WERE TODAY'S GAINERS
SENSEX 17192.82 -169.25
NIFTY 5168.85
-52.20
USD/INR 0050.17 +00.86
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UPDATEDTIME 09.28 PM 11 NOVEMBER 2011
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The Bombay
Stock Exchange's Sensex ended in the negative territory Friday as below
estimates Index of Industrial Production numbers for the month of September
dampened sentiments. The benchmarks managed to take support near intermediate
support levels and shed some of the intraday losses on the back of positive
European peers.
The IIP growth for the month of September slipped to 1.9 per cent vs 4.1 per cent in August. Manufacturing growth was at 2.1 per cent vs 4.5 per cent and mining growth was at -5.6 per cent vs -3.4 per cent in August.
Reacting to the disappointing IIP data, Kaushik Basu, chief economic adviser to the finance ministry said that industrial production data is a matter of great concern and the global situation is responsible for it.
The absence of any policy announcements from the RBI in the coming weeks and the RBI's tacit guidance for a pause in the near-term will limit market reaction to such data in the near-term. We believe, given the current expectations of slowing growth and sticky inflation, on balance, the central bank would prefer to hold policy interest rates steady for a prolonged period. A reduction in policy interest rates, we believe, will take place only around mid-2012," said Barclays Capital note.
Meanwhile, the India's food inflation for the week ended October 20 eased a bit. India's food price index was at 11.81 per cent for the week ended October 29 as compared to 12.21 per cent a week ago.
The Sensex ended at 17192.82, down 169.28 points or 0.97 per cent. The 30-share index touched intraday low of 17096.84 and high of 17279.23.
The National Stock Exchange's Nifty closed 5168.85, down 52.20 points or 1 per cent. The broader index touched a high of 5198.60 and low of 5142.25 in trade today.
We did not ever cross Wednesday's low which was about 5220 even once so it is not at all convincing particularly the way the Bank Nifty has come down 600 points. So the breakdown is really starting out there and if we get more such days where large banks like ICICI or State Bank or Axis Bank keep falling 4%-5% then 5150 is only a matter of time.
So some kind of a breach has happened this week both for the Bank Nifty as well as the Nifty. It is because of these banking stocks that we continue to trend down. So early next week will be key in terms of establishing whether we are getting back into that range of 4700-5150.
BSE Midcap Index was down 1.13 per cent and BSE Smallcap Index fell 1.57 per cent.
Amongst the sectoral indices, BSE Bankex was down 3.03 per cent, BSE Metal Index fell 2.33 per cent and BSE Capital goods Index declined 2.32 per cent. BSE Oil&gas Index gained 0.79 per cent and BSE Auto Index moved 0.62 per cent higher.
ICICI Bank (-4.55%), Hindalco Industries (-4.31%), Tata Steel (-4.19%), State Bank of India (-3.48%) and Larsen & Toubro (-3.30%) were amongst the major Sensex losers.
Tata Steel reported 89.3 per cent decline in consolidated net profit for the second quarter ended September. The company's net profit fell to Rs 212 crore from Rs 1979 crore in the same period last year. Net sales grew 15.7% to Rs 32,507 crore.
Hindalco Industries' net profit grew in the July-September 2011 period grew to Rs 503 crore from Rs434 crore last year. The company's net sales and operating revenue in the same period went up 7% to Rs 6,272 crore from Rs 5,860 crore in the previous corresponding period.
Unable to raise funds from the equity or debt markets and fast running out of cash to pay for fuel supplies, Kingfisher Airlines, India's second largest carrier by market share, has cancelled several flights daily since Sunday in an effort to cut capacity and minimise costs.
The stock ended at Rs 19.65, down 9.45 per cent on the BSE. It touched a high of Rs 20.70 and low of Rs 17.55 intraday.
On monthly charts, Kingfisher Airlines is forming a FLAG pattern. The stock has negative bias and on closing basis it has a strong support at Rs 18. If, the stock fails to hold this support then it can fall to Rs 11. It will stabilise only if it moves above Rs 26 level.
Shares of State Bank of India and ICICI Bank which hold 5.68 per cent and 5.30 per cent stake respectively in Kingfisher Airlines were also under pressure.
