Indian bourses commenced the new week on an unimpressive note as the
benchmark equity indices failed to extend the four session northbound
journey and settled with moderate cuts of around half a percent. It
largely turned out to be a range bound session marred with high
volatility as investors indulged in stock specific activities amid a
slew of earnings announcement by heavyweights belonging to Banking, IT
and FMCG sectors. After accumulating over six percent gains in the
previous week, investors looked to consolidate their position for most
part of the day, lacking any significant upside cue from the global
front. Sentiments remained somber in European as well as Asian markets
after optimism over the solution of Euro-zone debt trouble fizzled out
and marketmen took a breather post seeing a sharp rally last week.
Investors remained concerned that the optimism cannot be sustained since
economies like US and Europe are still not firm on their road to
recovery. The market participants shifted their attention from Europe to
the important US Federal Reserve meet and a slew of economic data that
are scheduled to be announced later this week. Meanwhile the
intervention of Japanese authorities in the currency market to control
the rise of yen against the American dollar too weighed on sentiments as
it made the dollar priced commodities costlier for holders of other
currencies. Back home, the better than expected earnings of FMCG
heavyweight HUL and some banking stocks like Bank of Baroda, UCO Bank
etc gave the much needed support to investors' morale while the IT
bellwether Wipro's strong quarterly earnings too lifted investors'
sentiments in the first half. Meanwhile, the Foreign Institutional
Investors seems to have turned bullish after the two months in October.
According to the data available with the Securities and Exchange Board
of India (SEBI), the FIIs purchased equities and debt worth a gross
amount of Rs 58,483.40 crore and sold securities valued around Rs 57,470
crore, resulting in a net inflow of Rs 1,014.30 core in October.
Earlier on Dalal Street, the benchmark got off to lackadaisical opening and traded around the neutral line without much of deflection. However, the cautious investors booked some profits in oil and gas and automobile counters and dragged the indices to lower levels in mid morning session. There was some recovery evident in noon trades when the key gauges moved closer to the previous closing levels after some encouraging earnings announcement. But some hefty bouts of profit booking in Oil and Gas and Metal counters led the frontline indices snap the four session gaining streak and settle with moderate cuts. Eventually the NSE's 50-share broadly followed index Nifty, slipped by around half a percent and settled above the crucial 5,300 support level while Bombay Stock Exchange's Sensitive Index Sensex shed about a hundred points and closed above the psychological 17,700 mark. Moreover, the broader markets finished on a positive note with gains of around half a percent and outclassed their larger peers by quite a margin. On the BSE sectoral space, the Oil and Gas counter settled as the top laggard in the space after suffering nasty lacerations of over two percent followed by the Metal index which too got pounded by close to two percent. On the other hand, the FMCG pocket went home with over a percent gains being the top gainer in the space after HUL reported encouraging second quarter earnings. While the Banking counter settled with gains of around three fourth of a percent post some upbeat Q2 results and an in-line ICICI Bank earnings announcement. The markets declined on weak volume of over Rs 0.8 lakh crore while the turnover for NSE F&O segment too remained on the lower side as compared to Friday at over 0.7 lakh core. The market breadth remained optimistic as there were 1494 shares on the gaining side against 1354 shares on the losing side while 108 shares remained unchanged.
Finally, the BSE Sensex lost 99.79 points or 0.56% to settle at 17,705.01, while the S&P CNX Nifty declined by 34.10 points or 0.64% to close at 5,326.60.
The BSE Sensex touched a high and a low of 17,813.11 and 17,668.27 respectively. The BSE Mid cap and Small cap index up by 0.37% and 0.21% respectively.
The major gainers on the Sensex were Hindustan Unilever up 7.38%, HDFC Bank up 1.36%, Hero MotoCorp up 0.84%, Infosys up 0.54% and Tata Steel up 0.49%. While, Hindalco Industries down 4.11%, Sterlite Industries down 4.10%, Tata Motors down 3.76%, Jindal Steel down 2.87% and BHEL down 2.86% were the major losers on the index.
The major gainers on the BSE sectoral space were FMCG up 1.04%, Bankex up 0.72% and TECk up 0.10%. While Oil & Gas down 2.09%, Metal down 1.97%, Auto down 0.98%, PSU down 0.80% and Capital Goods (CG) down 0.60% there were no losers on BSE sectoral space.
Meanwhile, the government has ended review of safeguard duty on import of certain aluminium products from China, as the domestic industry did not press for continuation of the tax. The revenue department under the ministry of finance in its notification said that 'the review safeguard investigation...concerning imports of aluminium flat rolled products and aluminium foil into India from China is hereby terminated.'
The review examination, which started in February 2011, was terminated as applicants the Aluminium Association of India asked to end the probe. The Aluminium Association of India in February this year had asked to review for continued impose of tax for another 2 years, by arguing that the imports were causing market disruption.
The Aluminium Association of India in the application had said that the expiry of safeguard duty would cause damage to the domestic industry. The industrial body had also submitted evidences of continued imports and threat to market disruption in support of their claim.
The Directorate General of Safeguard in the Revenue Department said that the investigation has become 'infructuous' upon request for withdrawal of the probe application.
Despite the impose of the safeguard duty, during 2010-11, the import of aluminium flat rolled products and aluminium foil from China surged by 28.87% and 28.36% from last year. Normally a country imposes safeguard duty to provide temporary relief to domestic producers whereas they adjust to the pricing tactics of competitive foreign players.
The S&P CNX Nifty touched high and low of 5,360.25 and 5,314.60, respectively.
