A session after showcasing a smart bounce back, Indian stock markets have gone on to consolidate their positions around previous closing levels as investors at large remained reluctant to build on long positions ahead of the IIP data and the outcome of assembly polls scheduled to be announced later this week. The session remained characterized by volatility as traders utilized every small rise to trim down their positions and book profits. The broad based crash in commodity prices which led to the short covering rally over the weekend is expected to prove favorable for the domestic bourses since inflation and the consequent rate hikes have been the biggest concerns for the markets lately. Although equities and commodities recovered worldwide after the brief tumult, which was led by concerns of a slowdown in the US and China, bourses in India still look far from being stable as they lack conviction to sustain optimism for long unless FII flows turn positive. Foreign Institutional Investors (FIIs) relentlessly ploughed back their funds from domestic markets for yet another session on expectations that macroeconomic headwinds will eat in to their returns in the time to come and force the stock markets to underperform. On the global front Asian markets snapped the session on a mixed note while the European counterparts are exhibiting a somber trend this Monday. The NSE's 50-share broadly followed index Nifty was little changed from its previous close and settled around the psychological 5,550 level while Bombay Stock Exchange's Sensitive Index, Sensex too finished on a flat note with a positive bias above the psychological 18,500 level. The broader markets too closed on a quiet note. The midcap index added 0.12% while the smallcap index remained unchanged. On the sectoral front, the interest rate sensitive auto counter languished at the bottom of the table, being the top laggard with losses of 1.29%, as concerns that higher interest rates could pummel sales of automobiles loomed large. Auto major Maruti Suzuki remained the top loser on Sensex with 2.24% losses while Tata Motors was another straggler with 1.90% losses. Another rate sensitive pack which bore the brunt of bears was Bankex, shedding 0.37% as heavyweights like HDFC Bank and SBI slipped 0.79% and 0.74% respectively. On the other hand, most of the FMCG stocks rose on the back of Hindustan Unilever's Q4 earnings announcement. HUL spurted by 3.55% followed by Nestle India which zoomed by 3.22%. Moreover, positive close for bellwethers like RIL, L&T and Infosys also helped the markets to limit their downside chances. On the result front, stocks like HUL, Godrej Properties, Adani Power, Mundra Port got commended by the investors in the session.
On the global front, most Asian equity indices settled in the green terrain on the initial trading day of the week. Taiwan stocks rose more than half a percent as sentiments remained optimistic that the government there will boost the stock market in the months ahead of the presidential election. The European indices are trading on a disappointing note as France's CAC slipped 0.88%, Germany's DAX plunged 0.92% and London's FTSE 100 declined by 0.51%. On the other hand, the screen trading for US index futures too indicated that the Dow could open on a positive note.
Earlier on Dalal Street, the benchmark got off to an optimistic start on the back of supportive cues from some of the Asian markets, influenced by the optimistic close on Wall Street on the back of better than anticipated US payrolls data released on Friday. But the markets failed to capitalize on the initial momentum in the morning session of trade as they got dragged by rate sensitives in the early morning session. The frontline indices went ahead to test the psychological 5,500 and 18,350 levels which proved as firm support levels as the indices saw some bit of recovery. Buying gathered some pace in the initial hours of second half as investors covered their short positions however, profit booking at higher levels eventually led the bourses to snap the session around previous closing levels. Markets consolidated on volumes of over Rs 1.06 lakh crore while the turnover for NSE F&O segment too remained on the lower side compared to Friday at over 0.95 lakh crore. Market breadth remained negative as there were 1284 shares on the gaining side against 1512 shares on the losing side while 109 shares remained unchanged.
Finally, the BSE Sensex gained 10.15 points or 0.05% to settle at 18,528.96 while the S&P CNX Nifty closed tad lower by 0.35 points or 0.01% to end at 5,551.10.
The BSE Sensex touched a high and a low of 18,643.58 and 18,367.21 respectively. The BSE Mid-cap index rises by 0.12% and Small-cap index stable with no change.
Bharti Airtel up 3.93%, Hindustan Unilever up 3.55%, Tata Power up 2.49%, Jindal Steel up 1.02% and Sterlite Industries up 0.95% were major gainers on the Sensex.
On the flip side, Maruti Suzuki down 2.24%, Jaiprakash Associate down 1.91%, Tata Motors down 1.90%, Bajaj Auto down 1.84% and Reliance Infrastructure down 1.43% were the major losers on the index.
