SENSEX 16469.49 -371.01
NIFTY 4944.15
-112.45
NASDAQ 2401.20 -110.28
|
UPDATEDTIME 09.28 PM 18 AUGUST
2011
|
Benchmarks
underperformed all the major Asian indices and hit 52-week lows as investors
sold-off stocks on concerns of global economy slipping into recession.
Investors were also worried that a rate hike by the Reserve Bank of India to
control inflation would hurt domestic growth.
Morgan Stanley in its report has said that the U.S. and Europe are "dangerously close to recession." It has cut global GDP growth forecasts to 3.9% in 2011 and 3.8% in 2012, from 4.2% and 4.5%, respectively. The bank has also cut Bombay Stock Exchange's benchmark Sensex's year-end target to 18,850 citing weak earnings growth.
Back home, India's food price index rose 9.03 per cent for week ended August 6 as against 9.90 per cent a week ago while Fuel price index climbed 13.13 percent as compared to 12.19 per cent a week ago. Though the inflation has eased a little it is still stubbornly above the RBI's comfort levels.
Reacting to the food inflation figures, Finance Minister Pranab Mukherjee said that food inflation is still high and needs moderation. The RBI may go in for rate hike next month in order to rein in inflation as tackling high inflation remains its primary concern.
"Food inflation at the level of 9 per cent is not acceptable. I do hope the measures taken to remove supply constraints in some of the agricultural commodities and good monsoon will help to have further moderating influence on the prices of food and other essential commodities.
Meanwhile, there is some good news from weather department. India's monsoon rains were 26 percent above normal for the week ended August 17.
Markets opened in the green but failed to extend gains in absence of support from Asian peers. Intense selling pressure by institutional investors in banking and technology majors pushed the benchmarks to 52-week lows.
National Stock Exchange's Nifty ended at 4944.15, down 112.45 points or 2.22 per cent. The broader index hit a 52-week low of 4932.12 and high of 5078.60 in trade today.
Bombay Stock Exchange's Sensex closed at 16469.79, down 371.01 points or 2.20 per cent. The 30-share index touched intraday low of 16433.31 and high of 16916.81.
Nifty future has breached its crucial support of 5000 levels and now trading at its 14 months low. Selling can remain in the market till it doesn't close above 5120 levels above which some buying in the form of short covering can be seen.
Morgan Stanley in its report has said that the U.S. and Europe are "dangerously close to recession." It has cut global GDP growth forecasts to 3.9% in 2011 and 3.8% in 2012, from 4.2% and 4.5%, respectively. The bank has also cut Bombay Stock Exchange's benchmark Sensex's year-end target to 18,850 citing weak earnings growth.
Back home, India's food price index rose 9.03 per cent for week ended August 6 as against 9.90 per cent a week ago while Fuel price index climbed 13.13 percent as compared to 12.19 per cent a week ago. Though the inflation has eased a little it is still stubbornly above the RBI's comfort levels.
Reacting to the food inflation figures, Finance Minister Pranab Mukherjee said that food inflation is still high and needs moderation. The RBI may go in for rate hike next month in order to rein in inflation as tackling high inflation remains its primary concern.
"Food inflation at the level of 9 per cent is not acceptable. I do hope the measures taken to remove supply constraints in some of the agricultural commodities and good monsoon will help to have further moderating influence on the prices of food and other essential commodities.
Meanwhile, there is some good news from weather department. India's monsoon rains were 26 percent above normal for the week ended August 17.
Markets opened in the green but failed to extend gains in absence of support from Asian peers. Intense selling pressure by institutional investors in banking and technology majors pushed the benchmarks to 52-week lows.
National Stock Exchange's Nifty ended at 4944.15, down 112.45 points or 2.22 per cent. The broader index hit a 52-week low of 4932.12 and high of 5078.60 in trade today.
Bombay Stock Exchange's Sensex closed at 16469.79, down 371.01 points or 2.20 per cent. The 30-share index touched intraday low of 16433.31 and high of 16916.81.
