SENSEX 16451.47 -14.58
NIFTY 4955.80
-11.50
USD/INR 0050.63 -00.73
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UPDATEDTIME 09.28 PM 18 JANUARY 2012
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The Bombay Stock Exchange's Sensex ended its three-day winning
streak as investors booked profits after a rally in previous session. Weak cues
from global peers also kept bulls on the sidelines. Gains in oil & gas
space, led by Reliance Industries, were offset by profit booking in technology and
metals space.
Reliance Industries (RIL) regained its top spot of index heavy-weight on the Sensex following company's plans to announce on Friday.
The last time RIL had announced a buyback was in 2004, some seven years ago. Based on the observations of previous buyback programme, Jagannadham Thunuguntla, Strategist & Head of Research, assumes that "the maximum buyback price may be fixed at about Rs 850 per share. However, the company may choose the maximum buyback price in the range of Rs 850 - Rs 900 per share."
"Whatever may be the company's announcement, it is reasonable to expect that this will be largest ever buyback program in the history of Indian capital market. Also, this buyback announcement will be a strong statement from the company's management that they "feel" currently the share price in the market is undervalued than the intrinsic worth.
However, the gains in index heavy-weight RIL failed to lift the benchmarks as selling pressure was seen in IT heavyweights after quarterly earnings report from Tata Consultancy Services (TCS).
According to analysts, the growth has been good across verticals. However, the commentary on future projects and slowing revenue growth outlook will act as deterrent.
"TCS results were largely in line with estimates; margin improvement was lower than our expectations. Management commentary was more cautious than it has been in the recent past. The IT major trades at premium valuations (~17x FY13E) and needs positive surprises/upgrades for the stock to perform," said Citigroup note. The FII has a 'Neutral' rating on the stock.
The Sensex closed at 16451.47, down 14.58 points or 0.09 per cent. The 30-share index touched intraday high of 16517.96 and low of 16384.48.
The National Stock Exchange's Nifty ended at 4955.80, down 11.50 points or 0.23 per cent. The broader index touched a high of 4980.65 and low of 4931.05 in trade today.
"The pre-budget rally that we probably were talking about is probably underway at the moment. It has played out a good course in my opinion aided by good FIIs inflows. Positive news on the economic front whether inflation, food inflation or possibly a cut by the RBI in the offing and maybe some reforms possibly during the time of the budget have played their role.
This rally possibly at best probably could be 5100 on the upper side but after that I still see that it should peter out and it should peter out sooner than later.
BSE Midcap Index was down 1.16 per cent and BSE Smallcap Index moved 1 per cent lower.
Amongst the sectoral indices, BSE Metal Index was down 2.19 per cent, BSE IT Index slipped 2.16 per cent and BSE Capital Goods Index declined 2.04 per cent. BSE Oil&gas Index was up 3.12 per cent and BSE Realty Index moved 0.61 per cent higher.
Tata Steel (-4.05%) Coal India (-3.22%), Mahindra & Mahindra (-2.84%), BHEL (-2.78%), Wipro (-2.70%) andTCS (-2.62%) were the major Sensex losers.
Reliance Industries (4.94%), HDFC Bank (2.79%), ONGC (2.39%), Hero MotoCorp (1.67%) and DLF (1.57%) were the major gainers.
Essar Oil plunged to 52-week low after reports that the Supreme Court has rejected the company's contention that it was entitled to make deferred payment of tax on sales from its Vadinar refinery in the state. Essar Oil would have to quickly deposit sales tax of Rs 6,300 crore to the Gujarat government.
The stock pulled-back after hitting one-year low of Rs 44.80 to close 11.53 per cent lower at Rs 51.40 on the BSE.
Market breadth was negative on the BSE with 1086 gainers against 1702 losers.
Reliance Industries (RIL) regained its top spot of index heavy-weight on the Sensex following company's plans to announce on Friday.
The last time RIL had announced a buyback was in 2004, some seven years ago. Based on the observations of previous buyback programme, Jagannadham Thunuguntla, Strategist & Head of Research, assumes that "the maximum buyback price may be fixed at about Rs 850 per share. However, the company may choose the maximum buyback price in the range of Rs 850 - Rs 900 per share."
"Whatever may be the company's announcement, it is reasonable to expect that this will be largest ever buyback program in the history of Indian capital market. Also, this buyback announcement will be a strong statement from the company's management that they "feel" currently the share price in the market is undervalued than the intrinsic worth.
However, the gains in index heavy-weight RIL failed to lift the benchmarks as selling pressure was seen in IT heavyweights after quarterly earnings report from Tata Consultancy Services (TCS).
According to analysts, the growth has been good across verticals. However, the commentary on future projects and slowing revenue growth outlook will act as deterrent.
"TCS results were largely in line with estimates; margin improvement was lower than our expectations. Management commentary was more cautious than it has been in the recent past. The IT major trades at premium valuations (~17x FY13E) and needs positive surprises/upgrades for the stock to perform," said Citigroup note. The FII has a 'Neutral' rating on the stock.
The Sensex closed at 16451.47, down 14.58 points or 0.09 per cent. The 30-share index touched intraday high of 16517.96 and low of 16384.48.
The National Stock Exchange's Nifty ended at 4955.80, down 11.50 points or 0.23 per cent. The broader index touched a high of 4980.65 and low of 4931.05 in trade today.
"The pre-budget rally that we probably were talking about is probably underway at the moment. It has played out a good course in my opinion aided by good FIIs inflows. Positive news on the economic front whether inflation, food inflation or possibly a cut by the RBI in the offing and maybe some reforms possibly during the time of the budget have played their role.
This rally possibly at best probably could be 5100 on the upper side but after that I still see that it should peter out and it should peter out sooner than later.
BSE Midcap Index was down 1.16 per cent and BSE Smallcap Index moved 1 per cent lower.
Amongst the sectoral indices, BSE Metal Index was down 2.19 per cent, BSE IT Index slipped 2.16 per cent and BSE Capital Goods Index declined 2.04 per cent. BSE Oil&gas Index was up 3.12 per cent and BSE Realty Index moved 0.61 per cent higher.
Tata Steel (-4.05%) Coal India (-3.22%), Mahindra & Mahindra (-2.84%), BHEL (-2.78%), Wipro (-2.70%) andTCS (-2.62%) were the major Sensex losers.
Reliance Industries (4.94%), HDFC Bank (2.79%), ONGC (2.39%), Hero MotoCorp (1.67%) and DLF (1.57%) were the major gainers.
Essar Oil plunged to 52-week low after reports that the Supreme Court has rejected the company's contention that it was entitled to make deferred payment of tax on sales from its Vadinar refinery in the state. Essar Oil would have to quickly deposit sales tax of Rs 6,300 crore to the Gujarat government.
The stock pulled-back after hitting one-year low of Rs 44.80 to close 11.53 per cent lower at Rs 51.40 on the BSE.
Market breadth was negative on the BSE with 1086 gainers against 1702 losers.
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
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