SENSEX 16805.33 -41.50
NIFTY 5039.15
-11.00
USD/INR 0051.37 +00.26
UPDATEDTIME 09.28 PM 05 DECEMBER 2011
Note:
The stock exchanges will remain closed on Tuesday on account of Ashura.
|
The Bombay
Stock Exchange's Sensex ended a choppy session in the negative territory due to
lack of buying conviction amongst investors at higher levels after rally in
last session. Traders also chose to stay on sidelines ahead of holiday on
Tuesday.
The market now awaits resumption of work in the parliament on Wednesday after the government announced its decision to put FDI in retail policy on hold. There has been a logjam in the parliament since the beginning of winter session on November 22 between the government and opposition parties on FDI in retail.
Finance Minister, Pranab Mukherjee has told opposition leader Sushma Swaraj that the government had put on hold its decision to allow foreign direct investment in retail. However, the BJP wants the government to roll-back the decision.
Domestic problems like weak rupee, inflation and government polices may keep the market volatile for next 9-12 months.
"India now is facing three separate problems. One is the weakness in rupee. It hit 52 and is now under 51, but I don't think it is going to go down to 45 in a hurry. This will continue to press on inflation.
Inflation is stuck at 9.5-9.7% and looks as if it is not going to come down. Therefore if the Reserve Bank of India was to cut interest rates, in all probability this is going to cause the rupee re-depreciate sharply. Therefore, it is not going to do anything on inflation.
RBI had said that it is the last increase in rates, but I do not think that they are going to cut interest rates. So the Indian equity markets were boosted not because of India, but because of the all of global uptick on the equities.
There is nothing in the domestic side in India to be bullish about. Also the mess the liberalisation of the retail distribution, which is one step forward, one step backwards and 5 steps sideways.
The Sensex ended at 16805.33, down 41.50 points or 0.25 per cent. The 30-share index touched intraday low of 16691.21 and high of 16863.10.
The National Stock Exchange's Nifty closed at 5039.15, down 11 points or 0.22 per cent. The broader index touched a high of 5055.40 and low of 5002.55 in trade today.
The market now awaits resumption of work in the parliament on Wednesday after the government announced its decision to put FDI in retail policy on hold. There has been a logjam in the parliament since the beginning of winter session on November 22 between the government and opposition parties on FDI in retail.
Finance Minister, Pranab Mukherjee has told opposition leader Sushma Swaraj that the government had put on hold its decision to allow foreign direct investment in retail. However, the BJP wants the government to roll-back the decision.
Domestic problems like weak rupee, inflation and government polices may keep the market volatile for next 9-12 months.
"India now is facing three separate problems. One is the weakness in rupee. It hit 52 and is now under 51, but I don't think it is going to go down to 45 in a hurry. This will continue to press on inflation.
Inflation is stuck at 9.5-9.7% and looks as if it is not going to come down. Therefore if the Reserve Bank of India was to cut interest rates, in all probability this is going to cause the rupee re-depreciate sharply. Therefore, it is not going to do anything on inflation.
RBI had said that it is the last increase in rates, but I do not think that they are going to cut interest rates. So the Indian equity markets were boosted not because of India, but because of the all of global uptick on the equities.
There is nothing in the domestic side in India to be bullish about. Also the mess the liberalisation of the retail distribution, which is one step forward, one step backwards and 5 steps sideways.
The Sensex ended at 16805.33, down 41.50 points or 0.25 per cent. The 30-share index touched intraday low of 16691.21 and high of 16863.10.
The National Stock Exchange's Nifty closed at 5039.15, down 11 points or 0.22 per cent. The broader index touched a high of 5055.40 and low of 5002.55 in trade today.
Bank of
America Merrill Lynch is of the view that Sensex can fall to 14,500 in next six
months on the back of disappointment in GDP and earnings growth.
December has historically been a positive month for the Indian markets.... We could see a year-end rally this year too given a likely pause in RBI rate hikes. However, we would advise investors to sell the year-end rally.
BSE Midcap Index was down 0.05 per cent and BSE Smallcap Index was up 0.09 per cent.
Amongst the sectoral indices, BSE Metal Index was down 0.90 per cent, BSE FMCG Index declined 0.67 per cent and BSE Realty Index was 0.50 per cent lower. BSE Power Index moved 0.86 per cent higher, BSE Capital Goods Index gained 0.77 per cent and BSE Auto Index moved 0.04 per cent higher.
Tata Steel (-1.73%), Sun Pharmaceuticals (-1.53%), Sterlite Industries (-1.46%), ITC (-0.99%), Hero Moto Corp (-0.99%) were the major Sensex losers.
NTPC (2.50%), Jaiprakash Associates (2.45%), BHEL (1.96%), State Bank of India (1.17%) and Hindalco Industries (0.70%) led the gainers pack.
Market breadth was flat on the BSE with 1357 gainers against 1332 losers.
Note: The stock exchanges will remain closed on Tuesday on account of Ashura.
December has historically been a positive month for the Indian markets.... We could see a year-end rally this year too given a likely pause in RBI rate hikes. However, we would advise investors to sell the year-end rally.
BSE Midcap Index was down 0.05 per cent and BSE Smallcap Index was up 0.09 per cent.
Amongst the sectoral indices, BSE Metal Index was down 0.90 per cent, BSE FMCG Index declined 0.67 per cent and BSE Realty Index was 0.50 per cent lower. BSE Power Index moved 0.86 per cent higher, BSE Capital Goods Index gained 0.77 per cent and BSE Auto Index moved 0.04 per cent higher.
Tata Steel (-1.73%), Sun Pharmaceuticals (-1.53%), Sterlite Industries (-1.46%), ITC (-0.99%), Hero Moto Corp (-0.99%) were the major Sensex losers.
NTPC (2.50%), Jaiprakash Associates (2.45%), BHEL (1.96%), State Bank of India (1.17%) and Hindalco Industries (0.70%) led the gainers pack.
Market breadth was flat on the BSE with 1357 gainers against 1332 losers.
Note: The stock exchanges will remain closed on Tuesday on account of Ashura.
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
Facebook: facebook.com/MAKIN97
Group mail id: makin97NSEtips@yahoogroups.co.in
No comments:
Post a Comment