makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 18.07.2011 MONDAY

WERE TODAY'S GAINERS

MARKET ENDED 18.07.2010 MONDAY

SENSEX 18507.04 -54.88

NIFTY 5567.05 -14.05

NASDAQ 2752.84 -36.96

UPDATEDTIME 09.28 PM 18 JULY 2011

Indian markets ended a lackluster session in the negative terrain as concerns of economic crisis in Europe and the US hurt sentiments. Gains in realty, metals and power stocks were offset by losses in auto, technology and healthcare space. On the domestic front, the market is likely to take cues from quarterly earnings and policy reforms.

"The short term concerns like inflation, interest rates and high crude prices have largely been discounted by the market. The markets are trading at a very reasonable valuation of 14times FY12 earnings. We expect Q1FY12(Y-o-Y) earnings growth to be in the range of 15%-20%. The corporate advance tax numbers have shown a growth of 22% over last year.

We expect the earnings to be led by the banking space. The earnings growth for leading private sector banks is expected to be between 20%-25% and hence we continue to be bullish on private banks. We also expect IT and pharma to post good numbers. The monsoon session of Parliament, also starting in August, could see some reform measures in sectors like Insurance and retail being announced.

We expect the earnings growth and reform action to drive equity market returns in the medium to long term.

Bombay Stock Exchange's Sensex ended at 18507.04, down 54.88 points or 0.30 per cent. The 30-share index touched intraday low of 18469.53 and high of 18622.56.

National Stock Exchange's Nifty was at 5567.05, down 14.05 points or 0.25 per cent. The broader index touched a high of 5596.60 and low of 5550.95 in trade today.

Nifty future is consolidating sideways in the range of 5500-5620 levels, where on the upside, stiff resistance is seen at 5620 levels, a close above this may lead to some buying interest which may head Nifty towards 5660-5680 levels.

On the downside, 5540 levels holds as an important support for the market, if it breaches this level, we may see Nifty testing below 5500 levels where maximum put OI concentration is seen. VIX index increased by around 1% and has closed above 20 levels, a further rise in the index may lead to uncertainty in the market.

BSE Midcap Index was up 0.22 per cent and BSE Smallcap Index moved 0.37 per cent higher.

Amongst sectoral indices BSE Realty Index was up 0.89 per cent, BSE Metal Index gained 0.48 per cent and BSE Power Index moved 0.43 per cent higher. BSE Auto Index slipped 1.04 per cent, BSE IT Index declined 0.81 per cent and BSE Healthcare Index edged 0.80 per cent lower.

Hindalco (3.60%), BHEL (2.65%), Tata Power (2.54%), GAIL (1.98%) and IDFC (1.40%) were the major Nifty gainers.

Cipla (-2.16%), Reliance Communications (-2.14%) M&M (-2.14%), NTPC (-2.05%) and TCS (-2.01%) and were amongst the top losers.

Market breadth was positive on the NSE with 1601 gainers against 1332 losers.