Indian Finance Minister Pranab Mukherjee, in a bilateral meeting with his Japanese counterpart, highlighted the significance of India's strategic partnership with Japan and affirmed to advance this partnership in all areas. Bilateral trade and strategic ties between the countries came up for discussion during the meeting between Pranab Mukherjee and Yoshihiko Noda the Finance Ministers of India and Japan respectively in Hanoi, Vietnam.
India and Japan signed a Comprehensive Economic Partnership Agreement (CEPA) on February 16, 2011, but the agreement is awaiting Japanese Parliament's ratification before being implemented. Mukherjee stated that, "after the CEPA comes into force, the bilateral trade is likely to increase substantially as has happened in the case of South Korea where after coming in to force of CEPA the bilateral trade during the first year increased by more than 40%."
The Indian finance minister underscored that the CEPA will prove as a win-win situation for both the nations as with the implementation of CEPA, there will be more investment flow from Japan to India and Japan will get access to huge Indian market for its products. CEPA will generate more business opportunities for Indian service and pharmaceutical sectors as on one hand Indian professionals will be able to provide their services there while on the other hand pharma companies will get treatment similar to Japanese companies in the matter of registration and release of generic medicine in the Japanese market.
Apart from extending its full support to Japan's Comprehensive Economic Partnership Agreement in East Asia (CEPEA) initiative, the Indian minister also said that in the wake of Chinese policy of raising the prices of rare earths and stopping supplies globally, collaboration in exploring rare earths reserves in India will be beneficial for both countries.
The Finance Minister also expressed deep concern and sympathy over the recent natural catastrophe and extended all possible assistance to Japan which has not only supported India in international forums but also is the largest provider of ODA (Official Development Assistance) to India. As on March 2011, 59 projects were under implementation with Japanese loan assistance, while the amount committed by Japan is approximately Rs 58,000 crore (3.3 Trillion Yen). Japan ranks 6th largest in foreign direct investment (FDI) inflow into India accounting for 3.62% of total FDI inflows into India.
FMCG up 1.24%, Metal up 0.74%, TECk 0.49%, PSU up 0.42% and Oil & Gas up 0.08%, were major gainers in the BSE sectoral space. Auto down 1.29%, Bankex down 0.37%, Consumer Durables (CD) down 0.32%, Realty down 0.22% and Power down 0.15% were major losers in the BSE sectoral space.
The S&P CNX Nifty touched a high and a low of 5,586.05 and 5,502.40 respectively.
The top gainers on the Nifty were Hindustan Unilever up 4.48%, Bharti Airtel up 4.35%, Ranbaxy up 2.92%, Tata power up 2.14% and CAIRN up 2.14%.
The top losers on the index were Maruti down 2.24%, Bajaj Auto down 2.10, Tata Motors down 2.09%, JP Associate down 2.08% and PNB down 2.07%.
European markets were trading in red. France's CAC 40 lost 0.96%, Germany's DAX fell by 0.93% and Britain's FTSE 100 was trading down by 0.58%.
Asian equity indices finished the day's trade mostly in the positive terrain on Monday tracking rally in Wall Street supported by better-than-anticipated jobs figures released on Friday. Moreover, Taiwan stocks rose more than half a percent, with banks gaining amid investor optimism the government will boost the stock market in the months ahead of the presidential election. However, investors remained worried due to renewed worries about the euro zone's debt problems. Japanese markets ended the trade with a cut of more than half a percent on concerns about potential power shortages following a government call to shut down the Hamaoka nuclear plant southwest of Tokyo.
On the global front, most Asian equity indices settled in the green terrain on the initial trading day of the week. Taiwan stocks rose more than half a percent as sentiments remained optimistic that the government there will boost the stock market in the months ahead of the presidential election. The European indices are trading on a disappointing note as France's CAC slipped 0.88%, Germany's DAX plunged 0.92% and London's FTSE 100 declined by 0.51%. On the other hand, the screen trading for US index futures too indicated that the Dow could open on a positive note.
Earlier on Dalal Street, the benchmark got off to an optimistic start on the back of supportive cues from some of the Asian markets, influenced by the optimistic close on Wall Street on the back of better than anticipated US payrolls data released on Friday. But the markets failed to capitalize on the initial momentum in the morning session of trade as they got dragged by rate sensitives in the early morning session. The frontline indices went ahead to test the psychological 5,500 and 18,350 levels which proved as firm support levels as the indices saw some bit of recovery. Buying gathered some pace in the initial hours of second half as investors covered their short positions however, profit booking at higher levels eventually led the bourses to snap the session around previous closing levels. Markets consolidated on volumes of over Rs 1.06 lakh crore while the turnover for NSE F&O segment too remained on the lower side compared to Friday at over 0.95 lakh crore. Market breadth remained negative as there were 1284 shares on the gaining side against 1512 shares on the losing side while 109 shares remained unchanged.
