SENSEX 17151.29 -56.00
NIFTY 5202.00 -20.65
USD/INR 0052.38 +00.31
NASDAQ 3016.59 +54.99
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UPDATEDTIME 09.28 PM 25 APRIL 2012
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The Bombay
Stock Exchange's Sensex closed in the negative territory, paring most of the
intraday losses, as investors shrugged off concerns over S&P's outlook
revision on India.
S&P revised India's outlook to negative from stable while affirming 'BBB-' rating. The negative outlook signals at least a one-in-three likelihood of the downgrade of India's sovereign ratings within the next 24 months.
It sees the government to face headwind in implementing policy measures to improve its fiscal and macroeconomic parameters in the near future, given the current unfavorable political environment.
The market which was witnessing a lackluster session ahead of April F&O series expiry fell sharply in a knee jerk reaction in the afternoon. However, the losses were minimised towards the end of session.
The Sensex closed at 17,151.29, down 56 points, or 0.33 per cent. It touched a high of 17,249.61 and a low of 17,019.24 in trade today.
The National Stock Exchange's Nifty ended at 5,202, down 20.65 points, or 0.40 per cent. It has touched an intraday high of 5,236.10 and a low of 5,160.65.
Nifty April future failed to hold on to previous day's high of 5235 levels and fell sharply towards 5150 levels. Later on the back of strong short covering rally it closed around 5200.
If it manages to sustain above 5235 levels then only further move may be seen towards 5270-5300 levels, whereas on downside if it slips below 5180 then selling pressure may intensify and take it down further to 5135 levels.
Nifty future has seen rollovers in line with the past couple of series. However, declining roll costs are indicating that longs are losing their grip at current levels.
The BSE Midcap Index was down 0.55 per cent and the BSE Smallcap Index moved 0.53 per cent lower.
Among sectoral indices, the BSE IT Index was down 1.48 per cent, the BSE Realty Index fell 1.33 per cent, the Power Index declined 1.28 per cent and the BSE Oil& Gas Index was down 0.44 per cent. The BSE FMCG Index was up 0.48 per cent and the BSE Auto Index moved 0.22 per cent higher.
According to analysts, the S&P report had nothing new to offer as the street has been aware of Indian fiscal and political issues for quite sometime.
"There is nothing new in what the rating agency has said. It is not something which was not known. In fact, these concerns were flagged off by the RBI a few months back. It got reiterated in the Union budget and the subsequent credit policy as well.
It is something which has been a common refrain among policy makers, executives, economists and investors. So, it is not something which has been freshly discovered. The market is definitely going to take this event in its stride and move on.
On the concerns of possible downgrading of sovereign rating, analysts are of the view that the government should now act and take bold decisions to keep fiscal and current deficit under control.
"It is high time that the government puts its house in order in terms of fiscal as well as current account. They need to take some resolute steps towards increasing petrol price, diesel price which is the obvious one, but that may not be adequate.
Everybody knows that the coalition government has not been able to do much, but now macro things are worsening to a level that this is more like a wakeup call. If they can get it right in the next 6 months, it is fine. But if it really downgrades, then obviously it is not a positive thing.
The government tried to soothe the nerves of investor community as the Finance Minister Pranab Mukherjee said there was no need to panic following the revision.
Admitting that delays in the process of legislations related to financial sector reforms may be a possible reason for such an outlook by S&P, the minister showed confidence in the Indian economy. Mukherjee said that he was sure that the Indian economy will grow at a 7 per cent rate and that the fiscal deficit would be contained at the estimated figure.
The S&P revision led to volatility in the currency market. The rupee, which pulled back against the US dollar on suspected Reserve Bank of India intervention, slipped from level of 52.45 per dollar to 52.53, up 15 paise, against previous close of 52.68. The rupee may continue to remain under pressure in coming sessions on the back of outflows from foreign institutional investors.
Wipro (-6.99%), Reliance Power (-3.95%), GAIL (-3.43%), Siemens (-2.64%) and IDFC (-2.62%) were among the major Nifty losers.
Wipro's consolidated net profit rose to Rs 1,481 crore ($281 million) for the quarter ended March 2012 from Rs 1,375 crore a year earlier. It expects June quarter revenue of $1.52 billion to $1.55 billion.
Wipro delivered in-line IT services revenues at US$1,536mn (+2% q/q and +1.3% in constant currency) with the other businesses (consumer care and lighting) missing on growth expectations.
Guidance for IT services revenue in the June quarter implies a -1% to 0.9% sequential growth which is disappointing. While this weakness can be partly explained by pressures on India business in June quarter, it also implies lacklustre growth in the rest of the business. We believe that Wipro could continue to face further headwinds on execution. It has a price target of Rs 360 on the stock.
Hero MotoCorp (2.34%), Sterlite Industries (2.22%), Sesa Goa (2.08%), Maruti Suzuki (1.76%) and Bharti Airtel (1.71%) were the major gainers.
FIIs have been exiting Indian markets on concerns of GAAR and lack of economic reforms. UBS, in a recent report, cut India to 'neutral' from 'overweight.' It no longer sees the potential for big downside inflation surprises nor aggressive policy easing from here.
S&P revised India's outlook to negative from stable while affirming 'BBB-' rating. The negative outlook signals at least a one-in-three likelihood of the downgrade of India's sovereign ratings within the next 24 months.
