SENSEX 16877.35 -281.09
NIFTY 5117.95 -87.15
USD/INR 0055.92 +00.60
NASDAQ 2937.15 -28.75
GOLD 29431.00 +154.00
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UPDATEDTIME 09.28 PM 23 JULY 2012
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The Sensex fell
1.6 per cent on Monday, marking its biggest percentage fall since mid-May, asinvestors booked
profits in recently outperforming sectors such as banks after global risk
aversion hammered Asian shares.
Investors in India are facing the prospect of a double whammy, as the euro zone debt crisis looks set to continue given growing worries Spain will need a sovereign bailout, while the global economy continues to show signs of weakness.
At home, investors are starting to grow concerned the government may not be able to deliver substantial policy reforms after last week's presidential elections, threatening to undo the strong gains in Indian stocks seen last month.
Retail stocks such as Pantaloon slumped on Monday following media reports some government coalition members are opposing allowing foreign direct investment into multi-brand outlets.
In my view, time is up, and now nothing concrete can be expected from this government for a long time.
India now needs fast and constant changes in policy in tandem with global changing scenario, which this government will not be able to implement till next election," he added, referring to general elections in 2014.
The Sensex ended at 16,877.35, down 281.09 points or 1.64 per cent. It touched a high of 17,047.73 and a low of 16,849.28 in trade today.
The 50-share NSE Nifty closed at 5,117.95, down 87.15 points or 1.67 per cent. It touched a high of 5,164.20 and a low of 5,108.10 in trade today.
The Nifty slipped for a second straight day and hit its lowest level since June 26 on the back of weak global cues and on concerns that the government might find it difficult to carry ahead with economic reforms following resistance to FDI in retail from the Samajwadi Party.
According to analysts, the market is likely to remain rangebound with a negative bias in the short term and key trigger for an upmove would be reforms initiation from the government.
"Indian markets lost about 1.7 per cent on concerns that Spain might become the fourth euro zone member to need a full international bailout after a second region Murcia (after Valentia) indicated that they might need government help. There were also concerns that, there may be resistance to FDI in retail. This may mean that, the government may face further roadblocks to economic reform agenda.
Investors in India are facing the prospect of a double whammy, as the euro zone debt crisis looks set to continue given growing worries Spain will need a sovereign bailout, while the global economy continues to show signs of weakness.
At home, investors are starting to grow concerned the government may not be able to deliver substantial policy reforms after last week's presidential elections, threatening to undo the strong gains in Indian stocks seen last month.
Retail stocks such as Pantaloon slumped on Monday following media reports some government coalition members are opposing allowing foreign direct investment into multi-brand outlets.
In my view, time is up, and now nothing concrete can be expected from this government for a long time.
India now needs fast and constant changes in policy in tandem with global changing scenario, which this government will not be able to implement till next election," he added, referring to general elections in 2014.
The Sensex ended at 16,877.35, down 281.09 points or 1.64 per cent. It touched a high of 17,047.73 and a low of 16,849.28 in trade today.
The 50-share NSE Nifty closed at 5,117.95, down 87.15 points or 1.67 per cent. It touched a high of 5,164.20 and a low of 5,108.10 in trade today.
The Nifty slipped for a second straight day and hit its lowest level since June 26 on the back of weak global cues and on concerns that the government might find it difficult to carry ahead with economic reforms following resistance to FDI in retail from the Samajwadi Party.
According to analysts, the market is likely to remain rangebound with a negative bias in the short term and key trigger for an upmove would be reforms initiation from the government.
"Indian markets lost about 1.7 per cent on concerns that Spain might become the fourth euro zone member to need a full international bailout after a second region Murcia (after Valentia) indicated that they might need government help. There were also concerns that, there may be resistance to FDI in retail. This may mean that, the government may face further roadblocks to economic reform agenda.
The market has weakened by going
through the breakout level of about 5,190-5,180. It should test 5,050 before
any bounce-back. So a 100-point bounce from 5,050 is possible.
"You may get your two day pop and then we will start following the global markets on the downside. Traditionally August, September period is bad for the global markets. The market will not react to good news in a bad phase.
The BSE Midcap Index was down 1.31 per cent and the BSE Smallcap Index fell 1.14 per cent.
Among sectoral indices, the BSE Metal Index fell 3.35 per cent, the BSE Realty Index was 2.87 per cent lower, the BSE Power Index was down 2.70 per cent and the BSE Auto Index was 2.40 per cent lower.
Maruti Suzuki (5.71per cent), Sterlite Industries (5.52per cent), Hindalco Industries (4.84per cent), GAIL(4.37per cent) and BHEL (3.89per cent) were among the major Sensex losers.
Shares of Maruti Suzuki ended with sharply lower as sentiment turned bearish on the counter after the company management declared an indefinite lockout at its Manesar factory.
Retail counters Pantaloon Retail, Shoppers Stop, Provogue and Trent India plunged after the Samajwadi Party asked the government to not allow FDI in retail until a wide ranging consensus was reached.
Larsen and Toubro reported a net profit of Rs 863.65 crore for the quarter ended June 30, up 15.7 per cent against a net profit of Rs 746.15 crore in the same quarter last fiscal. Net revenue went up by 26 per cent to Rs 11,956.36 crore over Rs 9,482.11 crore in the year-ago period.
Strong sales growth of 26 per cent y-o-y were led by core E&C segment, adjusted EBIDTA margins (after adjusting for MTM forex hit) is in line with expectations at 11.4 .Order inflow was strong at Rs 195 billion which is a growth of 21 per cent and order backlog is Rs 1531 billion. We believe it remains the best play in the infrastructure space in India.
Dr Reddy's Laboratories (1.01per cent) was the only index gainer.
The market breadth was negative on the NSE with 360 gainers against 1133 losers.
"You may get your two day pop and then we will start following the global markets on the downside. Traditionally August, September period is bad for the global markets. The market will not react to good news in a bad phase.
The BSE Midcap Index was down 1.31 per cent and the BSE Smallcap Index fell 1.14 per cent.
Among sectoral indices, the BSE Metal Index fell 3.35 per cent, the BSE Realty Index was 2.87 per cent lower, the BSE Power Index was down 2.70 per cent and the BSE Auto Index was 2.40 per cent lower.
Maruti Suzuki (5.71per cent), Sterlite Industries (5.52per cent), Hindalco Industries (4.84per cent), GAIL(4.37per cent) and BHEL (3.89per cent) were among the major Sensex losers.
Shares of Maruti Suzuki ended with sharply lower as sentiment turned bearish on the counter after the company management declared an indefinite lockout at its Manesar factory.
Retail counters Pantaloon Retail, Shoppers Stop, Provogue and Trent India plunged after the Samajwadi Party asked the government to not allow FDI in retail until a wide ranging consensus was reached.
Larsen and Toubro reported a net profit of Rs 863.65 crore for the quarter ended June 30, up 15.7 per cent against a net profit of Rs 746.15 crore in the same quarter last fiscal. Net revenue went up by 26 per cent to Rs 11,956.36 crore over Rs 9,482.11 crore in the year-ago period.
Strong sales growth of 26 per cent y-o-y were led by core E&C segment, adjusted EBIDTA margins (after adjusting for MTM forex hit) is in line with expectations at 11.4 .Order inflow was strong at Rs 195 billion which is a growth of 21 per cent and order backlog is Rs 1531 billion. We believe it remains the best play in the infrastructure space in India.
Dr Reddy's Laboratories (1.01per cent) was the only index gainer.
The market breadth was negative on the NSE with 360 gainers against 1133 losers.
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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