SENSEX 17431.85
+131.27
NIFTY 5269.90
+34.20
USD/INR 0049.07 -00.05
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UPDATEDTIME 09.28 PM 02 FEBUARY 2012
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The Bombay
Stock Exchange's Sensex extended its winning streak for third straight
session as institutional investors with risk appetite continued to pump in
dollars in the Indian equities. Revival in manufacturing sector, quarterly
earnings and hopes of rate cuts by the Reserve Bank of India has been
driving investors to buy stocks available at attractive valuations.
The foreign institutional investors have invested over Rs 26,000 crore in January 2012. This is helping the Indian rupee to strengthen against the US dollar. The partially convertible rupee breached 49 per dollar mark earlier in the day to hit intraday high of 48.94 per dollar. It was later quoting at 49.13, up 13 paise against previous close of 49.26 per dollar.
Telecom sector was in focus in trade today after theSupreme Court cancelled 122 licences issued in 2008 by then telecom minister A Raja.
The apex court imposed a fine of Rs 4 crore on Videocon, Swan and Alliance Infratech, Rs 5 crore on Etisalat, Tata Telecom Tata and Uninor while, Loop, Essar, S-Tel and Systema have been fined Rs 50 lakh each. The Telecom Regulatory authority of India will now make fresh recommendations on the grant of licenses.
The telecom firms can operate the licences for four months by paying licence fees at market rate.
We expect that auction of 2G spectrum (~500MHz) would provide one more chance for the companies like Uninor, Sistema-Shyam, Tata Tele etc. which are still waiting to get spectrum in Delhi Circle. Further, we expect that players (Videocon, Loop etc.) who were earlier ready to give their spectrum back to government may make exit through this way, which will pave the much needed consolidation process expected in the telecom sector in near future.
Bigger incumbent players like Bharti Airtel, Vodafone etc. will be taking lead role in consolidation process in the sector and would benefit in the form of reduced competition that has been threatening their margins as they would have extended leeway in revising tariff rationally. We are positive on Bharti.
Bharti Airtel closed 6.88 per cent higher and Idea Cellular gained 2.68 per cent. Reliance Communications was down 3.54 per cent. Tata Teleservices Maharashtra was down 2.77 per cent, Unitech fell 7.04 per cent, DB Realty slipped 0.48 per cent and Videocon closed 0.92 per cent lower.
According to industry experts, the judgment is a big negative for the sector and the foreign investment in the country.
"It's a negative not only for the sector but a big negative on the foreign investments into the country. Need to see the details of the verdict but it is kind of unbelievable.
The foreign institutional investors have invested over Rs 26,000 crore in January 2012. This is helping the Indian rupee to strengthen against the US dollar. The partially convertible rupee breached 49 per dollar mark earlier in the day to hit intraday high of 48.94 per dollar. It was later quoting at 49.13, up 13 paise against previous close of 49.26 per dollar.
Telecom sector was in focus in trade today after theSupreme Court cancelled 122 licences issued in 2008 by then telecom minister A Raja.
The apex court imposed a fine of Rs 4 crore on Videocon, Swan and Alliance Infratech, Rs 5 crore on Etisalat, Tata Telecom Tata and Uninor while, Loop, Essar, S-Tel and Systema have been fined Rs 50 lakh each. The Telecom Regulatory authority of India will now make fresh recommendations on the grant of licenses.
The telecom firms can operate the licences for four months by paying licence fees at market rate.
We expect that auction of 2G spectrum (~500MHz) would provide one more chance for the companies like Uninor, Sistema-Shyam, Tata Tele etc. which are still waiting to get spectrum in Delhi Circle. Further, we expect that players (Videocon, Loop etc.) who were earlier ready to give their spectrum back to government may make exit through this way, which will pave the much needed consolidation process expected in the telecom sector in near future.
Bigger incumbent players like Bharti Airtel, Vodafone etc. will be taking lead role in consolidation process in the sector and would benefit in the form of reduced competition that has been threatening their margins as they would have extended leeway in revising tariff rationally. We are positive on Bharti.
Bharti Airtel closed 6.88 per cent higher and Idea Cellular gained 2.68 per cent. Reliance Communications was down 3.54 per cent. Tata Teleservices Maharashtra was down 2.77 per cent, Unitech fell 7.04 per cent, DB Realty slipped 0.48 per cent and Videocon closed 0.92 per cent lower.
According to industry experts, the judgment is a big negative for the sector and the foreign investment in the country.
"It's a negative not only for the sector but a big negative on the foreign investments into the country. Need to see the details of the verdict but it is kind of unbelievable.