The top gainers on the Nifty were HUL up 6.65%, PNB up 1.64%, Sesa Goa up 1.58%, HDFC Bank up 1.52% and Hero MotoCorp up 1.29%. On the flip side, Hindalco down 4.29%, Sterlite Industries down 4.03%, Tata Motors down 3.97%, SAIL down 3.40% and Ambuja Cement down 3.24% were the top losers on the index.
Earlier on Dalal Street, the benchmark got off to lackadaisical opening and traded around the neutral line without much of deflection. However, the cautious investors booked some profits in oil and gas and automobile counters and dragged the indices to lower levels in mid morning session. There was some recovery evident in noon trades when the key gauges moved closer to the previous closing levels after some encouraging earnings announcement. But some hefty bouts of profit booking in Oil and Gas and Metal counters led the frontline indices snap the four session gaining streak and settle with moderate cuts. Eventually the NSE's 50-share broadly followed index Nifty, slipped by around half a percent and settled above the crucial 5,300 support level while Bombay Stock Exchange's Sensitive Index Sensex shed about a hundred points and closed above the psychological 17,700 mark. Moreover, the broader markets finished on a positive note with gains of around half a percent and outclassed their larger peers by quite a margin. On the BSE sectoral space, the Oil and Gas counter settled as the top laggard in the space after suffering nasty lacerations of over two percent followed by the Metal index which too got pounded by close to two percent. On the other hand, the FMCG pocket went home with over a percent gains being the top gainer in the space after HUL reported encouraging second quarter earnings. While the Banking counter settled with gains of around three fourth of a percent post some upbeat Q2 results and an in-line ICICI Bank earnings announcement. The markets declined on weak volume of over Rs 0.8 lakh crore while the turnover for NSE F&O segment too remained on the lower side as compared to Friday at over 0.7 lakh core. The market breadth remained optimistic as there were 1494 shares on the gaining side against 1354 shares on the losing side while 108 shares remained unchanged.
Finally, the BSE Sensex lost 99.79 points or 0.56% to settle at 17,705.01, while the S&P CNX Nifty declined by 34.10 points or 0.64% to close at 5,326.60.
The BSE Sensex touched a high and a low of 17,813.11 and 17,668.27 respectively. The BSE Mid cap and Small cap index up by 0.37% and 0.21% respectively.
The major gainers on the Sensex were Hindustan Unilever up 7.38%, HDFC Bank up 1.36%, Hero MotoCorp up 0.84%, Infosys up 0.54% and Tata Steel up 0.49%. While, Hindalco Industries down 4.11%, Sterlite Industries down 4.10%, Tata Motors down 3.76%, Jindal Steel down 2.87% and BHEL down 2.86% were the major losers on the index.
The major gainers on the BSE sectoral space were FMCG up 1.04%, Bankex up 0.72% and TECk up 0.10%. While Oil & Gas down 2.09%, Metal down 1.97%, Auto down 0.98%, PSU down 0.80% and Capital Goods (CG) down 0.60% there were no losers on BSE sectoral space.
Meanwhile, the government has ended review of safeguard duty on import of certain aluminium products from China, as the domestic industry did not press for continuation of the tax. The revenue department under the ministry of finance in its notification said that 'the review safeguard investigation...concerning imports of aluminium flat rolled products and aluminium foil into India from China is hereby terminated.'
The review examination, which started in February 2011, was terminated as applicants the Aluminium Association of India asked to end the probe. The Aluminium Association of India in February this year had asked to review for continued impose of tax for another 2 years, by arguing that the imports were causing market disruption.
The Aluminium Association of India in the application had said that the expiry of safeguard duty would cause damage to the domestic industry. The industrial body had also submitted evidences of continued imports and threat to market disruption in support of their claim.
The Directorate General of Safeguard in the Revenue Department said that the investigation has become 'infructuous' upon request for withdrawal of the probe application.
Despite the impose of the safeguard duty, during 2010-11, the import of aluminium flat rolled products and aluminium foil from China surged by 28.87% and 28.36% from last year. Normally a country imposes safeguard duty to provide temporary relief to domestic producers whereas they adjust to the pricing tactics of competitive foreign players.
The S&P CNX Nifty touched high and low of 5,360.25 and 5,314.60, respectively.
The top gainers on the Nifty were HUL up 6.65%, PNB up 1.64%, Sesa Goa up 1.58%, HDFC Bank up 1.52% and Hero MotoCorp up 1.29%. On the flip side, Hindalco down 4.29%, Sterlite Industries down 4.03%, Tata Motors down 3.97%, SAIL down 3.40% and Ambuja Cement down 3.24% were the top losers on the index.
The European markets were trading in
red. France's CAC 40 lost 1.60%, Britain's FTSE 100 down by 1.08%, and
Germany's DAX declined by 1.46%.
After exhibiting a cheerful trade in previous session, all the Asian
equity indices barring KLSE Composite witnessed a choppy trade on Monday
as investors shifted their focus from Europe's debt woes to the US
economy, waiting for the Federal Reserve's monetary policy meeting and
the key employment data that are scheduled to be announced later this
week. Meanwhile, the Nikkei 225 index in Tokyo swung between positive
and negative territory during the trade and ended the session with a cut
of over half a percent after Japan intervened to weaken its currency,
which had earlier hit a new post World War II high against the
greenback. The strong yen has dented earnings of Japanese corporations
such as Nintendo Co. and Toyota Motor Corp. and hurt the economy's
recovery from the March 11 earthquake and tsunami. Moreover, Chinese
Shanghai Composite snapped a five-session winning streak by falling over
0.20 percent. 
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