SENSEX 17622.45 -84.86
NIFTY 5335.15
-26.50
USD/INR 0049.20 +00.14
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UPDATEDTIME 09.28 PM 06 FEBRUARY 2012
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The National Stock Exchange's Nifty snapped its five-day winning streak
and closed in the negative terrain due to lack of supportive cues from global
peers and as traders booked profits after the index hit important resistance
levels.
The benchmark had opened with a gap-up and breached 5400 level in early trade. However, it failed to hold on to higher levels and the gains tapered down as the session progressed. The release of GDP estimates by the government for the current financial year also failed to drive the market. The weak opening of European markets pushed the bulls on the back foot and indices slipped in the red.
India's FY12 GDP has been estimated at 6.9 per cent, slowest growth in three years, as against 8.4 per cent a year ago. Manufacturing sector growth is seen at 3.9 per cent vs 7.6 per cent a year ago, construction sector growth seen at 4.8 per cent vs 8 per cent a year ago and mining growth is seen at -2.2 per cent vs 5 per cent a year ago.
"It is now certain that the government would be unable to meet the fiscal deficit target set out in the FY12 budget of 4.6% of GDP. Although, the government had envisaged borrowing to the tune of Rs.4.17 trillion for the fiscal, owing to revenue and disinvestment short falls and increases in expenditure the government announced additional borrowing to the tune of Rs 90,000 crore, taking total borrowing for the year to Rs.5.07 trillion.
Going by the advance estimates of GDP at market prices for 2011-12, the fiscal deficit for 2011-12 now works out to 5.68% of GDP.
Based on the present conditions and growth levels, it is expected under conditions of stable inflation at 5%, cautious fiscal deficit with some incentives for investment, lowering of interest rates by 100-150 bps during the year, GDP growth could gradually move towards 7.5% in FY13," the report added.
Meanwhile, the Finance Minister, Pranab Mukherjee will table the Union Budget for 2012-13 in the Lok Sabha on March 16, 2012. The rail budget will be presented on March 14 and the Economic Survey will be tabled on March 15.
The Nifty ended at 5335.15, down 26.50 points or 0.49 per cent. The broader index touched a high of 5413.35 and low of 5322.95 intraday.
The Bombay Stock Exchange's Sensex closed at 17622.45, down 84.86 points or 0.48 per cent. The 30-share index touched a high of 17832.04 and low of 17582.49 in trade today.
According to analysts, the markets are in an overbought zone after the foreign institutional investors pumped in dollars in the Indian markets. As per the provisional data, FIIs bought equities around Rs 5690 crore this month alone.
They have been anticipating a correction after the sharp rally and are advising traders to avoid fresh buying at current levels and lighten their positions.
"We have been in this 5330 to 5380 type of range. If we start sustaining below 5330 some kind of a correction is likely to start. It looks unlikely that anything will go past the 4550 bottom
The benchmark had opened with a gap-up and breached 5400 level in early trade. However, it failed to hold on to higher levels and the gains tapered down as the session progressed. The release of GDP estimates by the government for the current financial year also failed to drive the market. The weak opening of European markets pushed the bulls on the back foot and indices slipped in the red.
India's FY12 GDP has been estimated at 6.9 per cent, slowest growth in three years, as against 8.4 per cent a year ago. Manufacturing sector growth is seen at 3.9 per cent vs 7.6 per cent a year ago, construction sector growth seen at 4.8 per cent vs 8 per cent a year ago and mining growth is seen at -2.2 per cent vs 5 per cent a year ago.
"It is now certain that the government would be unable to meet the fiscal deficit target set out in the FY12 budget of 4.6% of GDP. Although, the government had envisaged borrowing to the tune of Rs.4.17 trillion for the fiscal, owing to revenue and disinvestment short falls and increases in expenditure the government announced additional borrowing to the tune of Rs 90,000 crore, taking total borrowing for the year to Rs.5.07 trillion.
Going by the advance estimates of GDP at market prices for 2011-12, the fiscal deficit for 2011-12 now works out to 5.68% of GDP.
Based on the present conditions and growth levels, it is expected under conditions of stable inflation at 5%, cautious fiscal deficit with some incentives for investment, lowering of interest rates by 100-150 bps during the year, GDP growth could gradually move towards 7.5% in FY13," the report added.
Meanwhile, the Finance Minister, Pranab Mukherjee will table the Union Budget for 2012-13 in the Lok Sabha on March 16, 2012. The rail budget will be presented on March 14 and the Economic Survey will be tabled on March 15.