It sees the government to face headwind in implementing policy measures to improve its fiscal and macroeconomic parameters in the near future, given the current unfavorable political environment.
The market which was witnessing a lackluster session ahead of April F&O series expiry fell sharply in a knee jerk reaction in the afternoon. However, the losses were minimised towards the end of session.
The Sensex closed at 17,151.29, down 56 points, or 0.33 per cent. It touched a high of 17,249.61 and a low of 17,019.24 in trade today.
The National Stock Exchange's Nifty ended at 5,202, down 20.65 points, or 0.40 per cent. It has touched an intraday high of 5,236.10 and a low of 5,160.65.
Nifty April future failed to hold on to previous day's high of 5235 levels and fell sharply towards 5150 levels. Later on the back of strong short covering rally it closed around 5200.
If it manages to sustain above 5235 levels then only further move may be seen towards 5270-5300 levels, whereas on downside if it slips below 5180 then selling pressure may intensify and take it down further to 5135 levels.
Nifty future has seen rollovers in line with the past couple of series. However, declining roll costs are indicating that longs are losing their grip at current levels.
The BSE Midcap Index was down 0.55 per cent and the BSE Smallcap Index moved 0.53 per cent lower.
Among sectoral indices, the BSE IT Index was down 1.48 per cent, the BSE Realty Index fell 1.33 per cent, the Power Index declined 1.28 per cent and the BSE Oil& Gas Index was down 0.44 per cent. The BSE FMCG Index was up 0.48 per cent and the BSE Auto Index moved 0.22 per cent higher.
According to analysts, the S&P report had nothing new to offer as the street has been aware of Indian fiscal and political issues for quite sometime.
"There is nothing new in what the rating agency has said. It is not something which was not known. In fact, these concerns were flagged off by the RBI a few months back. It got reiterated in the Union budget and the subsequent credit policy as well.
It is something which has been a common refrain among policy makers, executives, economists and investors. So, it is not something which has been freshly discovered. The market is definitely going to take this event in its stride and move on.
On the concerns of possible downgrading of sovereign rating, analysts are of the view that the government should now act and take bold decisions to keep fiscal and current deficit under control.
"It is high time that the government puts its house in order in terms of fiscal as well as current account. They need to take some resolute steps towards increasing petrol price, diesel price which is the obvious one, but that may not be adequate.
Everybody knows that the coalition government has not been able to do much, but now macro things are worsening to a level that this is more like a wakeup call. If they can get it right in the next 6 months, it is fine. But if it really downgrades, then obviously it is not a positive thing.
The government tried to soothe the nerves of investor community as the Finance Minister Pranab Mukherjee said there was no need to panic following the revision.
Admitting that delays in the process of legislations related to financial sector reforms may be a possible reason for such an outlook by S&P, the minister showed confidence in the Indian economy. Mukherjee said that he was sure that the Indian economy will grow at a 7 per cent rate and that the fiscal deficit would be contained at the estimated figure.
The S&P revision led to volatility in the currency market. The rupee, which pulled back against the US dollar on suspected Reserve Bank of India intervention, slipped from level of 52.45 per dollar to 52.53, up 15 paise, against previous close of 52.68. The rupee may continue to remain under pressure in coming sessions on the back of outflows from foreign institutional investors.
Wipro (-6.99%), Reliance Power (-3.95%), GAIL (-3.43%), Siemens (-2.64%) and IDFC (-2.62%) were among the major Nifty losers.
Wipro's consolidated net profit rose to Rs 1,481 crore ($281 million) for the quarter ended March 2012 from Rs 1,375 crore a year earlier. It expects June quarter revenue of $1.52 billion to $1.55 billion.
Wipro delivered in-line IT services revenues at US$1,536mn (+2% q/q and +1.3% in constant currency) with the other businesses (consumer care and lighting) missing on growth expectations.
Guidance for IT services revenue in the June quarter implies a -1% to 0.9% sequential growth which is disappointing. While this weakness can be partly explained by pressures on India business in June quarter, it also implies lacklustre growth in the rest of the business. We believe that Wipro could continue to face further headwinds on execution. It has a price target of Rs 360 on the stock.
Hero MotoCorp (2.34%), Sterlite Industries (2.22%), Sesa Goa (2.08%), Maruti Suzuki (1.76%) and Bharti Airtel (1.71%) were the major gainers.
FIIs have been exiting Indian markets on concerns of GAAR and lack of economic reforms. UBS, in a recent report, cut India to 'neutral' from 'overweight.' It no longer sees the potential for big downside inflation surprises nor aggressive policy easing from here.
Macquarie's Asia hedge fund exited its short positions in Indian stock futures. The fund, after cutting its India long exposure in March, decided to go short on India using futures contract linked to Nifty on the Singapore Exchange.
As per the provisional data, the FIIs sold equities worth Rs 860.77 crore on 24 April 2012. They were net sellers worth Rs 407.49 crore, a day ago.
The market breadth was negative on the NSE with 465 gainers against 1006 losers.
The European markets moved higher even as the UK's GDP data showed the economy slipped in to double-dip recession since the 1970s. The FTSE 100 was up 0.18 per cent, the CAC 40 rallied 1.60 per cent and the DAX moved 1.36 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
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