SENSEX 18289.35
+135.36
NIFTY 5564.30
+42.35
USD/INR 0049.38 +00.09
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UPDATEDTIME 09.28 PM 17 FEBRUARY 2012
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The National Stock
Exchange's Nifty closed in the positive terrain for seventh
consecutive week on the back of sustained inflows from foreign institutional
investors on hopes of cut in CRR rates and government's reform initiatives
ahead of Union Budget.
"It is essentially a liquidity-driven market. Over the last one and a half months we have seen about 4.5 billion in FII money and even the domestic institutions have been sellers. This deluge of FII inflow has clearly taken the market up. In addition to that there has been some better fundamental news flow as well. We have seen very clear announcement from the RBI about rate cuts. Secondly, even policy momentum has revived which is quite visible and what the government is trying to do in the power sector is also encouraging.
As per the provisional data, FIIs bought equities worth Rs 184.31 crore on Thursday. They have made purchases worth Rs 11611.84 crore so far this month surpassing the investments of Rs 10357.70 crore in January 2012.
The benchmarks opened on positive note following gains in the global markets as lower US jobless figures boosted sentiments. The Nifty hit 7-month high of 5600 levels but failed to hold on as profit booking emerged near resistance levels.
Analysts are of the view that concerns of recession in Europe still remain and a correction can't be ruled out as valuations are not cheap as they were in December. The Nifty has surged over 20 per cent since the beginning of 2012 outperforming its peers.
Indian valuations are beginning to come under a bit of pressure as they are no longer screamingly cheap as they were two months ago. We came into 2012 with a neutral recommendation on India because we thought that Indian stocks had gotten cheap enough that investors should no longer be underweight in that market. From here we find that Indian valuations at roughly 14 times forward earnings are effectively in line with long term averages and so that value proposition is not there. What we were going to need to open more head room for Indian stocks on a medium term basis is some earnings upgrades and for that we need monetary policy to start to loosen.
The Nifty ended at 5564.30, up 42.35 points or 0.77 per cent. The broader index touched an intraday high of 5606.70 and low of 5545.20.
The Bombay Stock Exchange's Sensex closed at 18289.35, up 135.36 points or 0.75 per cent. It touched intraday high of 18423.06 and low of 18234.56.
Traders should take profits on their trading positions. Investors can hold on but markets do correct fairly viciously. A good re-entry point will come in around 5200-5300. It is always good to create some cash and wait for opportunities.
BSE Midcap Index was down 0.05 per cent and BSE Smallcap Index slipped 0.21 per cent.
Amongst the sectoral indices, BSE Power Index was up 2.92 per cent, BSE Capital Goods Index gained 1.51 per cent and BSE IT Index moved 1.42 per cent higher. BSE Auto Index was down 0.53 per cent.
"It is essentially a liquidity-driven market. Over the last one and a half months we have seen about 4.5 billion in FII money and even the domestic institutions have been sellers. This deluge of FII inflow has clearly taken the market up. In addition to that there has been some better fundamental news flow as well. We have seen very clear announcement from the RBI about rate cuts. Secondly, even policy momentum has revived which is quite visible and what the government is trying to do in the power sector is also encouraging.
As per the provisional data, FIIs bought equities worth Rs 184.31 crore on Thursday. They have made purchases worth Rs 11611.84 crore so far this month surpassing the investments of Rs 10357.70 crore in January 2012.
The benchmarks opened on positive note following gains in the global markets as lower US jobless figures boosted sentiments. The Nifty hit 7-month high of 5600 levels but failed to hold on as profit booking emerged near resistance levels.
Analysts are of the view that concerns of recession in Europe still remain and a correction can't be ruled out as valuations are not cheap as they were in December. The Nifty has surged over 20 per cent since the beginning of 2012 outperforming its peers.
Indian valuations are beginning to come under a bit of pressure as they are no longer screamingly cheap as they were two months ago. We came into 2012 with a neutral recommendation on India because we thought that Indian stocks had gotten cheap enough that investors should no longer be underweight in that market. From here we find that Indian valuations at roughly 14 times forward earnings are effectively in line with long term averages and so that value proposition is not there. What we were going to need to open more head room for Indian stocks on a medium term basis is some earnings upgrades and for that we need monetary policy to start to loosen.
The Nifty ended at 5564.30, up 42.35 points or 0.77 per cent. The broader index touched an intraday high of 5606.70 and low of 5545.20.
The Bombay Stock Exchange's Sensex closed at 18289.35, up 135.36 points or 0.75 per cent. It touched intraday high of 18423.06 and low of 18234.56.
Traders should take profits on their trading positions. Investors can hold on but markets do correct fairly viciously. A good re-entry point will come in around 5200-5300. It is always good to create some cash and wait for opportunities.
BSE Midcap Index was down 0.05 per cent and BSE Smallcap Index slipped 0.21 per cent.
Amongst the sectoral indices, BSE Power Index was up 2.92 per cent, BSE Capital Goods Index gained 1.51 per cent and BSE IT Index moved 1.42 per cent higher. BSE Auto Index was down 0.53 per cent.
Power and capital goods space were the top sectoral performers. BHEL,
Larsen & Toubro and BGR Energy rallied after reports that NTPC plans
to award Rs 22,000 crore equipment orders after winning legal battle in Supreme
Court against Ansaldo Caldaie India.
Power stocks have been witnessing buying momentum for the past few sessions after the government asked Coal India to sign a 20-year guaranteed coal supply contract with power producers
BHEL (6.48%), Tata Power (4.39%) Axis Bank (4.35%), Siemens (3.95%) and Mahindra & Mahindra (3.56%) were the major Nifty gainers.
Hero MotoCorp (-3.93%), Sesa Goa (-3.66%), Maruti Suzuki (-2.57%), Reliance Infrastructure (-2.13%), andHindalco Industries (-2.01%) were amongst the losers.
Market breadth was positive on the NSE with 539 gainers against 632 losers.
(The market will remain closed on February 20,2012 on account of Mahashivratri)
Power stocks have been witnessing buying momentum for the past few sessions after the government asked Coal India to sign a 20-year guaranteed coal supply contract with power producers
BHEL (6.48%), Tata Power (4.39%) Axis Bank (4.35%), Siemens (3.95%) and Mahindra & Mahindra (3.56%) were the major Nifty gainers.
Hero MotoCorp (-3.93%), Sesa Goa (-3.66%), Maruti Suzuki (-2.57%), Reliance Infrastructure (-2.13%), andHindalco Industries (-2.01%) were amongst the losers.
Market breadth was positive on the NSE with 539 gainers against 632 losers.
(The market will remain closed on February 20,2012 on account of Mahashivratri)
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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