If you have any query about any particular stock feel free to ask.......... CHEERS !!!
Tuesday, May 31, 2011
TREND FOR 1st JUNE
If you have any query about any particular stock feel free to ask.......... CHEERS !!!
UPWARD JOURNEY
Indian equity indices continued their upward journey gaining more than one and quarter percent hovering at the highest point of the day as investors continued to pile up hefty positions across the board paying no heed towards problem lingering over Eurozone. Leads from markets across the globe too remained encouraging as majority of Asian equity indices exhibited optimistic trends on the back of robust better than expected economic reports while the European counterparts too got off to a sanguine opening, underpinning the sentiments of local investors. Back home, for the full fiscal year to March 2011 India's economy posted growth of 8.5%, a shade below the government's expectation of 8.6% expansion. But investors have gone on to look beyond the GDP numbers and have piled up hefty positions. GDP at factor cost at constant (2004-05) prices in Q4 of 2010-11 is estimated at Rs 13,17,554 crore, as against Rs. 12,22,573 crore in Q4 of 2009-10, showing a growth rate of 7.8% against 9.4% year on year and 8.3% quarter on quarter. The NSE Nifty and BSE Sensex were trading above their psychological 5,550 and 18,400 levels, respectively. The market breadth on the BSE was in favor of advances in the ratio of 1750:961 while 114 scrips remained unchanged.
Morever, the sectors which registered significant growth rates in Q4 of 2010-11 over Q4 of 2009-10 are agriculture, forestry and fishing which surged by 7.5% against 1.1% registered in the same period a year ago, electricity, gas and water supply up by 7.8% against 7.3% seen in Q4 2010. Other sectors which expanded at a good pace are construction at 8.2%, trade, hotels, transport and communication at 9.3%, and financing, insurance, real estate and business services at 9.0%.
The BSE Sensex surged 253.04 points or 1.39% at 18,485.10. The index touched a high and a low of 18,500.30 and 18,266.61 respectively.
The BSE Mid-cap index advanced 1.40% and Small-cap index climbed 0.90%.
On the BSE sectoral front, FMCG up 2.23%, Realty up 1.96%, Bankex up 1.82%, Healthcare up 1.63% and PSU up 1.51% remained the major gainers. While, there were no laggards in the BSE sectoral space.
The top gainers on the Sensex were ITC up 3.14%, Reliance Infra up 2.69%, DLF up 2.64%, HDFC Bank up 2.52% and Jindal Steel up 2.49%. On the flip side Cipla down 0.96% was the only losers on the index.
Meanwhile, Prime Minister Dr. Manmohan Singh is quite optimistic on performance of Indian economy and has expressed confidence that his government will be able to achieve 8.5% growth during the current financial year. "As of now I have not seen any sign that we should change our view with regard to our ability to sustain a growth rate of 8.5%. I am confident that we will be able to sustain a growth rate of 8.5% this year," Dr. Manmohan Singh said.
PM is very positive despite the fact that Indian economy is facing some serious problems and in contrast to his confidence, the finance ministry is expected to revise its forecast for the present fiscal year due to high inflation, unstable crude oil price, slow investment and RBI's aggressive minatory policy stand. The Reserve Bank of India and other international bodies had already revised their forecast downward for India. RBI in its annual credit policy had revised its forecast for India's GDP growth to 8% from 8.6%. Similarly, IMF (International Monetary Fund) and World Bank had revised their forecast for Indian economy and expect that India's economy would grow around 8% and 9% respectively.
With reference to country's agriculture situation and its impact on inflation, Dr. Singh said, "Whatever evidence we have, we expect a normal monsoon. And if the monsoon is normal, it will strengthen our ability to control food inflation." Normal monsoon will help to reduce food inflation by increasing agriculture productivity. Food inflation is serious concern for the Indian economy as it continues to remain more than 8% for last some time. The Wholesale price Index inflation was 8.66% in April, much higher than the central bank's comfort zone of 5-6%.
On oil price scenario, PM Dr. Singh said, 'There are problems with regards to the burden of oil subsidies. They have to be tackled and all these issues will be claiming our attention in weeks and months to come'.
The S&P CNX Nifty jumped 83.70 points or 1.53% at 5,556.80. The index touched high and low of 5,560.25 and 5,489.70 respectively.
The top gainers on the Nifty were, Sun Pharma up 3.29%, ITC up 3.22%, HDFC Bank up 2.92%, JP Associates up 2.73% and ACC up 2.73%. On the other hand, Cipla down 1.20%, R Capital down 0.23% and SAIL down 0.07% were the only losers on the index.
