SENSEX 17587.67
+84.43
NIFTY 5359.55
+26.00
USD/INR 0049.93 +00.18
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UPDATEDTIME 09.28 PM 12 MARCH 2012
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The
National Stock Exchange's Nifty ended a choppy session in the positive terrain
led by gains in capital goods, realty, banks and auto space after the Reserve
Bank of India cut cash reserve ratio by 75 basis points and released additional
Rs 48,000 crore into the system.
According to analysts, the foreign institutional investors are cautious ahead of the Union Budget and the market is likely to remain choppy for the rest of the week. The benchmarks, which had a gap-up opening following RBI's CRR cut, pared most of the early gains due to lack of buying conviction and turned rangebound.
Strong index of industrial production data also failed to lift sentiments. India's IIP for the month of January 2012 grew at 6.8 per cent versus 2.5 per cent in December 2011. Manufacturing grew at 8.5 per cent vs 1.8 per cent a month ago while capital goods space showed contraction of 1.5 per cent vs contraction of 16.5 per cent in December 2011.
"The overall number is encouraging. It shows that perhaps industrial production is picking up and we may expect to see slightly improved behaviour in the month of February and March. In that sense the January number is encouraging, but the composition of the index of industrial production, particularly the growth rates in some of the sectors, is not very encouraging.
The capital goods sector is still not doing well. It is still negative and the intermediate goods sector is also showing a negative growth, but the big push has come as a result of the consumer non-durables.
Reacting to the IIP data, Finance Minister Pranab Mukherjee said, there is strong recovery in the backdrop of last December's figure where IIP grew by 2.8 per cent.
Analysts are of the view following the strong IIP figures; the RBI may not tinker with interest rates at its policy meet later this week.
A rate cut in March is certainly out of the question due to the latest industrial output number and the high powered money injected through the cash reserve ratio cut on Friday.
Meanwhile, the Budget Session began with a joint address by President Pratibha Patil. She said the economy is likely to stabilise soon with 8-9 per cent growth path.
Speaking to reporters ahead of the start of Budget Session, Prime Minister Manmohan Singh said that the government has all the numbers and the session would run smoothly. He added that government was willing to discuss and debate all issues on the floor of the house.
It depends on whether the budget is likely to be populist or growth oriented budget. Essentially we are hoping that it is going to be more reformist one with larger outlay to capital spending and some amount of rationalisation on the subsidy. If that comes through, it should be considered to be a positive budget.
Nevertheless we do expect that it is not likely to trigger a bull run because our central theme is that the disposable income for the household is likely to undergo a certain amount of slowdown because of increase in excise duty, reduction in subsidy and also slower growth as far as transfers are concerned.
There is a certain amount of adverse impact that the budget could have with respect to consumption demand.
From a longer term standpoint, if you have a certain tough budget, which looks at fiscal correction, it should be considered to be a positive budget. Odds are also there populism measures could eventually creep in and the imbalances are likely to accentuate. I would consider that to be a negative for the markets and for the earnings outlook.
The Nifty ended at 5359.55, up 26 points or 0.49 per cent. The broader index touched a high of 5421.90 and low of 5327.30 in trade today.
The Bombay Stock Exchange's Sensex ended at 17587.67, up 84.43 points or 0.48 per cent. It touched intraday high of 17772.10 and low of 17494.65.
"The market will remain choppy where you will have intraday rallies and intraday declines. Even global markets are not showing a whole lot of strength. So it would be better to have a shorter term horizon, do not carry overnight positions etc as you now have two days before events.
I would like to buy on dips but would not be too keen on chasing this market as it will have sudden dips for no apparent reason. You have to be cautious going forward.
Yes trade long, do not trade short but try to keep taking profits. I took my profits before the close and going home flat. Maybe we will get another dip towards 5350-5340, that would be again a buying opportunity. Look at more sideways than big trending moves, although individual stocks could outperform.
BSE Midcap Index gained 1.06 per cent and BSE Smallcap Index moved 0.70 per cent higher.
Amongst the sectoral indices, BSE Capital Goods Index moved 2.56 per cent higher, BSE Realty Index gained 1.33 per cent, BSE Oil&gas Index advanced 1.24 per cent, BSE Bankex moved 1.22 per cent higher and BSE Metal Index was up 0.92 per cent. BSE IT Index was down 1.06 per cent.
State Bank of India (3.72%), Larsen & Toubro (3.36%), Reliance Industries (3%), Siemens (2.60%) and Reliance Power (2.75%) were the major Nifty gainers.
Mahindra & Mahindra (-2.12%), ONGC (-1.96%), TCS (-1.90%), Cipla (-1.61%) HDFC (-1.49%) were the major losers.
