SENSEX 17103.31 -110.39
NIFTY 5197.25 -30.00
USD/INR 0055.21 +00.07
NASDAQ 2903.53 -04.94
GOLD 29295.00
+27.00
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UPDATEDTIME 09.28 PM 16 JULY 2012
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The Sensex broke
out of intraday range on the downside in the last hour of trade and closed near
psychological support levels on concerns that theReserve Bank of India may
not cut interest rates at its policy review meet later this month even as the WPI
inflation was lower than expected.
The June WPI inflation eased to 7.25 percent as compared to 7.55 percent a month ago. The ET Now poll expected it to be at 7.6 percent. The WPI inflation for food articles index rose to 10.81 percent vs 10.74 percent in May while the WPI primary articles inflation dipped to 10.46 percent vs 10.8 percent previous month.
The 30-share index ended at 17,103.31, down 110.39 points or 0.64 percent. It has touched a high of 17,282.30 and a low of 17,079.63 in trade today.
The Nifty closed at 5,197.25, down 30 points or 0.57 percent. It has touched a high of 5,246.85 and a low of 5,190.45 in trade today.
The BSE Midcap Index was down 0.62 percent the BSE Smallcap Index ended 0.61 percent lower.
Among the sectoral indices, the BSE IT Index was down 2.34 percent, the BSE Metal Index fell 1.98 percent, the BSE Realty Index was 1.61 percent lower and the BSE Capital Goods Index declined 1.02 percent. The BSE Healthcare Index was up 0.94 percent and the BSE Oil & Gas Index edged up 0.07 percent.
According to C Rangarajan, Chairman, Economic Advisory Council to the Prime Minister, the inflation has shown some tendency to decline but the RBI will have to look at various factors including the monsoon before announcing any cut in interest rates.
The Reserve Bank will have to take several factors into account. It is not only what is happening to the current inflation, but also the future prospects. As I mentioned, some concern is still there because of the erratic monsoon. Therefore, that needs to be taken into account. While this has provided some favourable environment, the RBI will have to take into account the future prospects of the inflation before deciding on the policy.
Meanwhile, Sharad Pawar, agriculture minister, said that though the monsoon has been weak so far this year, it is not a drought situation yet.
We have not reached the drought situation yet. This year monsoon is playing hide and seek. It is a challenge for our farmers to maintain the same performance as compared to last two years.
Analysts, say the market is awaiting some bold decisions on reforms front from the government after the presidential elections.
It is definitely going to be some initiatives by the government, supported by the RBI policy. The RBI has been pretty clear about its stands, on where it stands versus growth versus inflation.
Where the government will go as far as policy is concerned is a wide-open field. If some key policy measures are taken -- for instance, FDI in retail -- then you will really see a pickup in the market and a justifiable one.
Deutsche Bank expects the rally in the Indian markets to continue in the near term.
We believe that the ongoing rally is likely to continue in the near term on expectations of some positive policy developments post presidential elections, lower oil prices and attractive valuations. We also believe that the hurdle for INR to depreciate further from current levels is high, as India's CA deficit is expected to improve materially from the FY12 level of 4.2 percent," the Deutsche Bank report said.
It sees Tata Steel, JSW Steel, ICICI Bank, Axis Bank, Yes Bank, DLF and L&T as good buys to participate in the risk rally.
Tata Steel (3.95%), Tata Consultancy Services (3.16%), Jindal Steel (2.69%), Tata Motors (2.63%) and Infosys Technologies (2.48%) were among the major Sensex losers.
Bharti Airtel (3.85%), Dr Reddy's Laboratories (1.81%), Maruti Suzuki (1.62%), Cipla (1.17%) and ONGC(0.77%) were among the major Sensex gainers.
The market breadth was negative on the BSE with 1,160 gainers against 1,661 losers.
The foreign institutional investors bought equities worth Rs 281.13 crore on Friday, as per provisional data from the NSE.
The June WPI inflation eased to 7.25 percent as compared to 7.55 percent a month ago. The ET Now poll expected it to be at 7.6 percent. The WPI inflation for food articles index rose to 10.81 percent vs 10.74 percent in May while the WPI primary articles inflation dipped to 10.46 percent vs 10.8 percent previous month.
The 30-share index ended at 17,103.31, down 110.39 points or 0.64 percent. It has touched a high of 17,282.30 and a low of 17,079.63 in trade today.
The Nifty closed at 5,197.25, down 30 points or 0.57 percent. It has touched a high of 5,246.85 and a low of 5,190.45 in trade today.
The BSE Midcap Index was down 0.62 percent the BSE Smallcap Index ended 0.61 percent lower.
Among the sectoral indices, the BSE IT Index was down 2.34 percent, the BSE Metal Index fell 1.98 percent, the BSE Realty Index was 1.61 percent lower and the BSE Capital Goods Index declined 1.02 percent. The BSE Healthcare Index was up 0.94 percent and the BSE Oil & Gas Index edged up 0.07 percent.
According to C Rangarajan, Chairman, Economic Advisory Council to the Prime Minister, the inflation has shown some tendency to decline but the RBI will have to look at various factors including the monsoon before announcing any cut in interest rates.
The Reserve Bank will have to take several factors into account. It is not only what is happening to the current inflation, but also the future prospects. As I mentioned, some concern is still there because of the erratic monsoon. Therefore, that needs to be taken into account. While this has provided some favourable environment, the RBI will have to take into account the future prospects of the inflation before deciding on the policy.
Meanwhile, Sharad Pawar, agriculture minister, said that though the monsoon has been weak so far this year, it is not a drought situation yet.
We have not reached the drought situation yet. This year monsoon is playing hide and seek. It is a challenge for our farmers to maintain the same performance as compared to last two years.
Analysts, say the market is awaiting some bold decisions on reforms front from the government after the presidential elections.
It is definitely going to be some initiatives by the government, supported by the RBI policy. The RBI has been pretty clear about its stands, on where it stands versus growth versus inflation.
Where the government will go as far as policy is concerned is a wide-open field. If some key policy measures are taken -- for instance, FDI in retail -- then you will really see a pickup in the market and a justifiable one.
Deutsche Bank expects the rally in the Indian markets to continue in the near term.
We believe that the ongoing rally is likely to continue in the near term on expectations of some positive policy developments post presidential elections, lower oil prices and attractive valuations. We also believe that the hurdle for INR to depreciate further from current levels is high, as India's CA deficit is expected to improve materially from the FY12 level of 4.2 percent," the Deutsche Bank report said.
It sees Tata Steel, JSW Steel, ICICI Bank, Axis Bank, Yes Bank, DLF and L&T as good buys to participate in the risk rally.
Tata Steel (3.95%), Tata Consultancy Services (3.16%), Jindal Steel (2.69%), Tata Motors (2.63%) and Infosys Technologies (2.48%) were among the major Sensex losers.
Bharti Airtel (3.85%), Dr Reddy's Laboratories (1.81%), Maruti Suzuki (1.62%), Cipla (1.17%) and ONGC(0.77%) were among the major Sensex gainers.
The market breadth was negative on the BSE with 1,160 gainers against 1,661 losers.
The foreign institutional investors bought equities worth Rs 281.13 crore on Friday, as per provisional data from the NSE.
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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