WERE TODAY'S INDEX MOVERS
SENSEX 16488.24 -388.82
NIFTY 4943.65
-118.95
USD/INR 0051.75 +00.09
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UPDATEDTIME 09.28 PM 08 DECEMBER 2011
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The Bombay
Stock Exchange's Sensex ended near day's lows as concerns of domestic factors
like government's inability to continue with policy reforms, depreciating
rupee, high inflation, political instability and concerns over outcome of
European Union summit spooked sentiments.
The benchmarks opened in the red and start to lose ground after the special Central Bureau of Investigation court allowed Janata Party chief Subramanian Swamy to depose as a witness and provide further evidence in support of his complaint against the Home minister in 2G spectrum case.
This gave enough fodder for the BJP led opposition parties to demand for the resignation of Home Minister P Chidambaram on his alleged role in 2G spectrum case. Proceedings in the Lok Sabha resumed after being adjourned till 2 pm.
Some more trouble awaits the ruling UPA government in the parliament. A first information report has been registered against External Affairs Minister S M Krishna and two other former Karnataka Chief Ministers in land mining case by the Lokayukta Police, say reports.
According to analysts, the mix of factors is weighing the markets and investors are likely to be cautious till EU summit is over.
"Although the global cues were not negative, Indian equities lost ground in the opening trades. Developments on the political front related to the 2G fiasco excerbated the selling pressure and soon the markets had lost over 2%. Concerns on the fiscal health of the country may have also weighed on the market.
The European indices were volatile but remained in the green. This suggested that today's sell-off in equities was majorly due to issues on the domestic and economic front.
Looking ahead, important market moving events include meetings of ECB and EU, both scheduled today. Most economists expect ECB to cut interest rates to 1% from 1.25%. The EU summit decision is likely to be announced on Friday (Saturday morning in India).
So, markets should react to the news on Monday. The street would also be cautious before the IIP October data to be announced on Monday. Hence net-net, given the upcoming events, market mood may remain cautious.
Meanwhile the Reserve Bank of India has maintained a hawkish stand. Governor D. Subbarao has stated that controlling inflation remains priority over growth, say reports. The central bank will take further rate actions depending on inflation. He added that the RBI will take apt measures to ease liquidity in the system.
There was some silver lining for the investors with sharp fall in food inflation which eased to 6.60 per cent for week ended November 26 against 8 per cent a week ago.
The Sensex ended at 16488.24, down 388.82 points or 2.30 per cent. The 30-share index touched intraday low of 16421.55 high of 16847.82.
The benchmarks opened in the red and start to lose ground after the special Central Bureau of Investigation court allowed Janata Party chief Subramanian Swamy to depose as a witness and provide further evidence in support of his complaint against the Home minister in 2G spectrum case.
This gave enough fodder for the BJP led opposition parties to demand for the resignation of Home Minister P Chidambaram on his alleged role in 2G spectrum case. Proceedings in the Lok Sabha resumed after being adjourned till 2 pm.
Some more trouble awaits the ruling UPA government in the parliament. A first information report has been registered against External Affairs Minister S M Krishna and two other former Karnataka Chief Ministers in land mining case by the Lokayukta Police, say reports.
According to analysts, the mix of factors is weighing the markets and investors are likely to be cautious till EU summit is over.
"Although the global cues were not negative, Indian equities lost ground in the opening trades. Developments on the political front related to the 2G fiasco excerbated the selling pressure and soon the markets had lost over 2%. Concerns on the fiscal health of the country may have also weighed on the market.
The European indices were volatile but remained in the green. This suggested that today's sell-off in equities was majorly due to issues on the domestic and economic front.
Looking ahead, important market moving events include meetings of ECB and EU, both scheduled today. Most economists expect ECB to cut interest rates to 1% from 1.25%. The EU summit decision is likely to be announced on Friday (Saturday morning in India).