The Nifty ended at 5335.15, down 26.50 points or 0.49 per cent. The broader index touched a high of 5413.35 and low of 5322.95 intraday.
The Bombay Stock Exchange's Sensex closed at 17622.45, down 84.86 points or 0.48 per cent. The 30-share index touched a high of 17832.04 and low of 17582.49 in trade today.
According to analysts, the markets are in an overbought zone after the foreign institutional investors pumped in dollars in the Indian markets. As per the provisional data, FIIs bought equities around Rs 5690 crore this month alone.
They have been anticipating a correction after the sharp rally and are advising traders to avoid fresh buying at current levels and lighten their positions.
"We have been in this 5330 to 5380 type of range. If we start sustaining below 5330 some kind of a correction is likely to start. It looks unlikely that anything will go past the 4550 bottom
It will be a
sharp correction where at lower levels the market would like to see fresh
buying coming in, new hands need to come into the market. A 800 points rally
demands 50 per cent correction. Now 50 per cent may or may not come but at
least it has to be something more substantial than what we have seen for the
last couple of days. So at higher levels people should lighten commitments.
BSE Midcap Index was down 0.81 per cent and BSE Smallcap Index slipped 0.44 per cent.
Amongst the sectoral indices, BSE Capital Goods Index was down 2.29 per cent, BSE Realty Index slipped 2.10 per cent and BSE Power Index declined 1.98 per cent. BSE Oil&gas Index moved up 0.88 per cent, BSE Bankex gained 0.56 per cent and BSE FMCG Index moved 0.28 per cent higher.
Kotak Bank (2.63%), Cairn India (2.45%), ITC (1.51%), Reliance Industries (1.47%) and Ranbaxy Laboratories (1.40%) were the major Nifty gainers.
BHEL (-4.64%), Jaiprakash Associates (-4.32%),Tata Steel (-3.76%), Reliance Communications (-3.34%) and Mahindra & Mahindra (-3.27%) were the major losers.
Mahindra & Mahindra reported consolidated net profit of Rs 705.94 crore for quarter ended December 31, 2011 as compared to Rs 608.49 crore in the same period a year ago. Total income increased to Rs 8256.34 crore December 2011 quarter from Rs 6175.66 crore in the same quarter last fiscal.
Foreign institutional investors bought equities around Rs 5690 crore in the Indian market in February itself.
Shares of airline companies surged higher on reports that the GoM on aviation has cleared proposal for allowing airlines to import aviation fuel. The proposal is to be presented to the cabinet which will need to approve direct import of ATF by the airlines.
Jet Airways rallied 14.48 per cent, Kingfisher Airlines surged 13.20 per cent and SpiceJet gained 10.98 per cent on the BSE.
Market breadth was negative on the NSE with 401 gainers against 742 losers.Regards
BSE Midcap Index was down 0.81 per cent and BSE Smallcap Index slipped 0.44 per cent.
Amongst the sectoral indices, BSE Capital Goods Index was down 2.29 per cent, BSE Realty Index slipped 2.10 per cent and BSE Power Index declined 1.98 per cent. BSE Oil&gas Index moved up 0.88 per cent, BSE Bankex gained 0.56 per cent and BSE FMCG Index moved 0.28 per cent higher.
Kotak Bank (2.63%), Cairn India (2.45%), ITC (1.51%), Reliance Industries (1.47%) and Ranbaxy Laboratories (1.40%) were the major Nifty gainers.
BHEL (-4.64%), Jaiprakash Associates (-4.32%),Tata Steel (-3.76%), Reliance Communications (-3.34%) and Mahindra & Mahindra (-3.27%) were the major losers.
Mahindra & Mahindra reported consolidated net profit of Rs 705.94 crore for quarter ended December 31, 2011 as compared to Rs 608.49 crore in the same period a year ago. Total income increased to Rs 8256.34 crore December 2011 quarter from Rs 6175.66 crore in the same quarter last fiscal.
Foreign institutional investors bought equities around Rs 5690 crore in the Indian market in February itself.
Shares of airline companies surged higher on reports that the GoM on aviation has cleared proposal for allowing airlines to import aviation fuel. The proposal is to be presented to the cabinet which will need to approve direct import of ATF by the airlines.
Jet Airways rallied 14.48 per cent, Kingfisher Airlines surged 13.20 per cent and SpiceJet gained 10.98 per cent on the BSE.
Market breadth was negative on the NSE with 401 gainers against 742 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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