makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 20.07.2011 WEDNESDAY

WERE TODAY'S GAINERS

MARKET ENDED 20.07.2010 WEDNESDAY

SENSEX 18502.38 -151.49

NIFTY 5567.05 -46.50

NASDAQ 2817.12 -09.40

UPDATEDTIME 09.28 PM 20 JULY 2011

Indian markets ended in the negative territory, giving away gains of last session, as benchmarks failed to breach intermediate resistance levels. Positive cues from global markets were ignored by the traders. Healthcare, power and capital goods were the top sectoral losers while FMCG space ended marginally higher.

According to analysts, the market is likely to consolidate in a range with stock specific action. Debt concerns in Europe and the US and Reserve Bank of India's policy meet will be eyed for direction. The street is expecting 25 basis points hike in interest rates by the central bank to contain inflation.

Finance Minister Pranab Mukherjee expects inflation to remain high until end-December. "We expect that the headline WPI inflation should moderate to 6 to 7 percent by March 2012," he said.

"It is (25 bps hike) very much priced in. We have to look further beyond the credit policy now and think where the economy is going to be in terms of inflation. Our view remains that at some point there will be demand destruction from the high oil prices.
We saw a sell off a few months back and the oil prices have been creeping back. So until you see that and lower commodity prices globally, the inflation probably will keep there and keep the markets preoccupied by that.

Bombay Stock Exchange's Sensex closed at 18502.38, down 151.49 points or 0.81 per cent. The 30-share index touched intraday low of 18473.90 and high of 18765.60.

National Stock Exchange's Nifty ended at 5567.05, down 46.50 points or 0.83 per cent. The broader index touched a high of 5645.40 and low of 5555.10 in trade today.

"Nifty has strong support at 5530 and expect it to bounce back from here. In case, this support is breached then the index can drift to 5467. On the higher side, the market is facing strong supply at 5723-5650 levels.

"We are bullish on Sun Pharma , Educomp Solutions , textile stocks and other select midcap stocks.

BSE Midcap Index was down 0.88 per cent and BSE Smallcap Index moved 0.36 per cent lower.

Amongst sectoral indices, BSE Power Index fell 1.73 per cent, BSE Healthcare Index was down 1.71 per cent and BSE Capital Goods Index declined 1.45 per cent. BSE FMCG Index was up 0.24 per cent.

Wipro (-3.95%), Hindalco Industries (-2.71%), Jaiprakash Associates (-2.51%), Tata Power (-1.98%) and Hero Honda (-1.90%) were amongst the top Sensex losers.

DLF (1.63%), ITC (0.93%), Maruti (0.09%), Hindustan Unilever (0.03%) and Infosys Technologies (0.06%) were the only index gainers.

Shares of Wipro slipped after the company announced June quarter results. The company's standalone net profit rose to Rs 1219.30 crore for the quarter ended June 2011 against Rs 1337.60 crore in the same period a year ago. Net sales were at Rs 7311.30 crore as compared to Rs 7178.40 crore.

Dr Reddy's Laboratories reported consolidated net profit of Rs 262.74 crore for quarter ended June 2011 against Rs 209.55 crore in the same quarter a year ago. Net incomes climbed to Rs 1978.32 crore as compared to Rs 1683.13 crore.

Lupin came under pressure after after the company disclosed that renowned investor Rakesh Jhunjhunwala has lowered his stake in the company by more than half through the sale of stock currently worth over Rs 300 crore.

Shares of Crompton Greaves continued to reel under pressure for second straight session after reporting sharp fall in net profit for quarter ended June 2011.

Market breadth was negative on the BSE with 1696 losers against 1195 gainers.