There is
nothing wrong with the international players who have invested in the country.
They came with right intentions, they made investments and find licences being
cancelled.
The Sensex closed at 17431.85, up 131.27 points or 0.76 per cent. The 30-share index touched a high of 17504.25 and low of 17308.28 in trade today.
The National Stock Exchange's Nifty ended at 5269.90, up 34.20 points or 0.65 per cent. The broader index touched a high of 5289.95 and low of 5225.75 intraday.
Market seems to be entering a fairly high momentum phase. Now in this sort of a phase, it looks like we are jumping around a lot but we are not making any progress. Bank Nifty, it hit 9950 first day on the 24th of January and we are still hanging around those levels although activity seems to have heightened.
From here, I expect that there will be a lot of sideways action and it will be more profitable to buy on the decline and sell the rallies. Keep booking your profits because you may find that when everything is done in February we could still be where we are.
This sort of one way momentum is probably unsustainable and from the looks of it on its last legs.
BSE Midcap Index was up 0.55 per cent and BSE Smallcap Index moved 0.54 per cent higher.
Amongst the sectoral indices, BSE IT Index moved 1.53 per cent higher, BSE Metal Index gained 1.40 per cent, BSE Capital Goods Index was up 1.35 per cent and BSE Realty Index climbed 1.25 per cent. BSE Healthcare Index was down 0.62 per cent and BSE FMCG Index declined 0.26 per cent.
Bharti Airtel (6.88%), DLF (4.05%), Sterlite Industries (3.90%), Wipro (3.46%) and GAIL (3.15%) were the major Sensex gainers.
Cipla (-2.53%), ITC (-1.36%), Jindal Steel (-1.05%), Tata Motors (-0.99%) and Sun Pharmaceuticals (-0.86%) were the top losers.
Shares of State Bank of India recovered intraday losses after slipping nearly 5 per cent on concerns of exposure to the telecom sector.
Hexaware Technologies reported net profit of Rs 88.24 crore for quarter ended December 2011 as compared to Rs 36.90 crore in the same period a year ago. Income stood at Rs 431.88 crore as against Rs 299.62 crore in the corresponding quarter last fiscal. The stock ended at Rs 97.15, up 10.59 per cent on the NSE. It touched a high of Rs 99.90 and low of Rs 90.50 in trade today.
Market breadth was positive on the BSE with 1254 gainers against 1172 losers
The Sensex closed at 17431.85, up 131.27 points or 0.76 per cent. The 30-share index touched a high of 17504.25 and low of 17308.28 in trade today.
The National Stock Exchange's Nifty ended at 5269.90, up 34.20 points or 0.65 per cent. The broader index touched a high of 5289.95 and low of 5225.75 intraday.
Market seems to be entering a fairly high momentum phase. Now in this sort of a phase, it looks like we are jumping around a lot but we are not making any progress. Bank Nifty, it hit 9950 first day on the 24th of January and we are still hanging around those levels although activity seems to have heightened.
From here, I expect that there will be a lot of sideways action and it will be more profitable to buy on the decline and sell the rallies. Keep booking your profits because you may find that when everything is done in February we could still be where we are.
This sort of one way momentum is probably unsustainable and from the looks of it on its last legs.
BSE Midcap Index was up 0.55 per cent and BSE Smallcap Index moved 0.54 per cent higher.
Amongst the sectoral indices, BSE IT Index moved 1.53 per cent higher, BSE Metal Index gained 1.40 per cent, BSE Capital Goods Index was up 1.35 per cent and BSE Realty Index climbed 1.25 per cent. BSE Healthcare Index was down 0.62 per cent and BSE FMCG Index declined 0.26 per cent.
Bharti Airtel (6.88%), DLF (4.05%), Sterlite Industries (3.90%), Wipro (3.46%) and GAIL (3.15%) were the major Sensex gainers.
Cipla (-2.53%), ITC (-1.36%), Jindal Steel (-1.05%), Tata Motors (-0.99%) and Sun Pharmaceuticals (-0.86%) were the top losers.
Shares of State Bank of India recovered intraday losses after slipping nearly 5 per cent on concerns of exposure to the telecom sector.
Hexaware Technologies reported net profit of Rs 88.24 crore for quarter ended December 2011 as compared to Rs 36.90 crore in the same period a year ago. Income stood at Rs 431.88 crore as against Rs 299.62 crore in the corresponding quarter last fiscal. The stock ended at Rs 97.15, up 10.59 per cent on the NSE. It touched a high of Rs 99.90 and low of Rs 90.50 in trade today.
Market breadth was positive on the BSE with 1254 gainers against 1172 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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