SENSEX 17094.51 -238.11
NIFTY 5207.45 -69.40
USD/INR 0051.08 +00.53
NASDAQ 3018.17 -37.38
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UPDATEDTIME 09.28 PM 13 APRIL 2012
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The Bombay
Stock Exchange's Sensex closed above psychological support levels as
institutional investors resorted to basket selling in technology stocks
following poor FY13 revenue guidance from Infosys Technologies and
weak cues from European markets.
Infosys Technologies reported net profit of Rs 2316 crore for quarter ended March 2012, up 27 per cent against Rs 1818 crore in the same period a year ago. However, disappointing revenue guidance for FY13 pushed investors to offload longs in the stock. The company expects growth revenue of 8-10 per cent in FY 2013 which is lower than Nasscom's guidance of 11-14% for the IT sector in FY13.
The company expects EPS to be in the range Rs 158.76 to Rs 161.41. Analysts are expecting stock to trade in a range of Rs 2300- 2600 in near to medium term.
The results for 4Q were below estimates and so is the guidance for FY13. The guidance reflects the challenging macro scenario which Infosys is facing. We also understand that, a part of the projected underperformance v/s the industry is due to the strategy of not chasing low-margin business.
The recent re-structuring within the company is impacting near term growth but should help Infosys return to better growth rates in the medium to long term.
The benchmarks, which braved over 10 per cent fall in Infosys Technologies till afternoon, witnessed a sharp fall in the afternoon led by losses in rate sensitives like realty, banks and capital goods stocks.
After IIP figures and disappointing Infosys guidance, the market will now keenly await the Reserve Bank of India's policy review meet next week for direction. The street is expecting the RBI to cut interest rates by 25 basis points to boost economic growth.
If the RBI cuts interest rate next week, the move will help in spurring capital growth and capital investment in the economy that will help in supporting economic growth.
Credit rating agency Crisil is expecting 50-75 basis points in the current fiscal. "RBI's ability to cut repo rate will be constrained by fiscal slippage and inflation persisting above its comfort level. We expect RBI to cut the repo rates by 50-75 bps during 2012-13.
The Sensex ended at 17094.51, down 238.11 points or 1.37 per cent. It touched intraday high of 17398.22 and low of 17027.30.
The National Stock Exchange's Nifty ended at 5207.45, down 69.40 points or 1.32 per cent. It touched a high of 5306.75 and low of 5185.40 in trade today.
After days of consolidations indicators have started to dip with today's failed breakout above the levels of 5300. That is not a good sign and I would now keep a close watch on levels of 5150-5140 (200-day average). If that is broken then you might actually look at a sharper correction than what we have had for last few days.
As of now the range stands but the slight change in momentum could be damaging and negative on the charts. Therefore it is imperative that we hold 5150 for next few days.
Infosys Technologies reported net profit of Rs 2316 crore for quarter ended March 2012, up 27 per cent against Rs 1818 crore in the same period a year ago. However, disappointing revenue guidance for FY13 pushed investors to offload longs in the stock. The company expects growth revenue of 8-10 per cent in FY 2013 which is lower than Nasscom's guidance of 11-14% for the IT sector in FY13.
The company expects EPS to be in the range Rs 158.76 to Rs 161.41. Analysts are expecting stock to trade in a range of Rs 2300- 2600 in near to medium term.
The results for 4Q were below estimates and so is the guidance for FY13. The guidance reflects the challenging macro scenario which Infosys is facing. We also understand that, a part of the projected underperformance v/s the industry is due to the strategy of not chasing low-margin business.
The recent re-structuring within the company is impacting near term growth but should help Infosys return to better growth rates in the medium to long term.
The benchmarks, which braved over 10 per cent fall in Infosys Technologies till afternoon, witnessed a sharp fall in the afternoon led by losses in rate sensitives like realty, banks and capital goods stocks.
After IIP figures and disappointing Infosys guidance, the market will now keenly await the Reserve Bank of India's policy review meet next week for direction. The street is expecting the RBI to cut interest rates by 25 basis points to boost economic growth.
If the RBI cuts interest rate next week, the move will help in spurring capital growth and capital investment in the economy that will help in supporting economic growth.
Credit rating agency Crisil is expecting 50-75 basis points in the current fiscal. "RBI's ability to cut repo rate will be constrained by fiscal slippage and inflation persisting above its comfort level. We expect RBI to cut the repo rates by 50-75 bps during 2012-13.
The Sensex ended at 17094.51, down 238.11 points or 1.37 per cent. It touched intraday high of 17398.22 and low of 17027.30.
The National Stock Exchange's Nifty ended at 5207.45, down 69.40 points or 1.32 per cent. It touched a high of 5306.75 and low of 5185.40 in trade today.
After days of consolidations indicators have started to dip with today's failed breakout above the levels of 5300. That is not a good sign and I would now keep a close watch on levels of 5150-5140 (200-day average). If that is broken then you might actually look at a sharper correction than what we have had for last few days.
As of now the range stands but the slight change in momentum could be damaging and negative on the charts. Therefore it is imperative that we hold 5150 for next few days.
BSE Midcap
Index was down 0.72 per cent and BSE Smallcap Index was 0.63 per cent lower.
Amongst the sectoral indices, BSE IT Index plunged 8.76 per cent, BSE Realty Index fell 0.93 per cent, BSE Bankex Index was down 0.80 per cent and BSE Capital Goods Index fell 0.55 per cent. BSE Healthcare Index was up 1.03 per cent.
Infosys Technologies (-12.61%), TCS (-5.47%), Wipro (-4.10%), Hindalco Industries (-2.58%) and Jindal Steel (-2.43%) were the major Sensex losers.
Sun Pharma (2.54%), Coal India (1.52%), Hero MotoCorp (1.52%), Tata Motors (1.33%) and Reliance Industries (1.12%) were amongst gainers pack.
Market breadth was negative on the BSE with 1313 gainers against 1346 losers.
The European markets extended losses on concerns over increased borrowings by Spain from the European Central Bank and as China's economy grew at 8.1 per cent, slower than 8.9 per cent growth in fourth quarter of 2011. The GDP grew lower than expectations of 8.5 per cent.
Amongst the sectoral indices, BSE IT Index plunged 8.76 per cent, BSE Realty Index fell 0.93 per cent, BSE Bankex Index was down 0.80 per cent and BSE Capital Goods Index fell 0.55 per cent. BSE Healthcare Index was up 1.03 per cent.
Infosys Technologies (-12.61%), TCS (-5.47%), Wipro (-4.10%), Hindalco Industries (-2.58%) and Jindal Steel (-2.43%) were the major Sensex losers.
Sun Pharma (2.54%), Coal India (1.52%), Hero MotoCorp (1.52%), Tata Motors (1.33%) and Reliance Industries (1.12%) were amongst gainers pack.
Market breadth was negative on the BSE with 1313 gainers against 1346 losers.
The European markets extended losses on concerns over increased borrowings by Spain from the European Central Bank and as China's economy grew at 8.1 per cent, slower than 8.9 per cent growth in fourth quarter of 2011. The GDP grew lower than expectations of 8.5 per cent.
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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