On the Asian front, Shanghai Composite surged by 1.38%, Hang Seng soared 2.16%, Jakarta Composite added 0.22%, KLSE Composite climbed 1.00%, Nikkei 225 spurted 1.99%, Seoul Composite zoomed 2.32%, Straits Times up 0.63%, and Taiwan Weighted jumped 1.87%.
The European markets have opened a positive note as the France's CAC 40 added 1.48%, Germany's DAX rose 1.94% and London's FTSE gained 1.02%.
Morever, the sectors which registered significant growth rates in Q4 of 2010-11 over Q4 of 2009-10 are agriculture, forestry and fishing which surged by 7.5% against 1.1% registered in the same period a year ago, electricity, gas and water supply up by 7.8% against 7.3% seen in Q4 2010. Other sectors which expanded at a good pace are construction at 8.2%, trade, hotels, transport and communication at 9.3%, and financing, insurance, real estate and business services at 9.0%.
The BSE Sensex surged 253.04 points or 1.39% at 18,485.10. The index touched a high and a low of 18,500.30 and 18,266.61 respectively.
The BSE Mid-cap index advanced 1.40% and Small-cap index climbed 0.90%.
On the BSE sectoral front, FMCG up 2.23%, Realty up 1.96%, Bankex up 1.82%, Healthcare up 1.63% and PSU up 1.51% remained the major gainers. While, there were no laggards in the BSE sectoral space.
The top gainers on the Sensex were ITC up 3.14%, Reliance Infra up 2.69%, DLF up 2.64%, HDFC Bank up 2.52% and Jindal Steel up 2.49%. On the flip side Cipla down 0.96% was the only losers on the index.
Meanwhile, Prime Minister Dr. Manmohan Singh is quite optimistic on performance of Indian economy and has expressed confidence that his government will be able to achieve 8.5% growth during the current financial year. "As of now I have not seen any sign that we should change our view with regard to our ability to sustain a growth rate of 8.5%. I am confident that we will be able to sustain a growth rate of 8.5% this year," Dr. Manmohan Singh said.
PM is very positive despite the fact that Indian economy is facing some serious problems and in contrast to his confidence, the finance ministry is expected to revise its forecast for the present fiscal year due to high inflation, unstable crude oil price, slow investment and RBI's aggressive minatory policy stand. The Reserve Bank of India and other international bodies had already revised their forecast downward for India. RBI in its annual credit policy had revised its forecast for India's GDP growth to 8% from 8.6%. Similarly, IMF (International Monetary Fund) and World Bank had revised their forecast for Indian economy and expect that India's economy would grow around 8% and 9% respectively.
With reference to country's agriculture situation and its impact on inflation, Dr. Singh said, "Whatever evidence we have, we expect a normal monsoon. And if the monsoon is normal, it will strengthen our ability to control food inflation." Normal monsoon will help to reduce food inflation by increasing agriculture productivity. Food inflation is serious concern for the Indian economy as it continues to remain more than 8% for last some time. The Wholesale price Index inflation was 8.66% in April, much higher than the central bank's comfort zone of 5-6%.
On oil price scenario, PM Dr. Singh said, 'There are problems with regards to the burden of oil subsidies. They have to be tackled and all these issues will be claiming our attention in weeks and months to come'.
The S&P CNX Nifty jumped 83.70 points or 1.53% at 5,556.80. The index touched high and low of 5,560.25 and 5,489.70 respectively.
The top gainers on the Nifty were, Sun Pharma up 3.29%, ITC up 3.22%, HDFC Bank up 2.92%, JP Associates up 2.73% and ACC up 2.73%. On the other hand, Cipla down 1.20%, R Capital down 0.23% and SAIL down 0.07% were the only losers on the index.
On the Asian front, Shanghai Composite surged by 1.38%, Hang Seng soared 2.16%, Jakarta Composite added 0.22%, KLSE Composite climbed 1.00%, Nikkei 225 spurted 1.99%, Seoul Composite zoomed 2.32%, Straits Times up 0.63%, and Taiwan Weighted jumped 1.87%.
The European markets have opened a positive note as the France's CAC 40 added 1.48%, Germany's DAX rose 1.94% and London's FTSE gained 1.02%.
STRONG START
The Indian equity markets have made a strong start in the early trade tracking positive cues from Asian counterparts as they were trading mostly in the positive terrain at this point of time, indicating strong investors' sentiment. Back home, sustained buying in key heavyweights along with broader indices supported NSE's -- Nifty -- to regain its crucial 5,500 mark. Realty witnessed the maximum gain in trade followed by capital goods and fast moving consumer goods with no losers on the BSE sectoral space. The broader indices were going neck to neck with benchmarks. Meanwhile, Index heavyweight Reliance Industries was trading with a gain of over half a percent while, Reliance Communications and National Aluminum Company declined on poor Q4 results. The market breadth on the BSE was positive; there were 1,143 shares on the gaining side against 508 shares on the losing side while 66 shares remained unchanged. Moreover, the traders are eying for fourth quarter and full year gross domestic product (GDP) numbers for further guidance which is slated to be announced near late morning trade today.
