SENSEX 16215.84 -77.14
NIFTY 4907.80
-21.10
USD/INR 0053.92 +00.29
NASDAQ 2917.54 -16.28
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UPDATEDTIME 09.28 PM 14 MAY 2012
|
The Nifty ended in the negative terrain for the fifth straight
session, closing near the psychological level of 4,900 as a higher than
expected inflation and worries over the eurozone debt crisis weighed
on sentiment.
Rate sensitives came under pressure after the April WPI inflation soared to 7.23 per cent against 6.89 per cent in March. Core inflation inched up to 5 per cent from 4.7 per cent in the previous month. There are concerns that the Reserve Bank of India may find it difficult to cut interest rates.
Headline inflation edged up to cross the 7 per cent mark in April, with a broad-based upturn in primary articles, manufactured products and the fuel index. However, one silver lining was that core inflation remained relatively benign at 4.8 per cent (not far away from the RBI's comfort zone of 4 per cent).
A high base effect should result in WPI remaining benign in the 7 per cent range in the near term although we could see an upward bias in the latter half of the year due to exchange rate pressures and the base effect.
"On rates, our base case remains that of 25bps of further easing. While the growth slowdown, coupled with the recent downtrend in oil prices could influence rate decisions; this inflation print - and how the RBI distinguishes between headline and core - could make the outlook for rate cuts beyond 25bps more challenging.
The Sensex ended at 16,215.84, down 77.14 points, or 0.47 per cent. It touched an intraday high of 16,390.33 and a low of 16,124.82 today.
The Nifty closed at 4,907.80, down 21.10 points, or 0.43 per cent. It touched an intraday high of 4,957.20 and a low of 4,874.50 today.
According to analysts, Indian markets will continue to remain under pressure unless the government starts acting on policy reforms.
India's policy structure is unhelpful for medium- to long-term growth, and that is discouraging investors from going into the market. It has an issue with high inflation which is partly a function of the inability to get infrastructure projects approved in these bottlenecks holding back growth. It also runs a large current account deficit. So it is extremely sensitive to where the oil price is.
The BSE Midcap Index fell 1 per cent and the BSE Smallcap Index declined 1.26 per cent.
Among sectoral indices, the BSE Oil & Gas Index was down 1.69 per cent, the Bankex fell 1.61 per cent, the BSE Realty Index declined 1.27 per cent and the BSE Power Index slipped 0.79 per cent. The BSE Healthcare Index was up 0.78 per cent and the BSE IT Index edged up 0.41 per cent.
Profit booking was also seen in banks after Moody's downgraded ICICI Bank, HDFC Bank and Axis Bank.
Cairn India (4.82%), Bank of Baroda (4.59%), SAIL (3.42%), Reliance Infrastructure (3.20%), Punjab National Bank (3.07%), Jaiprakash Associates (2.86%) and Reliance Industries (2.32) were among the top Nifty losers.
According to dealers, cash-based selling was seen in RIL after it reduced its estimates for proven gas reserves from the KG-D6 block by 6.7 per cent to 3.67 trillion cubic feet. The case between the government and the company is not headed anywhere. They see no major trigger in the company for the next 1-2 years.
Asian Paints (3.06%), Ranbaxy Laboratories (2.29%), Sesa Goa (1.87%), BPCL (1.87%) and Bajaj Auto (1.80%) led the gainers' pack.
L&T reported a standalone net profit of Rs 1,920.41 crore for the quarter ended March 2012 compared to Rs 1,686.21 crore in the same period a year ago. Net sales were at Rs 18,460.90 crore for the quarter from Rs 15,261.17 crore in the same period a year ago.
According to Dhananjay Sinha, Co- Head Institutional Research, Emkay Global Financial Services, L&T's fourth quarter results were above expectations while order inflows were below expectations.
"The order inflows, down 31 per cent YoY to Rs 212 billion, disappointed and is below our as well as L&T guidance.
The company gave guidance of order inflows of Rs 82,000-84,000 crore for FY13. It expects the revenue growth momentum to sustain and EBITDA margins to be +/- 50 bps. We believe that, guidance was in line with expectations and there won't be any earnings changes.
Meanwhile, the rupee ended at 53.97 per dollar, down 34 paise, against the previous close of 53.63.
Foreign institutional investors bought equities worth Rs 158.57 crore on Friday, as per provisional stock exchange data.
The market breadth was negative on the NSE with 455 gainers against 1,015 losers.