Nifty future has breached its crucial support of 5000 levels and now trading at its 14 months low. Selling can remain in the market till it doesn't close above 5120 levels above which some buying in the form of short covering can be seen.
On the downside, it now finds support at 4800 levels, if failed to hold
above these levels, it can test 4700-4650 levels on downside.
BSE Midcap Index was down 2.05 per cent and BSE Smallcap Index fell 2.62 per cent.
All the sectoral indices ended in the red. BSE IT Index was down 3.99 per cent, BSE Bankex fell 3.51 per cent and BSE Metal Index declined 2.54 per cent.
Among the Nifty 50 stocks, aggressive short built-up of position was seen in Axis Bank, SBI, Tata Motors, HDFC, INFY, Tata Steel, Maruti, TCS, Wipro, Jindal Steel, etc whereas none of the stocks witnessed long built-up or short covering, suggesting negative bias in the market.
Some of the other stocks looking weak are IDFC, SBI, Axis Bank, Infy and Sterlite whereas defensive stocks like Nestle, ITC and Dabur are can some positive momentum.
ICICI Bank (-5.03%), Wipro (-4.72%), SBI (-4.47%), Sterlite Industries (-4.28%) and TCS (-4.23%) were the top Nifty losers.
DLF (2.70%), Hero Motocorp (0.67%), Hindustan Unilever (0.41%) and Jaiprakash Associates (0.25%) were the only index gainers.
Market breadth was negative on the BSE with 1655 losers against 705 gainers.
The European markets were under pressure and the US stock futures indicated a gap down opening ahead of economic data like jobless claims. Dow Jones futures was down 173 points, S&P 500 fell 21 points and Nasdaq was 43 points lower.
Markets are fearful of a return to recession, while fresh plans to tackle the eurozone debt crisis have failed to win over investors, who brushed off Tuesday's summit meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel.
Traders also dismissed the pair's proposal for a Europe-wide tax on financial transactions as old hat, likely to be ineffective at best and at worst, to drive business out of Europe into other centres. Regards
BSE Midcap Index was down 2.05 per cent and BSE Smallcap Index fell 2.62 per cent.
All the sectoral indices ended in the red. BSE IT Index was down 3.99 per cent, BSE Bankex fell 3.51 per cent and BSE Metal Index declined 2.54 per cent.
Among the Nifty 50 stocks, aggressive short built-up of position was seen in Axis Bank, SBI, Tata Motors, HDFC, INFY, Tata Steel, Maruti, TCS, Wipro, Jindal Steel, etc whereas none of the stocks witnessed long built-up or short covering, suggesting negative bias in the market.
Some of the other stocks looking weak are IDFC, SBI, Axis Bank, Infy and Sterlite whereas defensive stocks like Nestle, ITC and Dabur are can some positive momentum.
ICICI Bank (-5.03%), Wipro (-4.72%), SBI (-4.47%), Sterlite Industries (-4.28%) and TCS (-4.23%) were the top Nifty losers.
DLF (2.70%), Hero Motocorp (0.67%), Hindustan Unilever (0.41%) and Jaiprakash Associates (0.25%) were the only index gainers.
Market breadth was negative on the BSE with 1655 losers against 705 gainers.
The European markets were under pressure and the US stock futures indicated a gap down opening ahead of economic data like jobless claims. Dow Jones futures was down 173 points, S&P 500 fell 21 points and Nasdaq was 43 points lower.
Markets are fearful of a return to recession, while fresh plans to tackle the eurozone debt crisis have failed to win over investors, who brushed off Tuesday's summit meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel.
Traders also dismissed the pair's proposal for a Europe-wide tax on financial transactions as old hat, likely to be ineffective at best and at worst, to drive business out of Europe into other centres. Regards
RAKESH MAKIN
+91 9915684997,
9041667797(DIRECT)
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
Group mail id: makin97NSEtips@yahoogroups.co.in
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