SENSEX 17357.94 +206.99
NIFTY 5289.70 +63.50
USD/INR 0051.45 -00.20
NASDAQ 3043.92 +55.52
|
UPDATEDTIME 09.28 PM 17 APRIL 2012
|
The
Bombay Stock Exchange's Sensex closed near intraday highs taking support of cut
in repo rate by the Reserve Bank of India and positive cues from
European peers. All the sectoral indices closed in the positive terrain with
realty, metals, capital goods and power stocks leading the rally.
The RBI, in its much awaited policy review meet, cut repo rate by 50 basis points surprising the street which was expecting a 25 bps cut. The central bank took the bold step as it forecasts inflation to slow down to 6.5% in March 2013 and expects FY13 GDP to be at 7.3 per cent.
The move pushed the benchmarks to intermediate resistance levels, but the gains were short-lived as comments by Governor D Subbarao on limited further rate cut and upside risks to current and fiscal deficit dampened investors sentiment.
D Subbarao said that upside risks to inflation still persists and is imperative that administered fuel rates go up. He added that current account deficit is high, unstable and any fiscal slippage will have inflationary impact.
"The RBI has cut rates by 50bps in surprise move. CRR has been left unchanged, as expected. We believe that, the RBI has not assumed any fuel price increase while setting these targets. So, if these price increases do come, the targets for inflation and GDP growth might change.
The RBI has clearly stated that, the fuel price increase is a pre-requisite for future rate cuts to happen. We believe that, the RBI has done its bit by reducing rates by 50bps. So, this once again brings the focus on the fiscal initiatives to be taken by the Government.
For the markets, they now have only the fiscal action to look forward to. The future direction of the market hinges on how fast the Government is able to re-start the reforms process.
We believe that, the Government will start taking important decisions on reforms in due course, which will provide further impetus to the overall economy in the long term. Till these initiatives are taken, markets may remain range-bound and may be dictated more by the quarterly numbers and global markets.
According to analysts, though the rate cut is a positive signal from the RBI, the chances of more rate cuts during the year look minimal.
Taking into account our FY13 expectations for growth and inflation, we could see at best one more rate easing later this year. However this will be data/event-dependent, with key variables to watch being (a) measures to meet the subsidy cap of 2 per cent, pass-through of oil prices and growth and inflation outturns.
With RBI policy now out of the way, investors will take cues from global markets and liquidity for direction. The market sprang back into action in the afternoon with positive opening of European peers following auction of Spain's debt bonds and positive German economic sentiment reading.
The government now needs clear air on issues related to proposed General Anti-Avoidance Rule as it may hurt investments if risk appetite is back in global markets.
The Sensex closed at 17357.94, up 206.99 points or 1.21 per cent. It touched intraday high of 17381.92 and low of 17103.36.
The National Stock Exchange's Nifty ended at 5289.70, up 63.50 points or 1.22 per cent. It touched a high of 5298.20 and low of 5208.35 in trade today.
The market will be choppy but the bias will be mildly on the upside. There is a lot more that needs to be done to re-engage FIIs like GAAR, policy decisions, oil prices etc. Those issues need to get sorted out for the market to really pick up steam.
Till then we will just meander around 5200 to 5400. I do not think great directional moves should be anticipated or you should try to trade this market in a directional manner.
It will be choppy you will go up and down both during a day. Overall we will mildly limp along on the upside so 200 points Nifty range is what you should be looking at.
BSE Midcap Index was up 0.72 per cent and BSE Smallcap Index moved 0.63 per cent higher.
Amongst the sectoral indices, BSE Realty Index was up 2.41 per cent, BSE Metal Index gained 2.01 per cent, BSE Capital Goods Index advanced 1.67 per cent and BSE Power Index gained 1.64 per cent.
ONGC (3.62%), Coal India (3.18%), Hindalco Industries (3.06%), DLF (2.76%) and Hero MotoCorp (2.72%) were the major Sensex gainers.
Public sector Coal India said it would sign a Fuel Supply Agreement with power companies before April 20. The coal major, however, has decided to keep the penalty for failing to supply at least 80 percent of the contracted coal at a minimum level.
M&M (-0.47%), Reliance Industries (-0.25%) and Maruti Suzuki (-0.03%) were the only index losers.
Market breadth was positive on the BSE with 1661 gainers against 1163 losers.
