNESDAY

WERE TODAY'S GAINERS

MARKET ENDED 15.06.2010 WEDNESDAY

SENSEX 18132.24 -176.42

NIFTY 5447.50 -53.00

NASDAQ 2645.46 -33.26

UPDATEDTIME 09.28 PM 15 JUNE 2011

Indian markets ended in the negative territory Wednesday as jittery investors booked profits ahead of the Reserve Bank of India's policy meet. The central bank is likely to raise interest rates by 25 basis points to rein in inflation which rose to 9.06 per cent in the month of May.

Moderation in growth and concerns of interest rates hike has caused the foreign institutional investors to turn sellers. FIIs have sold equities worth over Rs 960 crores in the last three sessions. Lack of active participation from domestic institutions and retail investors have also been a dampener.

According to analysts, the Reserve Bank of India is likely to continue to hike rates in coming months to try bringing inflation under comfort level. A hike of 50 basis points after this meet is not ruled out.

While domestic growth is admittedly moderating, our sense is that it is not exactly collapsing and is in line with the soft landing that is necessary to rein in demand-side inflationary pressures.

Braced with a prospect of inflation surpassing initial expectations yet again and taking comfort from a shallower than anticipated moderation in industrial production, we believe that the RBI is likely to hike its repo rate by 25 bps when it meets tomorrow.

It is likely to follow this up with two more rate hikes of 25 bps each in August and September before taking its foot off the rate hiking pedal and pausing to assess the impact of past tightening measures on inflation.

Bombay Stock Exchange's Sensex ended at 18132.24, down 176.42 points or 0.96 per cent. The 30-share index hit a high of 18308.69 and low of 18111.21 intraday.

National Stock Exchange's Nifty ended at 5447.10, down 53 points or 0.96 per cent. The broader index touched a high of 5499.35 and low of 5438.95 in trade today.

Now if you ask me the correct sentiment, it looks that 5000 will be hitting at some point of time.

BSE Midcap Index was down 0.55 per cent and BSE Smallcap Index moved 0.59 per cent lower.

Amongst sectoral indices, BSE Bankex was down 1.58 per cent, BSE Realty Index declined 1.34 per cent and BSE IT Index was down 1.25 per cent. BSE FMCG Index was up 0.14 per cent and BSE Healthcare Index edged 0.02 per cent up.

DLF (-2.80%), Wipro (-2.78%), SBI (-2.33%), ICICI Bank (-2.10%) and NTPC (-2.02%) were the major Sensex losers.

Reliance Infrastructure (1.46%), Tata Motors (0.96%), Hindustan Unilever (0.52%), Hero Honda (0.20%) and ITC (0.13%) were amongst the gainers.

Market breadth was negative on the BSE with 1641 losers against 1201 gainers.