SENSEX 16466.05 +276.69
NIFTY 4967.30
+93.40
USD/INR 0050.63 -00.73
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UPDATEDTIME 09.28 PM 17 JANUARY 2012
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The Bombay Stock Exchange's Sensex extended winning streak for
third straight session and closed near intermediate resistance levels as
positive economic data from China lifted sentiment across the global markets.
China's Gross Domestic Product grew 8.9 per cent in the fourth quarter, slower
than in the third quarter, but still exceeding analyst expectations.
Hopes of Reserve Bank of India easing monetary policy stance also provided support to the bulls. The RBI will hold monetary policy meet later this month in the backdrop of easing headline and food inflation. However, analysts are of the view that the central bank may keep the rates unchanged and not cut CRR as anticipated by a section of traders in the market.
The market discounted the recent downgrade of the euro zone's EFSF rescue fund by Standard & Poor's. The credit rating agency recently downgraded nine eurozone nations.
"It was a global movement today. The positive momentum was witnessed across all asset classes so strongly that it even completely discounted and did not think of any correction even on the news of downgrade of 9 sovereign credit ratings by S&P.
Though the market participants had feared that the December quarterly results will be bad, however, the indications that came from the initial results suggest that the results have been decent and nothing to fear. The sales growth and profitability appears to remain in a healthy zone.
Further, the headline inflation number dipping to two-year low levels of as low as 7.47%, has increased the hopes of the market that the RBI may reduce the interest rates and CRR in the upcoming monetary policy statement. Though, it should be also noted that lower inflation number is also partly due to the higher base effect.
The market opened on a positive note and continued to climb higher on the back of sustained buying activity across the board. Better-than-expected results from IT major HCL Technologies also kept the bulls busy.
The Sensex ended at 16466.05, up 276.69 points or 1.71 per cent. The 30-share index touched a high of 16501.38 and low of 16270.87 in trade today.
The National Stock Exchange's Nifty closed at 4967.30, up 93.40 points or 1.92 per cent. The broader index touched intraday high of 4975.55 and low of 4904.
"We are now getting into a phase of strong resistance and if 5100 is crossed then a lot of assumptions will need to be reworked. Probably from a bear market you would tend to move into a sideways market and on the verge of becoming bullish. Till that happens, the immediate upside remains about 100 points.
It is also important to note that today is the third 2% plus type of rally and generally three is a very funny number in the markets. Sometimes the third rally can turn out to be the last rally. May be in the next couple of days you will have some opportunity to book profits but so far longs can be held on to.
Hopes of Reserve Bank of India easing monetary policy stance also provided support to the bulls. The RBI will hold monetary policy meet later this month in the backdrop of easing headline and food inflation. However, analysts are of the view that the central bank may keep the rates unchanged and not cut CRR as anticipated by a section of traders in the market.
The market discounted the recent downgrade of the euro zone's EFSF rescue fund by Standard & Poor's. The credit rating agency recently downgraded nine eurozone nations.
"It was a global movement today. The positive momentum was witnessed across all asset classes so strongly that it even completely discounted and did not think of any correction even on the news of downgrade of 9 sovereign credit ratings by S&P.
Though the market participants had feared that the December quarterly results will be bad, however, the indications that came from the initial results suggest that the results have been decent and nothing to fear. The sales growth and profitability appears to remain in a healthy zone.
Further, the headline inflation number dipping to two-year low levels of as low as 7.47%, has increased the hopes of the market that the RBI may reduce the interest rates and CRR in the upcoming monetary policy statement. Though, it should be also noted that lower inflation number is also partly due to the higher base effect.
The market opened on a positive note and continued to climb higher on the back of sustained buying activity across the board. Better-than-expected results from IT major HCL Technologies also kept the bulls busy.
The Sensex ended at 16466.05, up 276.69 points or 1.71 per cent. The 30-share index touched a high of 16501.38 and low of 16270.87 in trade today.
The National Stock Exchange's Nifty closed at 4967.30, up 93.40 points or 1.92 per cent. The broader index touched intraday high of 4975.55 and low of 4904.
"We are now getting into a phase of strong resistance and if 5100 is crossed then a lot of assumptions will need to be reworked. Probably from a bear market you would tend to move into a sideways market and on the verge of becoming bullish. Till that happens, the immediate upside remains about 100 points.
