SENSEX 17222.14 -263.88
NIFTY 5334.40 -88.50
USD/INR 0051.08 +00.53
NASDAQ 3047.44 -33.06
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UPDATEDTIME 09.28 PM 09 APRIL 2012
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The National Stock Exchange's Nifty closed near day's lows as
concerns of global economic health and fears of muted fourth quarter earnings
back home weighed sentiments.
According to analysts, risk-averse foreign institutional investors seem to have limited funds inflows due to lack of clarity on GAAR. The inflows are also likely to peter down further in absence of further monetary easing from the US and Europe. They expect the market to remain range bound in absence of any positive triggers from earnings season.
I do not see any trigger to take the market up. During the first quarter of this calendar year we saw huge rally mainly because of global liquidity and now I suspect that this liquidity will not continue for too long because expectations of QE3 or another LTRO might not fructify.
As far as domestic factors are concerned all these events which were expected to provide a fillip to the market, whether it was monetary policy, budget or state elections, have failed to do so. Fourth quarter earnings season in particular is not going to be a trigger at all. We might see Nifty or index earnings growth at about 8% to 10% YoY which might be a marginal uptick from the third quarter but nothing great to cheer about.
Till the time we see a pick up in the investment cycle in India both from private as well as from the government side I do not think that we are going to come back to a sustained bullish pattern in the market.
The Indian markets had opened with a gap-down, after a four-day long weekend, in line with global peers following poor jobs data in the US and rising inflationary pressure in China. The indices drifted lower as the session progressed and in absence of cues from European peers closed near day's lows.
The Nifty closed at 5234.40, down 88.50 points or 1.66 per cent. The broader index touched a high of 5287.90 and low of 5228 in trade today.
The Bombay Stock Exchange's Sensex ended at 17222.14, down 263.88 points or 1.51 per cent. It touched intraday high of 17407.66 and low of 17199.63.
You have a support line which is at 5170 but the resistance line is consistently coming down. Your first stop was 5620 then you just hardly touched 5500 and again came down from 5375.
This means the support line did not have the buying power that it probably had the last time. Given that, 5170 now becomes even more crucial because if we break it then momentum will pick up on the downside. People must take 5170 seriously because the indications are that the support out there is weakening.
BSE Midcap Index was down 1.35 per cent and BSE Smallcap Index moved 0.65 per cent lower.
Amongst the sectoral indices, BSE Metal Index was down 3.44 per cent, BSE Capital Goods Index fell 3.16 per cent, BSE Power Index declined 2.49 per cent and BSE Bankex was 1.81 per cent lower. BSE Healthcare Index was up 0.32 per cent.
According to dealers, traders also remained on sidelines ahead of Index of Industrial Production data and Infosys Technologies results later this week.
We expect (IT) companies under our coverage to report a sequential revenue growth of about 1.3%, driven by higher volumes but impacted by currency fluctuations. Volumes for the Top 4 companies are expected to rise between 0.2% - 3%. This is a quarter where client budgets are normally finalized and order flow turns stronger in the April - June quarter.
We maintain our optimistic view on the medium-to-long term prospects of the sector. Over the medium term, we expect large caps to out-perform as they are better equipped to counter the impact, if any, of any variation in the demand scenario.
The brokerage prefers Infosys and TCS in large-caps we prefer NIIT Technologies and KPIT Cummins in midcaps space.
Hindalco Industries (-5.48%), Cairn India (-5.25%), IDFC (-5.01%), Sterlite Industries (-4.57%) and BHEL (-4.42%) were the major Nifty losers.
Ranbaxy Laboratories (4.10%), Dr Reddy's Laboratories (2.11%), Cipla (1.67%), Hindustan Unilever (1.52%) and Bajaj Auto (1.26%) were amongst the gainers pack.
Hindustan Unilever has sold Gulita, its sea-facing property in south Mumbai, to Piramal Realty for Rs 452.5 crore. The one-acre property in Worli Seaface, which used to house a training centre and private residences of senior executives of Unilever's Indian arm, will give way to a high-end luxury residential complex.
Shares of BGR Energy Systems gained momentum as the company bagged order worth Rs 1855 crore from NTPC for supply of 2x660 MW super critical boilers to be set up at Solapur in Maharashtra. The execution period of the contract is 48 months.