The European markets rallied following Spain's debt auction and economic sentiment reading. FTSE 100 was up 0.90 per cent, DAX gained 1.29 per cent and CAC 40 moved 1.54 per cent higher.
The RBI, in its much awaited policy review meet, cut repo rate by 50 basis points surprising the street which was expecting a 25 bps cut. The central bank took the bold step as it forecasts inflation to slow down to 6.5% in March 2013 and expects FY13 GDP to be at 7.3 per cent.
The move pushed the benchmarks to intermediate resistance levels, but the gains were short-lived as comments by Governor D Subbarao on limited further rate cut and upside risks to current and fiscal deficit dampened investors sentiment.
D Subbarao said that upside risks to inflation still persists and is imperative that administered fuel rates go up. He added that current account deficit is high, unstable and any fiscal slippage will have inflationary impact.
"The RBI has cut rates by 50bps in surprise move. CRR has been left unchanged, as expected. We believe that, the RBI has not assumed any fuel price increase while setting these targets. So, if these price increases do come, the targets for inflation and GDP growth might change.
The RBI has clearly stated that, the fuel price increase is a pre-requisite for future rate cuts to happen. We believe that, the RBI has done its bit by reducing rates by 50bps. So, this once again brings the focus on the fiscal initiatives to be taken by the Government.
For the markets, they now have only the fiscal action to look forward to. The future direction of the market hinges on how fast the Government is able to re-start the reforms process.
We believe that, the Government will start taking important decisions on reforms in due course, which will provide further impetus to the overall economy in the long term. Till these initiatives are taken, markets may remain range-bound and may be dictated more by the quarterly numbers and global markets.
According to analysts, though the rate cut is a positive signal from the RBI, the chances of more rate cuts during the year look minimal.
Taking into account our FY13 expectations for growth and inflation, we could see at best one more rate easing later this year. However this will be data/event-dependent, with key variables to watch being (a) measures to meet the subsidy cap of 2 per cent, pass-through of oil prices and growth and inflation outturns.
With RBI policy now out of the way, investors will take cues from global markets and liquidity for direction. The market sprang back into action in the afternoon with positive opening of European peers following auction of Spain's debt bonds and positive German economic sentiment reading.
The government now needs clear air on issues related to proposed General Anti-Avoidance Rule as it may hurt investments if risk appetite is back in global markets.
The Sensex closed at 17357.94, up 206.99 points or 1.21 per cent. It touched intraday high of 17381.92 and low of 17103.36.
The National Stock Exchange's Nifty ended at 5289.70, up 63.50 points or 1.22 per cent. It touched a high of 5298.20 and low of 5208.35 in trade today.
The market will be choppy but the bias will be mildly on the upside. There is a lot more that needs to be done to re-engage FIIs like GAAR, policy decisions, oil prices etc. Those issues need to get sorted out for the market to really pick up steam.
Till then we will just meander around 5200 to 5400. I do not think great directional moves should be anticipated or you should try to trade this market in a directional manner.
It will be choppy you will go up and down both during a day. Overall we will mildly limp along on the upside so 200 points Nifty range is what you should be looking at.
BSE Midcap Index was up 0.72 per cent and BSE Smallcap Index moved 0.63 per cent higher.
Amongst the sectoral indices, BSE Realty Index was up 2.41 per cent, BSE Metal Index gained 2.01 per cent, BSE Capital Goods Index advanced 1.67 per cent and BSE Power Index gained 1.64 per cent.
ONGC (3.62%), Coal India (3.18%), Hindalco Industries (3.06%), DLF (2.76%) and Hero MotoCorp (2.72%) were the major Sensex gainers.
Public sector Coal India said it would sign a Fuel Supply Agreement with power companies before April 20. The coal major, however, has decided to keep the penalty for failing to supply at least 80 percent of the contracted coal at a minimum level.
M&M (-0.47%), Reliance Industries (-0.25%) and Maruti Suzuki (-0.03%) were the only index losers.
Market breadth was positive on the BSE with 1661 gainers against 1163 losers.
The European markets rallied following Spain's debt auction and economic sentiment reading. FTSE 100 was up 0.90 per cent, DAX gained 1.29 per cent and CAC 40 moved 1.54 per cent higher.
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
Group mail id: makin97NSEtips@yahoogroups.co.in
No comments:
Post a Comment