Finally, the BSE Sensex gained 10.15 points or 0.05% to settle at 18,528.96 while the S&P CNX Nifty closed tad lower by 0.35 points or 0.01% to end at 5,551.10.
The BSE Sensex touched a high and a low of 18,643.58 and 18,367.21 respectively. The BSE Mid-cap index rises by 0.12% and Small-cap index stable with no change.
Bharti Airtel up 3.93%, Hindustan Unilever up 3.55%, Tata Power up 2.49%, Jindal Steel up 1.02% and Sterlite Industries up 0.95% were major gainers on the Sensex.
On the flip side, Maruti Suzuki down 2.24%, Jaiprakash Associate down 1.91%, Tata Motors down 1.90%, Bajaj Auto down 1.84% and Reliance Infrastructure down 1.43% were the major losers on the index.
Indian Finance Minister Pranab Mukherjee, in a bilateral meeting with his Japanese counterpart, highlighted the significance of India's strategic partnership with Japan and affirmed to advance this partnership in all areas. Bilateral trade and strategic ties between the countries came up for discussion during the meeting between Pranab Mukherjee and Yoshihiko Noda the Finance Ministers of India and Japan respectively in Hanoi, Vietnam.
India and Japan signed a Comprehensive Economic Partnership Agreement (CEPA) on February 16, 2011, but the agreement is awaiting Japanese Parliament's ratification before being implemented. Mukherjee stated that, "after the CEPA comes into force, the bilateral trade is likely to increase substantially as has happened in the case of South Korea where after coming in to force of CEPA the bilateral trade during the first year increased by more than 40%."
The Indian finance minister underscored that the CEPA will prove as a win-win situation for both the nations as with the implementation of CEPA, there will be more investment flow from Japan to India and Japan will get access to huge Indian market for its products. CEPA will generate more business opportunities for Indian service and pharmaceutical sectors as on one hand Indian professionals will be able to provide their services there while on the other hand pharma companies will get treatment similar to Japanese companies in the matter of registration and release of generic medicine in the Japanese market.
Apart from extending its full support to Japan's Comprehensive Economic Partnership Agreement in East Asia (CEPEA) initiative, the Indian minister also said that in the wake of Chinese policy of raising the prices of rare earths and stopping supplies globally, collaboration in exploring rare earths reserves in India will be beneficial for both countries.
The Finance Minister also expressed deep concern and sympathy over the recent natural catastrophe and extended all possible assistance to Japan which has not only supported India in international forums but also is the largest provider of ODA (Official Development Assistance) to India. As on March 2011, 59 projects were under implementation with Japanese loan assistance, while the amount committed by Japan is approximately Rs 58,000 crore (3.3 Trillion Yen). Japan ranks 6th largest in foreign direct investment (FDI) inflow into India accounting for 3.62% of total FDI inflows into India.
FMCG up 1.24%, Metal up 0.74%, TECk 0.49%, PSU up 0.42% and Oil & Gas up 0.08%, were major gainers in the BSE sectoral space. Auto down 1.29%, Bankex down 0.37%, Consumer Durables (CD) down 0.32%, Realty down 0.22% and Power down 0.15% were major losers in the BSE sectoral space.
The S&P CNX Nifty touched a high and a low of 5,586.05 and 5,502.40 respectively.
The top gainers on the Nifty were Hindustan Unilever up 4.48%, Bharti Airtel up 4.35%, Ranbaxy up 2.92%, Tata power up 2.14% and CAIRN up 2.14%.
The top losers on the index were Maruti down 2.24%, Bajaj Auto down 2.10, Tata Motors down 2.09%, JP Associate down 2.08% and PNB down 2.07%.
European markets were trading in red. France's CAC 40 lost 0.96%, Germany's DAX fell by 0.93% and Britain's FTSE 100 was trading down by 0.58%.
Asian equity indices finished the day's trade mostly in the positive terrain on Monday tracking rally in Wall Street supported by better-than-anticipated jobs figures released on Friday. Moreover, Taiwan stocks rose more than half a percent, with banks gaining amid investor optimism the government will boost the stock market in the months ahead of the presidential election. However, investors remained worried due to renewed worries about the euro zone's debt problems. Japanese markets ended the trade with a cut of more than half a percent on concerns about potential power shortages following a government call to shut down the Hamaoka nuclear plant southwest of Tokyo.
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