The company had emerged as the lowest bidder in NTPC's bulk tender for supply of 11x660 MW super critical boilers. As per the tender conditions, BGR Energy is expecting two more orders from NTPC in next 2-3 weeks.
Market breadth was negative on the NSE with 448 gainers against 922 losers.
According to analysts, risk-averse foreign institutional investors seem to have limited funds inflows due to lack of clarity on GAAR. The inflows are also likely to peter down further in absence of further monetary easing from the US and Europe. They expect the market to remain range bound in absence of any positive triggers from earnings season.
I do not see any trigger to take the market up. During the first quarter of this calendar year we saw huge rally mainly because of global liquidity and now I suspect that this liquidity will not continue for too long because expectations of QE3 or another LTRO might not fructify.
As far as domestic factors are concerned all these events which were expected to provide a fillip to the market, whether it was monetary policy, budget or state elections, have failed to do so. Fourth quarter earnings season in particular is not going to be a trigger at all. We might see Nifty or index earnings growth at about 8% to 10% YoY which might be a marginal uptick from the third quarter but nothing great to cheer about.
Till the time we see a pick up in the investment cycle in India both from private as well as from the government side I do not think that we are going to come back to a sustained bullish pattern in the market.
The Indian markets had opened with a gap-down, after a four-day long weekend, in line with global peers following poor jobs data in the US and rising inflationary pressure in China. The indices drifted lower as the session progressed and in absence of cues from European peers closed near day's lows.
The Nifty closed at 5234.40, down 88.50 points or 1.66 per cent. The broader index touched a high of 5287.90 and low of 5228 in trade today.
The Bombay Stock Exchange's Sensex ended at 17222.14, down 263.88 points or 1.51 per cent. It touched intraday high of 17407.66 and low of 17199.63.
You have a support line which is at 5170 but the resistance line is consistently coming down. Your first stop was 5620 then you just hardly touched 5500 and again came down from 5375.
This means the support line did not have the buying power that it probably had the last time. Given that, 5170 now becomes even more crucial because if we break it then momentum will pick up on the downside. People must take 5170 seriously because the indications are that the support out there is weakening.
BSE Midcap Index was down 1.35 per cent and BSE Smallcap Index moved 0.65 per cent lower.
Amongst the sectoral indices, BSE Metal Index was down 3.44 per cent, BSE Capital Goods Index fell 3.16 per cent, BSE Power Index declined 2.49 per cent and BSE Bankex was 1.81 per cent lower. BSE Healthcare Index was up 0.32 per cent.
According to dealers, traders also remained on sidelines ahead of Index of Industrial Production data and Infosys Technologies results later this week.
We expect (IT) companies under our coverage to report a sequential revenue growth of about 1.3%, driven by higher volumes but impacted by currency fluctuations. Volumes for the Top 4 companies are expected to rise between 0.2% - 3%. This is a quarter where client budgets are normally finalized and order flow turns stronger in the April - June quarter.
We maintain our optimistic view on the medium-to-long term prospects of the sector. Over the medium term, we expect large caps to out-perform as they are better equipped to counter the impact, if any, of any variation in the demand scenario.
The brokerage prefers Infosys and TCS in large-caps we prefer NIIT Technologies and KPIT Cummins in midcaps space.
Hindalco Industries (-5.48%), Cairn India (-5.25%), IDFC (-5.01%), Sterlite Industries (-4.57%) and BHEL (-4.42%) were the major Nifty losers.
Ranbaxy Laboratories (4.10%), Dr Reddy's Laboratories (2.11%), Cipla (1.67%), Hindustan Unilever (1.52%) and Bajaj Auto (1.26%) were amongst the gainers pack.
Hindustan Unilever has sold Gulita, its sea-facing property in south Mumbai, to Piramal Realty for Rs 452.5 crore. The one-acre property in Worli Seaface, which used to house a training centre and private residences of senior executives of Unilever's Indian arm, will give way to a high-end luxury residential complex.
Shares of BGR Energy Systems gained momentum as the company bagged order worth Rs 1855 crore from NTPC for supply of 2x660 MW super critical boilers to be set up at Solapur in Maharashtra. The execution period of the contract is 48 months.
The company had emerged as the lowest bidder in NTPC's bulk tender for supply of 11x660 MW super critical boilers. As per the tender conditions, BGR Energy is expecting two more orders from NTPC in next 2-3 weeks.
Market breadth was negative on the NSE with 448 gainers against 922 losers.
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
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