Shares of M&M continued to slip lower after the company cut tractor production for 4-5days during March 2012 on account of a slowdown in demand.
Market breadth was positive on the NSE with 632 gainers against 378 losers.
According to analysts, the foreign institutional investors are cautious ahead of the Union Budget and the market is likely to remain choppy for the rest of the week. The benchmarks, which had a gap-up opening following RBI's CRR cut, pared most of the early gains due to lack of buying conviction and turned rangebound.
Strong index of industrial production data also failed to lift sentiments. India's IIP for the month of January 2012 grew at 6.8 per cent versus 2.5 per cent in December 2011. Manufacturing grew at 8.5 per cent vs 1.8 per cent a month ago while capital goods space showed contraction of 1.5 per cent vs contraction of 16.5 per cent in December 2011.
"The overall number is encouraging. It shows that perhaps industrial production is picking up and we may expect to see slightly improved behaviour in the month of February and March. In that sense the January number is encouraging, but the composition of the index of industrial production, particularly the growth rates in some of the sectors, is not very encouraging.
The capital goods sector is still not doing well. It is still negative and the intermediate goods sector is also showing a negative growth, but the big push has come as a result of the consumer non-durables.
Reacting to the IIP data, Finance Minister Pranab Mukherjee said, there is strong recovery in the backdrop of last December's figure where IIP grew by 2.8 per cent.
Analysts are of the view following the strong IIP figures; the RBI may not tinker with interest rates at its policy meet later this week.
A rate cut in March is certainly out of the question due to the latest industrial output number and the high powered money injected through the cash reserve ratio cut on Friday.
Meanwhile, the Budget Session began with a joint address by President Pratibha Patil. She said the economy is likely to stabilise soon with 8-9 per cent growth path.
Speaking to reporters ahead of the start of Budget Session, Prime Minister Manmohan Singh said that the government has all the numbers and the session would run smoothly. He added that government was willing to discuss and debate all issues on the floor of the house.
It depends on whether the budget is likely to be populist or growth oriented budget. Essentially we are hoping that it is going to be more reformist one with larger outlay to capital spending and some amount of rationalisation on the subsidy. If that comes through, it should be considered to be a positive budget.
Nevertheless we do expect that it is not likely to trigger a bull run because our central theme is that the disposable income for the household is likely to undergo a certain amount of slowdown because of increase in excise duty, reduction in subsidy and also slower growth as far as transfers are concerned.
There is a certain amount of adverse impact that the budget could have with respect to consumption demand.
From a longer term standpoint, if you have a certain tough budget, which looks at fiscal correction, it should be considered to be a positive budget. Odds are also there populism measures could eventually creep in and the imbalances are likely to accentuate. I would consider that to be a negative for the markets and for the earnings outlook.
The Nifty ended at 5359.55, up 26 points or 0.49 per cent. The broader index touched a high of 5421.90 and low of 5327.30 in trade today.
The Bombay Stock Exchange's Sensex ended at 17587.67, up 84.43 points or 0.48 per cent. It touched intraday high of 17772.10 and low of 17494.65.
"The market will remain choppy where you will have intraday rallies and intraday declines. Even global markets are not showing a whole lot of strength. So it would be better to have a shorter term horizon, do not carry overnight positions etc as you now have two days before events.
I would like to buy on dips but would not be too keen on chasing this market as it will have sudden dips for no apparent reason. You have to be cautious going forward.
Yes trade long, do not trade short but try to keep taking profits. I took my profits before the close and going home flat. Maybe we will get another dip towards 5350-5340, that would be again a buying opportunity. Look at more sideways than big trending moves, although individual stocks could outperform.
BSE Midcap Index gained 1.06 per cent and BSE Smallcap Index moved 0.70 per cent higher.
Amongst the sectoral indices, BSE Capital Goods Index moved 2.56 per cent higher, BSE Realty Index gained 1.33 per cent, BSE Oil&gas Index advanced 1.24 per cent, BSE Bankex moved 1.22 per cent higher and BSE Metal Index was up 0.92 per cent. BSE IT Index was down 1.06 per cent.
State Bank of India (3.72%), Larsen & Toubro (3.36%), Reliance Industries (3%), Siemens (2.60%) and Reliance Power (2.75%) were the major Nifty gainers.
Mahindra & Mahindra (-2.12%), ONGC (-1.96%), TCS (-1.90%), Cipla (-1.61%) HDFC (-1.49%) were the major losers.
Shares of M&M continued to slip lower after the company cut tractor production for 4-5days during March 2012 on account of a slowdown in demand.
Market breadth was positive on the NSE with 632 gainers against 378 losers.
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
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