The BSE Sensex opened at 18,266.61; about 32 points higher compared to its previous closing of 18,232.06, and has touched a high of 18,348.92 while low remained its opening.
The index is currently trading at 18,348.68, up by 116.62 points or 0.64%. There were 23 stocks advancing against just 7 declines on the index.
The overall market breadth has made a strong start with 66.57% stocks advancing against 29.59% declines. The broader indices were performing in line with benchmarks; the BSE Mid cap and Small cap indices surged 0.77% and 0.58% respectively.
The top gaining sectoral indices on the BSE were, Realty up by 1.44%, CG up by 1.15%, FMCG up by 1.05%, Bankex up by 0.97% and HC was up by 0.94%. While there were no losers on the index.
The top gainers on the Sensex were DLF up by 1.82%, Wipro up by 1.71%, ITC up by 1.49%, HDFC up by 1.23% and Bajaj Auto was up by 1.17%. On the flip side, Reliance Communication was down by 1.31%, ONGC was down by 1.29%, Cipla was down by 0.97%, M&M was down by 0.90% and Bharti Airtel was down by 0.47%, were only losers on the Sensex.
Meanwhile, the Foreign Direct Investment (FDI) in service sector has decreased by 22.5% in 2010-11, mainly due to slow global recovery and uncertainty in Euro zone. According to Industry Ministry data, FDI in service sector dropped to $3.4 billion in 2010-11. Last year service sector had received FDI worth $4.39 billion. Service sector which contribute more than 50% to the nation's economic growth has the largest share in FDI inflow despite the fall the recent fall.
Experts have cited that the fall in FDI is mainly because of the global financial crisis especially in European market that is making investors cautious of undertaking overseas investments. However, they further opine that investors are gaining their confidence as the global market is recovering and there is good possibility that service sector will attract more FDI in 2011-12.
The FDI in service segment was followed by telecommunication segment ($1.6 billion), automobile ($1.33 billion), power ($1.25 billion), housing and real estate ($1.12 billion) and metallurgical industries ($1.10 billion). Mauritius, Singapore, the US, UK, Netherlands, Japan, Germany and the UAE, among other countries, are the major investors in India.
Falling FDI inflow rate in the economy is alarming for the Indian government. Overall FDI inflow into country has decreased by 25% to $19.4 billion during 2010-11 compared to $25.8 billion in 2009-10. In the same period other emerging economies experienced increase in FDI inflow. To attract more foreign investment in India, government is taking steps like allowing FDI in Limited Liability Bill, permitting the issuance of equity to overseas firms against imported capital goods and machinery, and in latest development government is expected to open its politically sensitive Multi-band retail sector for investment. However, there is still long way to go and the Indian government needs to take a serious policy action, not only in terms of investment friendly policy but also for implementation. There are so many examples of Major FDI project being stuck at implementation stages for years. The well known example is India's largest FDI project worth $12 billion by South Korean steel company Posco, its implementation is delayed by 6 years.
The S&P CNX Nifty opened at 5,492.00; about 19 points higher compared to its previous closing of 5,473.10, and has touched a high and a low of 5,512.35 and 5,489.70 respectively.
The index is currently trading at 5,510.00, higher by 36.90 points or 0.67%. There were 41 stocks advancing against 9 declines on the index.
The top gainers of the Nifty were Wipro up by 1.82%, Dr Reddy up by 1.71%, DLF up by 1.71%, Ambuja Cement up by 1.61% and ITC up by 1.52%.
On the flip side, Reliance Capital down by 2.01%, Reliance Communication down by 1.37%, Cipla down by 0.94%, ONGC down by 0.81% and M&M down by 0.57%, were the major losers on the index.
Most of the Asian equity indices were trading in the red; Hang Seng was up 213.93 points or 0.92% to 23,398.25, KLSE Composite was up 7.06 points or 0.46% to 1,549.90, Nikkei 225 was up 137.07 points or 1.44% to 9,642.04, Straits Times was up 9.56 points or 0.30% to 3,150.16, Seoul Composite was up 32.22 points or 1.54% to 2,126.01 and Taiwan Weighted was up by 103.66 points or 1.17% to 8,927.34.