So, markets should react to the news on Monday. The street would also be cautious before the IIP October data to be announced on Monday. Hence net-net, given the upcoming events, market mood may remain cautious.
Meanwhile the Reserve Bank of India has maintained a hawkish stand. Governor D. Subbarao has stated that controlling inflation remains priority over growth, say reports. The central bank will take further rate actions depending on inflation. He added that the RBI will take apt measures to ease liquidity in the system.
There was some silver lining for the investors with sharp fall in food inflation which eased to 6.60 per cent for week ended November 26 against 8 per cent a week ago.
The Sensex ended at 16488.24, down 388.82 points or 2.30 per cent. The 30-share index touched intraday low of 16421.55 high of 16847.82.
The National
Stock Exchange's Nifty closed at 4943.65, down 118.95 points or 2.35 per cent.
The broader index touched a high of 5049.05 and low of 4921.45 in trade today.
Whenever you get a 2 per cent move in the opposite direction of an ongoing trend, chances are that market has reversed. Sure you could see some amount of attempt of pullback but now 4950-4980 will resist the market up moves. Today is a good day to take short positions home because today is the first day and the kind of selling you have seen, chances are that it should continue.
BSE Midcap Index was down 1.77 per cent and BSE Smallcap Index fell 1.61 per cent.
Amongst the sectoral indices, BSE Capital Goods Index fell 4.40 per cent, BSE Realty Index was 3.80 per cent lower, BSE Metal Index slipped 3.15 per cent and BSE Power Index declined 3.02 per cent.
Jaiprakash Associates (-5.41%), BHEL (-5.28%) Larsen & Toubro (-5.11%), Hindalco Industries (-5.02%) and Sterlite Industries (-4.38%) were amongst the major Sensex losers.
Wipro (2.35%), Sun Pharmaceuticals (1.49%), Cipla (0.88%), Tata Power (0.61%) and Bajaj Auto (0.29%) were the top index gainers.
The rupee was at 51.75, down 0.04 paise against previous close of 51.75 against the US dollar. The partially convertible rupee recovered after falling to low of intraday low 51.91 per dollar.
Market breadth was negative on the BSE with 842 gainers against 1910 losers.
The European markets were witnessing a choppy session ahead of European Union leaders meet to solve euro-zone sovereign debt crisis. FTSE 100 was up 0.21 per cent, CAC 40 slipped 0.24 per cent and DAX moved 0.06 per cent higher.
Whenever you get a 2 per cent move in the opposite direction of an ongoing trend, chances are that market has reversed. Sure you could see some amount of attempt of pullback but now 4950-4980 will resist the market up moves. Today is a good day to take short positions home because today is the first day and the kind of selling you have seen, chances are that it should continue.
BSE Midcap Index was down 1.77 per cent and BSE Smallcap Index fell 1.61 per cent.
Amongst the sectoral indices, BSE Capital Goods Index fell 4.40 per cent, BSE Realty Index was 3.80 per cent lower, BSE Metal Index slipped 3.15 per cent and BSE Power Index declined 3.02 per cent.
Jaiprakash Associates (-5.41%), BHEL (-5.28%) Larsen & Toubro (-5.11%), Hindalco Industries (-5.02%) and Sterlite Industries (-4.38%) were amongst the major Sensex losers.
Wipro (2.35%), Sun Pharmaceuticals (1.49%), Cipla (0.88%), Tata Power (0.61%) and Bajaj Auto (0.29%) were the top index gainers.
The rupee was at 51.75, down 0.04 paise against previous close of 51.75 against the US dollar. The partially convertible rupee recovered after falling to low of intraday low 51.91 per dollar.
Market breadth was negative on the BSE with 842 gainers against 1910 losers.
The European markets were witnessing a choppy session ahead of European Union leaders meet to solve euro-zone sovereign debt crisis. FTSE 100 was up 0.21 per cent, CAC 40 slipped 0.24 per cent and DAX moved 0.06 per cent higher.
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
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