SENSEX 17196.47
-405.24
NIFTY 5228.45 -136.50
USD/INR 0051.20 +00.58
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UPDATEDTIME 09.28 PM 22 MARCH 2012
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The National Stock Exchange's Nifty gave away previous
session's gains and closed near important support levels as rupee depreciation
back home and weakness in European markets following weak Chinese
manufacturing data spooked sentiments.
The Indian rupee weakened against the US dollar on rising demand from oil importers and breached Rs 51 per dollar mark. The partially convertible rupee slipped to 51.08, down 42 paise against previous close of 50.66 per dollar.
As the rupee continues to weaken, crude oil prices which have been hovering around $105-110 per barrel raise concerns for Indian economy.
The partial roll-back in passenger railway fares by Railways Minister Mukul Roy raises fears over fuel price hike. If the government fails to hike petrol and diesel prices, the subsidy burden is set to impact fiscal deficit further. There are also doubts whether the Reserve Bank of India will cut interest rates at its policy review meet next month to support economic growth.
However, experts are of the view that the market's underlying trend remains positive as long as foreign institutional investors continue to pump in dollars in Indian equities.
"On the macro front, the news continues to be poor. We know all the reasons and to add to it we have this latest CAG report story. So on the domestic front, there is not great news.
But it is the wall of liquidity that we are combating. I do not think that wall is to be underestimated unless one sees 3-5 days of clear FII selling that too in the cash segment. I would still tend to think conditions will stay bullish in spite of the poor macro conditions.
The Nifty ended at 5228.45, down 136.50 points or 2.54 per cent. The broader index touched a high of 5385.95 and low of 5205.65 in trade so far.
The Bombay Stock Exchange's Sensex ended at 17196.47, down 405.24 points or 2.30 per cent. It touched intraday high of 17687.01 and low of 17136.50.
"The better strategy would be to wait for little more time as the visibility that we were counting on expectations from budget and fiscal deficit numbers have not been met. There is definitely a fundamental pressure that we are going to see on the economy.
Such corrections in the market give you some excellent opportunities of getting into some of the sectors that you might have missed out. I believe that immediately nothing is going to go up on a sustained basis.
You could have some buying here and there but then market is going to take its time to settle down to a level before it starts to move up once again.
Trend has turned bearish in the short term and the Nifty may even break 200-DMA.
The Indian rupee weakened against the US dollar on rising demand from oil importers and breached Rs 51 per dollar mark. The partially convertible rupee slipped to 51.08, down 42 paise against previous close of 50.66 per dollar.
As the rupee continues to weaken, crude oil prices which have been hovering around $105-110 per barrel raise concerns for Indian economy.
The partial roll-back in passenger railway fares by Railways Minister Mukul Roy raises fears over fuel price hike. If the government fails to hike petrol and diesel prices, the subsidy burden is set to impact fiscal deficit further. There are also doubts whether the Reserve Bank of India will cut interest rates at its policy review meet next month to support economic growth.
However, experts are of the view that the market's underlying trend remains positive as long as foreign institutional investors continue to pump in dollars in Indian equities.
"On the macro front, the news continues to be poor. We know all the reasons and to add to it we have this latest CAG report story. So on the domestic front, there is not great news.
But it is the wall of liquidity that we are combating. I do not think that wall is to be underestimated unless one sees 3-5 days of clear FII selling that too in the cash segment. I would still tend to think conditions will stay bullish in spite of the poor macro conditions.
The Nifty ended at 5228.45, down 136.50 points or 2.54 per cent. The broader index touched a high of 5385.95 and low of 5205.65 in trade so far.
The Bombay Stock Exchange's Sensex ended at 17196.47, down 405.24 points or 2.30 per cent. It touched intraday high of 17687.01 and low of 17136.50.
"The better strategy would be to wait for little more time as the visibility that we were counting on expectations from budget and fiscal deficit numbers have not been met. There is definitely a fundamental pressure that we are going to see on the economy.
Such corrections in the market give you some excellent opportunities of getting into some of the sectors that you might have missed out. I believe that immediately nothing is going to go up on a sustained basis.
You could have some buying here and there but then market is going to take its time to settle down to a level before it starts to move up once again.
Trend has turned bearish in the short term and the Nifty may even break 200-DMA.
Today's fall
damaged a lot of stock formation as well as index formation in the short term.
It will be difficult for the markets to get past levels of 5300 to about 5325.
There are chances that we might actually break the 200-day average and fall
below 5160 and see lower levels.
Next few days would be volatile, choppy and people need to trade with caution.
BSE Midcap Index down 2.27 per cent and BSE Smallcap Index moved 1.168 per cent lower.
BSE Realty Index fell 4.25 per cent, BSE Power Index was down 3.62 per cent, BSE Bankex declined 3.41 per cent and BSE Capital Goods Index moved 3.37 per cent lower.
Jaiprakash Associates (-7.18%), Jindal Steel (-7.15%), Reliance Power (-6.56%), Reliance Infrastructure (-6.53%), IDFC (-6.03%) and Reliance Industries (-4.17%) were amongst the top Nifty losers.
Steel and power companies witnessed selling pressure after a draft from the Comptroller Auditor General accused the government for extending 'undue benefits" totaling Rs 10.67 lakh crore to commercial entities by giving them 155 coal acreages without auction between 2004 and 2009.
Coal India (2.07%) and Hero MotoCorp (0.57%) were the only gainers.
Market breadth was negative on the NSE with 303 gainers against 1203 losers.
Next few days would be volatile, choppy and people need to trade with caution.
BSE Midcap Index down 2.27 per cent and BSE Smallcap Index moved 1.168 per cent lower.
BSE Realty Index fell 4.25 per cent, BSE Power Index was down 3.62 per cent, BSE Bankex declined 3.41 per cent and BSE Capital Goods Index moved 3.37 per cent lower.
Jaiprakash Associates (-7.18%), Jindal Steel (-7.15%), Reliance Power (-6.56%), Reliance Infrastructure (-6.53%), IDFC (-6.03%) and Reliance Industries (-4.17%) were amongst the top Nifty losers.
Steel and power companies witnessed selling pressure after a draft from the Comptroller Auditor General accused the government for extending 'undue benefits" totaling Rs 10.67 lakh crore to commercial entities by giving them 155 coal acreages without auction between 2004 and 2009.
Coal India (2.07%) and Hero MotoCorp (0.57%) were the only gainers.
Market breadth was negative on the NSE with 303 gainers against 1203 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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