European markets were under pressure over political uncertainty in Greece. The FTSE 100 was down 1.81 per cent, CAC 40 fell 2.27 per cent and the DAX moved 2.32 per cent lower.
Rate sensitives came under pressure after the April WPI inflation soared to 7.23 per cent against 6.89 per cent in March. Core inflation inched up to 5 per cent from 4.7 per cent in the previous month. There are concerns that the Reserve Bank of India may find it difficult to cut interest rates.
Headline inflation edged up to cross the 7 per cent mark in April, with a broad-based upturn in primary articles, manufactured products and the fuel index. However, one silver lining was that core inflation remained relatively benign at 4.8 per cent (not far away from the RBI's comfort zone of 4 per cent).
A high base effect should result in WPI remaining benign in the 7 per cent range in the near term although we could see an upward bias in the latter half of the year due to exchange rate pressures and the base effect.
"On rates, our base case remains that of 25bps of further easing. While the growth slowdown, coupled with the recent downtrend in oil prices could influence rate decisions; this inflation print - and how the RBI distinguishes between headline and core - could make the outlook for rate cuts beyond 25bps more challenging.
The Sensex ended at 16,215.84, down 77.14 points, or 0.47 per cent. It touched an intraday high of 16,390.33 and a low of 16,124.82 today.
The Nifty closed at 4,907.80, down 21.10 points, or 0.43 per cent. It touched an intraday high of 4,957.20 and a low of 4,874.50 today.
According to analysts, Indian markets will continue to remain under pressure unless the government starts acting on policy reforms.
India's policy structure is unhelpful for medium- to long-term growth, and that is discouraging investors from going into the market. It has an issue with high inflation which is partly a function of the inability to get infrastructure projects approved in these bottlenecks holding back growth. It also runs a large current account deficit. So it is extremely sensitive to where the oil price is.
The BSE Midcap Index fell 1 per cent and the BSE Smallcap Index declined 1.26 per cent.
Among sectoral indices, the BSE Oil & Gas Index was down 1.69 per cent, the Bankex fell 1.61 per cent, the BSE Realty Index declined 1.27 per cent and the BSE Power Index slipped 0.79 per cent. The BSE Healthcare Index was up 0.78 per cent and the BSE IT Index edged up 0.41 per cent.
Profit booking was also seen in banks after Moody's downgraded ICICI Bank, HDFC Bank and Axis Bank.
Cairn India (4.82%), Bank of Baroda (4.59%), SAIL (3.42%), Reliance Infrastructure (3.20%), Punjab National Bank (3.07%), Jaiprakash Associates (2.86%) and Reliance Industries (2.32) were among the top Nifty losers.
According to dealers, cash-based selling was seen in RIL after it reduced its estimates for proven gas reserves from the KG-D6 block by 6.7 per cent to 3.67 trillion cubic feet. The case between the government and the company is not headed anywhere. They see no major trigger in the company for the next 1-2 years.
Asian Paints (3.06%), Ranbaxy Laboratories (2.29%), Sesa Goa (1.87%), BPCL (1.87%) and Bajaj Auto (1.80%) led the gainers' pack.
L&T reported a standalone net profit of Rs 1,920.41 crore for the quarter ended March 2012 compared to Rs 1,686.21 crore in the same period a year ago. Net sales were at Rs 18,460.90 crore for the quarter from Rs 15,261.17 crore in the same period a year ago.
According to Dhananjay Sinha, Co- Head Institutional Research, Emkay Global Financial Services, L&T's fourth quarter results were above expectations while order inflows were below expectations.
"The order inflows, down 31 per cent YoY to Rs 212 billion, disappointed and is below our as well as L&T guidance.
The company gave guidance of order inflows of Rs 82,000-84,000 crore for FY13. It expects the revenue growth momentum to sustain and EBITDA margins to be +/- 50 bps. We believe that, guidance was in line with expectations and there won't be any earnings changes.
Meanwhile, the rupee ended at 53.97 per dollar, down 34 paise, against the previous close of 53.63.
Foreign institutional investors bought equities worth Rs 158.57 crore on Friday, as per provisional stock exchange data.
The market breadth was negative on the NSE with 455 gainers against 1,015 losers.
European markets were under pressure over political uncertainty in Greece. The FTSE 100 was down 1.81 per cent, CAC 40 fell 2.27 per cent and the DAX moved 2.32 per cent lower.
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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