It is also important to note that today is the third 2% plus type of rally and generally three is a very funny number in the markets. Sometimes the third rally can turn out to be the last rally. May be in the next couple of days you will have some opportunity to book profits but so far longs can be held on to.
BSE Midcap Index was up 1.34 per cent and BSE Smallcap Index gained 1.07
per cent.
Amongst the sectoral indices, BSE Capital Goods Index moved 3.73 per cent higher, BSE Metal Index was up 3.66 per cent, BSE Realty Index gained 3.46 per cent and BSE Oil&gas Index was up 2.79 per cent.
Maruti Suzuki (10.11%), Hindalco Industries (5.47%),Jaiprakash Associates (5.40%), Larsen & Toubro (5.10%), Tata Steel (4.98%) and HCL Tech (4.73%) were the major Nifty gainers.
Maruti Suzuki has increased the prices of various models to offset rising input costs and the impact of currency fluctuation. The company has hiked prices of its vehicles across models, except for entry-level sedan DZire, by between 0.3 per cent and 3.4 per cent.
HCL Technologies reported standalone net profit of Rs 493.97 crore for quarter ended December 2011 against Rs 397.55 crore a quarter ago. Net sales were at Rs 2191.18 crore as compared to Rs 1979.22 crore previous quarter.
HCL Technologies reported 2% QoQ increase in revenues, volume growth of 4.9%, 3.7% constant currency growth. EBIT margin expansion was 150bps. The results were above the expectations.
However, the decline in infrastructure was a surprise. That said, HCL Technologies' signing up of >$1bn deals could explain focus on deal wins in the quarter, whilst the management commentary on December shut downs has likely impacted the "keep the lights on" Infra business more than others.
Margin improvement and strong free cash flow generation (70% cash conversion) are substantial positives for a stock not famous for FCF generation amongst peers.
The brokerage has a 'Buy' recommendation on the stock with target price of Rs 534 per share.
Ranbaxy Laboratories (-0.92%), ICICI Bank (-0.83%), GAIL (-0.52%), Tata Consultancy Services (-0.37%), Dr Reddy's Laboratories (-0.19%) and ITC (-0.02%) were the only index losers.
Market breadth was positive on the NSE with 1049 gainers against 441 losers.
Amongst the sectoral indices, BSE Capital Goods Index moved 3.73 per cent higher, BSE Metal Index was up 3.66 per cent, BSE Realty Index gained 3.46 per cent and BSE Oil&gas Index was up 2.79 per cent.
Maruti Suzuki (10.11%), Hindalco Industries (5.47%),Jaiprakash Associates (5.40%), Larsen & Toubro (5.10%), Tata Steel (4.98%) and HCL Tech (4.73%) were the major Nifty gainers.
Maruti Suzuki has increased the prices of various models to offset rising input costs and the impact of currency fluctuation. The company has hiked prices of its vehicles across models, except for entry-level sedan DZire, by between 0.3 per cent and 3.4 per cent.
HCL Technologies reported standalone net profit of Rs 493.97 crore for quarter ended December 2011 against Rs 397.55 crore a quarter ago. Net sales were at Rs 2191.18 crore as compared to Rs 1979.22 crore previous quarter.
HCL Technologies reported 2% QoQ increase in revenues, volume growth of 4.9%, 3.7% constant currency growth. EBIT margin expansion was 150bps. The results were above the expectations.
However, the decline in infrastructure was a surprise. That said, HCL Technologies' signing up of >$1bn deals could explain focus on deal wins in the quarter, whilst the management commentary on December shut downs has likely impacted the "keep the lights on" Infra business more than others.
Margin improvement and strong free cash flow generation (70% cash conversion) are substantial positives for a stock not famous for FCF generation amongst peers.
The brokerage has a 'Buy' recommendation on the stock with target price of Rs 534 per share.
Ranbaxy Laboratories (-0.92%), ICICI Bank (-0.83%), GAIL (-0.52%), Tata Consultancy Services (-0.37%), Dr Reddy's Laboratories (-0.19%) and ITC (-0.02%) were the only index losers.
Market breadth was positive on the NSE with 1049 gainers against 441 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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