SENSEX 17748.69
-82.06
NIFTY 5381.60
-30.75
USD/INR 0049.60 +00.16
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UPDATEDTIME 09.28 PM 10 FEBRUARY 2012
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The
National Stock Exchange's Nifty failed to hold on to 5400 levels and
closed in the red as sentiments turned bearish following lower-than-expected
Index of Industrial Production figures for December 2011 and weak European
markets.
Industrial production grew by 1.8 per cent in December 2011, due to contraction in mining and capital goods sectors and a lower manufacturing sector growth, against 5.95% in November 2011. IIP was at 8.1 per cent in December 2010.
Reacting to the dismal factory output numbers, Finance Minister Pranab Mukherjee said that the figures would show some improvement in the coming months.
Meanwhile, analysts are of the view that the Reserve Bank of India would not cut interest rates till the desired level of inflation is achieved.
RBI's policy stance would tend to be guided more by the developments on inflation, which though on a decline in food products has to stabilize to make the RBI change its stance. Further, the core inflation rate has not moderated as desired by the RBI. Therefore, the RBI would not cut interest rates till the desired levels of inflation and stability in exchange rate is attained.
The Government has revised its growth projection for 2011-12 to 6.9%. We expect the growth momentum to remain subdued even in the coming months on the back of slowing industrial activities, low business sentiment coupled with sluggish investments climate.
India's inflation for the month of January is expected be around 6.60 per cent from 7.47 percent a month ago, said Reuters poll.
The Sensex ended at 17748.69, down 109.02 points or 0.61 per cent. The 30-share index touched a high of 17890.11 and low of 17627.14 in trade today.
The National Stock Exchange's Nifty closed at 5381.60, down 30.75 points or 0.57 per cent. The broader index touched a high of 5427.75 and low of 5341.05 intraday.
In case the market breaks down decisively below 5320-5330 then may be bit of a correction may start. If we continue to remain in this 5330 to about 5400 type of band then may be after some more sideways action the market will again make an attempt for the upside. So far, it is just mild letting off steam, nothing serious. This is just a pause and hopefully given the strength of the trend it should resolve on the upside.
BSE Midcap Index was up 0.11 per cent and BSE Smallcap Index edged 0.02 per cent lower.
Amongst the sectoral indices, BSE Realty Index declined 0.93 per cent, BSE Oil&gas Index moved 0.80 per cent lower, BSE Healthcare Index was down 0.71 per cent and BSE Bankex slipped 0.68 per cent. BSE Metal Index was up 0.58 per cent.
Tata Steel (5.12%), SAIL (3.72%), Bajaj Auto (2.25%), Sesa Goa (2.05%) and HCL Tech (1.19%) were amongst the gainers pack.
Industrial production grew by 1.8 per cent in December 2011, due to contraction in mining and capital goods sectors and a lower manufacturing sector growth, against 5.95% in November 2011. IIP was at 8.1 per cent in December 2010.
Reacting to the dismal factory output numbers, Finance Minister Pranab Mukherjee said that the figures would show some improvement in the coming months.
Meanwhile, analysts are of the view that the Reserve Bank of India would not cut interest rates till the desired level of inflation is achieved.
RBI's policy stance would tend to be guided more by the developments on inflation, which though on a decline in food products has to stabilize to make the RBI change its stance. Further, the core inflation rate has not moderated as desired by the RBI. Therefore, the RBI would not cut interest rates till the desired levels of inflation and stability in exchange rate is attained.
The Government has revised its growth projection for 2011-12 to 6.9%. We expect the growth momentum to remain subdued even in the coming months on the back of slowing industrial activities, low business sentiment coupled with sluggish investments climate.
India's inflation for the month of January is expected be around 6.60 per cent from 7.47 percent a month ago, said Reuters poll.
The Sensex ended at 17748.69, down 109.02 points or 0.61 per cent. The 30-share index touched a high of 17890.11 and low of 17627.14 in trade today.
The National Stock Exchange's Nifty closed at 5381.60, down 30.75 points or 0.57 per cent. The broader index touched a high of 5427.75 and low of 5341.05 intraday.
In case the market breaks down decisively below 5320-5330 then may be bit of a correction may start. If we continue to remain in this 5330 to about 5400 type of band then may be after some more sideways action the market will again make an attempt for the upside. So far, it is just mild letting off steam, nothing serious. This is just a pause and hopefully given the strength of the trend it should resolve on the upside.
BSE Midcap Index was up 0.11 per cent and BSE Smallcap Index edged 0.02 per cent lower.
Amongst the sectoral indices, BSE Realty Index declined 0.93 per cent, BSE Oil&gas Index moved 0.80 per cent lower, BSE Healthcare Index was down 0.71 per cent and BSE Bankex slipped 0.68 per cent. BSE Metal Index was up 0.58 per cent.
Tata Steel (5.12%), SAIL (3.72%), Bajaj Auto (2.25%), Sesa Goa (2.05%) and HCL Tech (1.19%) were amongst the gainers pack.
Hindalco
Industries (-4.34%), Ambuja Cements (-4.04%), Reliance
Infrastructure (-3.97%), ACC (-3.66%) andIDFC (-3.19%) and
were the major Nifty losers.
Tata Steel posted
consolidated net loss of Rs 687 crore quarter ended December 2012, as against
net profit of Rs 949 crore in the same period last year. Consolidated net
sales, was at Rs 32,964 crore during ind December 2012 quarter as compared to
Rs 28,606 crore in the same period a year ago.
"The strong performance at the India business could not offset the dismal performance at the European operations, and consequently EBITDA at the consolidated level was 13.5% (Rs17.2bn) lower than our estimate of Rs 19.8bn. The company reported a net loss of Rs 6bn as against our expectations of a profit of Rs 1bn.
It is overweight on the stock and has a 12-month price target of Rs 522 per share.
Market breadth was negative on the NSE with 668 gainers against 821 losers.
Foreign institutional investors continued with their buying spree in the Indian markets. As per provisional data, they bought equities worth Rs 1200.66 crore on Thursday. The FIIs have pumped in around Rs 7893 crore in the last seven sessions alone.
The European markets were witnessing selling pressure on Greece's debt concerns. FTSE 100 was down 0.30 per cent, CAC 40 declined 0.76 per cent and DAX moved 0.85 per cent lower.
"The strong performance at the India business could not offset the dismal performance at the European operations, and consequently EBITDA at the consolidated level was 13.5% (Rs17.2bn) lower than our estimate of Rs 19.8bn. The company reported a net loss of Rs 6bn as against our expectations of a profit of Rs 1bn.
It is overweight on the stock and has a 12-month price target of Rs 522 per share.
Market breadth was negative on the NSE with 668 gainers against 821 losers.
Foreign institutional investors continued with their buying spree in the Indian markets. As per provisional data, they bought equities worth Rs 1200.66 crore on Thursday. The FIIs have pumped in around Rs 7893 crore in the last seven sessions alone.
The European markets were witnessing selling pressure on Greece's debt concerns. FTSE 100 was down 0.30 per cent, CAC 40 declined 0.76 per cent and DAX moved 0.85 per cent lower.
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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