M&M (3.12%), Sun Pharma (2.48%), Reliance Industries (2.23%), Hero MotoCorp (1.85%), and Bajaj Auto (1.64%) were amongst the major index gainers.
Market breadth was negative on the BSE with 937 gainers against 1912 losers.
The IIP growth for the month of September slipped to 1.9 per cent vs 4.1 per cent in August. Manufacturing growth was at 2.1 per cent vs 4.5 per cent and mining growth was at -5.6 per cent vs -3.4 per cent in August.
Reacting to the disappointing IIP data, Kaushik Basu, chief economic adviser to the finance ministry said that industrial production data is a matter of great concern and the global situation is responsible for it.
The absence of any policy announcements from the RBI in the coming weeks and the RBI's tacit guidance for a pause in the near-term will limit market reaction to such data in the near-term. We believe, given the current expectations of slowing growth and sticky inflation, on balance, the central bank would prefer to hold policy interest rates steady for a prolonged period. A reduction in policy interest rates, we believe, will take place only around mid-2012," said Barclays Capital note.
Meanwhile, the India's food inflation for the week ended October 20 eased a bit. India's food price index was at 11.81 per cent for the week ended October 29 as compared to 12.21 per cent a week ago.
The Sensex ended at 17192.82, down 169.28 points or 0.97 per cent. The 30-share index touched intraday low of 17096.84 and high of 17279.23.
The National Stock Exchange's Nifty closed 5168.85, down 52.20 points or 1 per cent. The broader index touched a high of 5198.60 and low of 5142.25 in trade today.
We did not ever cross Wednesday's low which was about 5220 even once so it is not at all convincing particularly the way the Bank Nifty has come down 600 points. So the breakdown is really starting out there and if we get more such days where large banks like ICICI or State Bank or Axis Bank keep falling 4%-5% then 5150 is only a matter of time.
So some kind of a breach has happened this week both for the Bank Nifty as well as the Nifty. It is because of these banking stocks that we continue to trend down. So early next week will be key in terms of establishing whether we are getting back into that range of 4700-5150.
BSE Midcap Index was down 1.13 per cent and BSE Smallcap Index fell 1.57 per cent.
Amongst the sectoral indices, BSE Bankex was down 3.03 per cent, BSE Metal Index fell 2.33 per cent and BSE Capital goods Index declined 2.32 per cent. BSE Oil&gas Index gained 0.79 per cent and BSE Auto Index moved 0.62 per cent higher.
ICICI Bank (-4.55%), Hindalco Industries (-4.31%), Tata Steel (-4.19%), State Bank of India (-3.48%) and Larsen & Toubro (-3.30%) were amongst the major Sensex losers.
Tata Steel reported 89.3 per cent decline in consolidated net profit for the second quarter ended September. The company's net profit fell to Rs 212 crore from Rs 1979 crore in the same period last year. Net sales grew 15.7% to Rs 32,507 crore.
Hindalco Industries' net profit grew in the July-September 2011 period grew to Rs 503 crore from Rs434 crore last year. The company's net sales and operating revenue in the same period went up 7% to Rs 6,272 crore from Rs 5,860 crore in the previous corresponding period.
Unable to raise funds from the equity or debt markets and fast running out of cash to pay for fuel supplies, Kingfisher Airlines, India's second largest carrier by market share, has cancelled several flights daily since Sunday in an effort to cut capacity and minimise costs.
The stock ended at Rs 19.65, down 9.45 per cent on the BSE. It touched a high of Rs 20.70 and low of Rs 17.55 intraday.
On monthly charts, Kingfisher Airlines is forming a FLAG pattern. The stock has negative bias and on closing basis it has a strong support at Rs 18. If, the stock fails to hold this support then it can fall to Rs 11. It will stabilise only if it moves above Rs 26 level.
Shares of State Bank of India and ICICI Bank which hold 5.68 per cent and 5.30 per cent stake respectively in Kingfisher Airlines were also under pressure.
M&M (3.12%), Sun Pharma (2.48%), Reliance Industries (2.23%), Hero MotoCorp (1.85%), and Bajaj Auto (1.64%) were amongst the major index gainers.
Market breadth was negative on the BSE with 937 gainers against 1912 losers.
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
Group mail id: makin97NSEtips@yahoogroups.co.in
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