On the flip side, Jakarta Composite was down 2.45 points or 0.06% to 3,823.69 and Shanghai Composite was down by 3.50 points or 0.13% to 2,702.86.
The BSE Sensex opened at 18,266.61; about 32 points higher compared to its previous closing of 18,232.06, and has touched a high of 18,348.92 while low remained its opening.
The index is currently trading at 18,348.68, up by 116.62 points or 0.64%. There were 23 stocks advancing against just 7 declines on the index.
The overall market breadth has made a strong start with 66.57% stocks advancing against 29.59% declines. The broader indices were performing in line with benchmarks; the BSE Mid cap and Small cap indices surged 0.77% and 0.58% respectively.
The top gaining sectoral indices on the BSE were, Realty up by 1.44%, CG up by 1.15%, FMCG up by 1.05%, Bankex up by 0.97% and HC was up by 0.94%. While there were no losers on the index.
The top gainers on the Sensex were DLF up by 1.82%, Wipro up by 1.71%, ITC up by 1.49%, HDFC up by 1.23% and Bajaj Auto was up by 1.17%. On the flip side, Reliance Communication was down by 1.31%, ONGC was down by 1.29%, Cipla was down by 0.97%, M&M was down by 0.90% and Bharti Airtel was down by 0.47%, were only losers on the Sensex.
Meanwhile, the Foreign Direct Investment (FDI) in service sector has decreased by 22.5% in 2010-11, mainly due to slow global recovery and uncertainty in Euro zone. According to Industry Ministry data, FDI in service sector dropped to $3.4 billion in 2010-11. Last year service sector had received FDI worth $4.39 billion. Service sector which contribute more than 50% to the nation's economic growth has the largest share in FDI inflow despite the fall the recent fall.
Experts have cited that the fall in FDI is mainly because of the global financial crisis especially in European market that is making investors cautious of undertaking overseas investments. However, they further opine that investors are gaining their confidence as the global market is recovering and there is good possibility that service sector will attract more FDI in 2011-12.
The FDI in service segment was followed by telecommunication segment ($1.6 billion), automobile ($1.33 billion), power ($1.25 billion), housing and real estate ($1.12 billion) and metallurgical industries ($1.10 billion). Mauritius, Singapore, the US, UK, Netherlands, Japan, Germany and the UAE, among other countries, are the major investors in India.
Falling FDI inflow rate in the economy is alarming for the Indian government. Overall FDI inflow into country has decreased by 25% to $19.4 billion during 2010-11 compared to $25.8 billion in 2009-10. In the same period other emerging economies experienced increase in FDI inflow. To attract more foreign investment in India, government is taking steps like allowing FDI in Limited Liability Bill, permitting the issuance of equity to overseas firms against imported capital goods and machinery, and in latest development government is expected to open its politically sensitive Multi-band retail sector for investment. However, there is still long way to go and the Indian government needs to take a serious policy action, not only in terms of investment friendly policy but also for implementation. There are so many examples of Major FDI project being stuck at implementation stages for years. The well known example is India's largest FDI project worth $12 billion by South Korean steel company Posco, its implementation is delayed by 6 years.
The S&P CNX Nifty opened at 5,492.00; about 19 points higher compared to its previous closing of 5,473.10, and has touched a high and a low of 5,512.35 and 5,489.70 respectively.
The index is currently trading at 5,510.00, higher by 36.90 points or 0.67%. There were 41 stocks advancing against 9 declines on the index.
The top gainers of the Nifty were Wipro up by 1.82%, Dr Reddy up by 1.71%, DLF up by 1.71%, Ambuja Cement up by 1.61% and ITC up by 1.52%.
On the flip side, Reliance Capital down by 2.01%, Reliance Communication down by 1.37%, Cipla down by 0.94%, ONGC down by 0.81% and M&M down by 0.57%, were the major losers on the index.
Most of the Asian equity indices were trading in the red; Hang Seng was up 213.93 points or 0.92% to 23,398.25, KLSE Composite was up 7.06 points or 0.46% to 1,549.90, Nikkei 225 was up 137.07 points or 1.44% to 9,642.04, Straits Times was up 9.56 points or 0.30% to 3,150.16, Seoul Composite was up 32.22 points or 1.54% to 2,126.01 and Taiwan Weighted was up by 103.66 points or 1.17% to 8,927.34.
On the flip side, Jakarta Composite was down 2.45 points or 0.06% to 3,823.69 and Shanghai Composite was down by 3.50 points or 0.13% to 2,702.86.
Monday, May 30, 2011
TREND FOR 31st MAY
CHEERS !!!
