SENSEX 15870.35 -343.11
NIFTY 4764.60
-102.10
USD/INR 0052.59 +01.32
|
UPDATEDTIME 09.28 PM 12 DECEMBER 2011
|
The Bombay
Stock Exchange's Sensex plunged following disappointing Index of Industrial
Production figures and closed near day's lows as risk-averse investors booked
profits across the board on concerns of growth slowdown. Weak European markets
and sharp fall in Indian rupee also kept bulls under pressure.
India's industrial output shrunk by 5.1 per cent in October as compared to growth of 1.9 per cent a month ago. Steep fall was seen across most of the sectors, particularly manufacturing, mining and capital goods. The IIP had grown 11.3 per cent in a year ago.
The IIP data came below our expectations. As expected, manufacturing segment impacted the overall IIP growth. The fall of about 26% YoY in capital goods was steeper than expected. The overall economic slowdown, higher interest rates and weak global scenario impacted growth. The weak IIP numbers and recent fall in primary articles' inflation may lead to a pause by the RBI in this week's monetary policy meeting.
While the IIP numbers were disappointing, the markets were also likely impacted by the currency fluctuations. The rupee depreciated sharply by more than 1% v/s USD today, and this also made the markets nervous. Stocks across the sectors were weak. IT sector outperformed post the outcome of the EU summit and also due to the depreciation of INR.
Meanwhile, the Indian rupee plunged to record low against the US dollar following sharp correction in the stock exchanges and demand from importers. The partially convertible rupee was at 52.68, down 0.65 paise or 1.25 per cent against previous close of 52.03 per dollar.
The market is likely to take cues from monthly inflation figures and the Reserve Bank of India's policy review meet later this week, say dealers.
According to Nomura, the Reserve Bank of India is going to keep the interest rates unchanged to contain inflation.
From a policy perspective, although economic activity is likely to weaken in the months ahead, we believe inflation will remain the Reserve Bank of India's primary concern. We expect core inflation to remain high in November, hence we expect the RBI to stay on hold at its 16 December meeting.
The Sensex ended at 15870.35, down 343.11 points or 2.12 per cent. The 30-share index touched intraday low of 15839.96 and high of 16360.32.
The National Stock Exchange's Nifty closed at 4764.60, down 102.10 points or 2.10 per cent. The broader index touched a high of 4910.25 and low of 4755.55 in trade today.
BSE Midcap Index was down 1.90 per cent and BSE Smallcap Index fell 1.54 per cent.
Amongst the sectoral indices, BSE Metal Index fell 4.14 per cent, BSE Bankex was down 2.98 per cent, BSE Oil&gas Index declined 2.80 per cent and BSE Realty Index moved 2.67 per cent lower. BSE IT Index was up 0.95 per cent.
Tata Power (-6.46%), Hindalco Industries (-6.37%), Jindal Steel (-5.14%), State Bank of India (-4.87%), and Jaiprakash Associates (-4.81%) were amongst the major Sensex losers.
Wipro (2.56%), Infosys Technologies (0.93%) and TCS (0.70%) were the only index gainers.
Shares of Essar Oil, Essar Shipping and Essar Ports plunged after the Central Bureau of Investigation filed charge-sheets against Ravi Ruia, Anshuman Ruia and Vikas Saraf in 2G case. Kiran and IP Khaitan are also named in the charge-sheet. Essar Oil was fell 10.89 per cent, Essar Ports plunged 7.71 per cent and Essar Shipping declined 9.73 per cent.
Market breadth was negative on the NSE with 798 gainers against 1943 losers.
The European markets were witnessing profit booking session after downgrade warnings of some of the euro-zone economies from rating agency Moody's. FTSE 100 was down 0.70 per cent, CAC 40 fell 0.88 per cent and DAX was 1.61 per cent lower. Regards
India's industrial output shrunk by 5.1 per cent in October as compared to growth of 1.9 per cent a month ago. Steep fall was seen across most of the sectors, particularly manufacturing, mining and capital goods. The IIP had grown 11.3 per cent in a year ago.
The IIP data came below our expectations. As expected, manufacturing segment impacted the overall IIP growth. The fall of about 26% YoY in capital goods was steeper than expected. The overall economic slowdown, higher interest rates and weak global scenario impacted growth. The weak IIP numbers and recent fall in primary articles' inflation may lead to a pause by the RBI in this week's monetary policy meeting.
While the IIP numbers were disappointing, the markets were also likely impacted by the currency fluctuations. The rupee depreciated sharply by more than 1% v/s USD today, and this also made the markets nervous. Stocks across the sectors were weak. IT sector outperformed post the outcome of the EU summit and also due to the depreciation of INR.
Meanwhile, the Indian rupee plunged to record low against the US dollar following sharp correction in the stock exchanges and demand from importers. The partially convertible rupee was at 52.68, down 0.65 paise or 1.25 per cent against previous close of 52.03 per dollar.
The market is likely to take cues from monthly inflation figures and the Reserve Bank of India's policy review meet later this week, say dealers.
According to Nomura, the Reserve Bank of India is going to keep the interest rates unchanged to contain inflation.
From a policy perspective, although economic activity is likely to weaken in the months ahead, we believe inflation will remain the Reserve Bank of India's primary concern. We expect core inflation to remain high in November, hence we expect the RBI to stay on hold at its 16 December meeting.
The Sensex ended at 15870.35, down 343.11 points or 2.12 per cent. The 30-share index touched intraday low of 15839.96 and high of 16360.32.
The National Stock Exchange's Nifty closed at 4764.60, down 102.10 points or 2.10 per cent. The broader index touched a high of 4910.25 and low of 4755.55 in trade today.
BSE Midcap Index was down 1.90 per cent and BSE Smallcap Index fell 1.54 per cent.
Amongst the sectoral indices, BSE Metal Index fell 4.14 per cent, BSE Bankex was down 2.98 per cent, BSE Oil&gas Index declined 2.80 per cent and BSE Realty Index moved 2.67 per cent lower. BSE IT Index was up 0.95 per cent.
Tata Power (-6.46%), Hindalco Industries (-6.37%), Jindal Steel (-5.14%), State Bank of India (-4.87%), and Jaiprakash Associates (-4.81%) were amongst the major Sensex losers.
Wipro (2.56%), Infosys Technologies (0.93%) and TCS (0.70%) were the only index gainers.
Shares of Essar Oil, Essar Shipping and Essar Ports plunged after the Central Bureau of Investigation filed charge-sheets against Ravi Ruia, Anshuman Ruia and Vikas Saraf in 2G case. Kiran and IP Khaitan are also named in the charge-sheet. Essar Oil was fell 10.89 per cent, Essar Ports plunged 7.71 per cent and Essar Shipping declined 9.73 per cent.
Market breadth was negative on the NSE with 798 gainers against 1943 losers.
The European markets were witnessing profit booking session after downgrade warnings of some of the euro-zone economies from rating agency Moody's. FTSE 100 was down 0.70 per cent, CAC 40 fell 0.88 per cent and DAX was 1.61 per cent lower. 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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