SENSEX 16958.39 +421.92
NIFTY 5099.40 +125.05
USD/INR 0048.95 -00.39
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UPDATEDTIME 09.28 PM 12 OCTOBER 2011
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The 30-share
Bombay Stock Exchange benchmark Sensex surged higher to close near important
resistance level on the back of sustained buying activity in technology, banks
and realty space. The market cheered in-line results of IT bellwether Infosys
and discounted below estimates IIP data.
India's IIP for the month of August 2011 grew at 4.1 per cent against 3.3 per cent a month ago. The street was expecting the growth to be close to 5 per cent.
The significant decline in domestic activity, the adverse global environment, falling asset prices, and tightening financial conditions suggest to us that the RBI will likely pause on October 25.
The key, however, will be the WPI inflation print for September, which the RBI is watching very carefully for a slowdown in momentum on inflation, particularly core.
Our current forecast for the September WPI print to be released on October 14 is 9.7% y-o-y. In our view, any downside surprise to that number will likely seal the case for a pause by the RBI.
According to Subir Gokarn, deputy governor at RBI, the central bank will change its monetary policy stance only if inflation eases and further rate increases will depend on the price rise situation.
Reacting to the disappointing IIP figures, Finance Minister Pranab Mukherjee said that it may affect the GDP of second quarter.
The Sensex closed at 16958.39, up 421.92 points or 2.55 per cent. The index touched intraday low of 16608.57 and high of 16987.06.
The National Stock Exchange's Nifty ended at 5099.40, up 125.05 points or 2.51 per cent. The broader index touched a high of 5109.80 and low of 4997.65 in trade today.
BSE Midcap Index was up 1.40 per cent and BSE Smallcap Index gained 1.18 per cent.
All the sectoral indices ended in the positive terrain. BSE IT Index surged 5.21 per cent, BSE Bankex gained 3.38 per cent, BSE Realty Index advanced 2.97 per cent and BSE Capital Goods Index moved 2.44 per cent higher.
Infosys(6.83%), Jindal Steel (6.08%), SBI (6.07%), Tata Consultancy Services (3.66%) and Sterlite Industries (3.63%) were amongst the major Sensex gainers.
Infosys reported 9.72 per cent growth in its consolidated net profit to Rs 1,906 crore for the second quarter ended September 30 against Rs 1,737 crore in the same quarter last fiascal. Consolidated revenue rose to Rs 8,099 crore from Rs 6,947 crore in the year-ago period.
We believe the management has primarily revised its FY12E revenue guidance in USD primarily due to adverse cross currency movement against US dollar. The management is expecting growth of around 5% plus QoQ in Q3FY12 and Q4FY12 indicating better than expected buoyancy in demand environment for selected few tier I IT players.
Moreover the company has significantly increased its FY12E EPS guidance to Rs 143 - Rs 145 from the previous guidance of Rs 128 - Rs 130, primarily on back of INR depreciation against USD on QoQ basis in Q2FY12.
Coal India (-1.71%), Tata Power (-1.56%) and Bharti Airtel (-0.20%) were amongst the only losers.
Market breadth was positive on the BSE with 1846 gainers against 974 losers.
India's IIP for the month of August 2011 grew at 4.1 per cent against 3.3 per cent a month ago. The street was expecting the growth to be close to 5 per cent.
The significant decline in domestic activity, the adverse global environment, falling asset prices, and tightening financial conditions suggest to us that the RBI will likely pause on October 25.
The key, however, will be the WPI inflation print for September, which the RBI is watching very carefully for a slowdown in momentum on inflation, particularly core.
Our current forecast for the September WPI print to be released on October 14 is 9.7% y-o-y. In our view, any downside surprise to that number will likely seal the case for a pause by the RBI.
According to Subir Gokarn, deputy governor at RBI, the central bank will change its monetary policy stance only if inflation eases and further rate increases will depend on the price rise situation.
Reacting to the disappointing IIP figures, Finance Minister Pranab Mukherjee said that it may affect the GDP of second quarter.
The Sensex closed at 16958.39, up 421.92 points or 2.55 per cent. The index touched intraday low of 16608.57 and high of 16987.06.
The National Stock Exchange's Nifty ended at 5099.40, up 125.05 points or 2.51 per cent. The broader index touched a high of 5109.80 and low of 4997.65 in trade today.
BSE Midcap Index was up 1.40 per cent and BSE Smallcap Index gained 1.18 per cent.
All the sectoral indices ended in the positive terrain. BSE IT Index surged 5.21 per cent, BSE Bankex gained 3.38 per cent, BSE Realty Index advanced 2.97 per cent and BSE Capital Goods Index moved 2.44 per cent higher.
Infosys(6.83%), Jindal Steel (6.08%), SBI (6.07%), Tata Consultancy Services (3.66%) and Sterlite Industries (3.63%) were amongst the major Sensex gainers.
Infosys reported 9.72 per cent growth in its consolidated net profit to Rs 1,906 crore for the second quarter ended September 30 against Rs 1,737 crore in the same quarter last fiascal. Consolidated revenue rose to Rs 8,099 crore from Rs 6,947 crore in the year-ago period.
We believe the management has primarily revised its FY12E revenue guidance in USD primarily due to adverse cross currency movement against US dollar. The management is expecting growth of around 5% plus QoQ in Q3FY12 and Q4FY12 indicating better than expected buoyancy in demand environment for selected few tier I IT players.
Moreover the company has significantly increased its FY12E EPS guidance to Rs 143 - Rs 145 from the previous guidance of Rs 128 - Rs 130, primarily on back of INR depreciation against USD on QoQ basis in Q2FY12.
Coal India (-1.71%), Tata Power (-1.56%) and Bharti Airtel (-0.20%) were amongst the only losers.
Market breadth was positive on the BSE with 1846 gainers against 974 losers.
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
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