MUNDANE MONDAY
The penultimate trading session of the month turned out to be another sedate opening to the new week, as investors at large opted to remain on the sidelines ahead of India's fourth quarterly gross domestic product (GDP) numbers expected on Tuesday. The short covering rally of the last two trading session fizzled out completely by the end of session as turbulence returned to the equity market after rampant inflation, interest rates hike fears and slow earnings growth dampened the prospects of the equity markets in the near term. Marketmen also feared that any further hike in interest rates in order to bring down inflation will come at the cost of GDP growth which is likely to lead to further downgrades in the earnings estimates. Though, markets reacted positively in the early session to the reports of early arrival of monsoon rains which prompted participants to speculate that farm output may increase and help cool food inflation however, concerns of hike in diesel, kerosene and LPG prices countered the positive sentiments and put pressure on the indices. Leads from the markets across the globe remained uninspiring as Asian markets settled weak after investors appeared oblivious about the market direction lacking any significant upside triggers across markets. The positive opening for stocks in European markets and decline in international crude oil prices helped the Indian frontline indices to claw back into the green terrain but only for a brief period as disappointing earnings announcement by majors like M&M, BPCL and Hindalco pounded on sentiments and snapped the two straight session winning streak on a flat note with a negative bias. The NSE's 50-share broadly followed index Nifty, shut shop with single digit loss, abovethe crucial 5,450 support level while Bombay Stock Exchange's Sensitive Index, or Sensex closed with marginal losses below the psychological 18,250 mark. The broader markets showed great resilience as they outclassed their larger peers by a big margin. The midcap index gained by 0.85% and the smallcap index climbed 0.55% points. On the sectoral front, hefty position build up was witnessed in Healthcare counter which garnered maximum traction and settled after spurting by 2.24% as majors like Sun Pharma and Cipla accumulated 4.46% and 3.55% respectively. The Consumer Durable pack too remained amid the thick of things as it jumped 2.01% after majors like Titan Industries and Gitanjali Gems soared by 3.29% and 3.72% respectively. On the other hand another rate sensitive Auto pocket once again languished at the bottom of the table with 1.50% losses after bellwether Mahindra & Mahindra registered over five percent losses after the company's earnings missed estimates when it posted just a 6.5% increase in quarterly net profit, as soaring raw material costs partly erased gains from record vehicle sales. The Oil and Gas sector too remained under pressure as it lost 0.64% points after heavyweights like Reliance Industries and ONGC failed to make their presence felt and slipped by 0.70% and 1.63% respectively.
On the global front, majority of the Asian equity indices settled in the negative zone with the Chinese benchmark slipping for the eighth straight session amid mounting investor concerns over a possible domestic economic slowdown in the second half of the year. The European equities are trading on a flat to positive note as France's CAC advanced 0.14%, and Germany's DAX rose 0.40%. On the other hand, the screen trading for US index futures indicated that the Dow could open on a positive note.
Earlier on Dalal Street, the benchmark got off to an optimistic opening as sanguinity got spilled over into Monday's session after investors continued to look for opportunities to enter into the market and pile up positions in beaten down but fundamentally strong equities. However, the optimism got fizzled out sooner than later as the frontline indices failed to capitalize on the early momentum and drifted into the red terrain. Thereafter it remained a lackluster session throughout as cautious investors remained reluctant to pile up hefty positions lacking decisive triggers. The key indices consolidated around previous closing levels and eventually snapped the thinly traded session on a weak note with tepid losses. Markets registered scanty volumes of over Rs 0.70 lakh crore on the initial day of a new week. The turnover for NSE F&O segment also remained on the lower side compared to Friday at over 0.58 lakh crore. Market breadth remained positive as there were 1629 shares on the gaining side against 1150 shares on the losing side while 122 shares remained unchanged.
Finally, the BSE Sensex slipped by 34.04 points or 0.19% to settle at 18,232.06 while the S&P CNX Nifty fell by 3.00 points or 0.05% to settle at 5,473.10.
The BSE Sensex touched a high and a low of 18,380.17 and 18,199.52, respectively. The BSE Mid cap and Small cap index down 0.85% and 0.55% respectively.
The top gainers on the Sensex were Cipla up 3.55%, Reliance Communication up 2.94%, DLF up 2.58%, HDFC up 1.90% and Bajaj Auto up 1.03%.
On the flip side, Mahindra & Mahindra down 5.34%, Hindalco Industries down 2.33%, ONGC down 1.63%, Jindal Steel down 0.96% and Tata Motors down 0.96% were the major losers on the index.
Meanwhile, the Foreign Direct Investment (FDI) in service sector has decreased by 22.5% in 2010-11, mainly due to slow global recovery and uncertainty in Euro zone. According to Industry Ministry data, FDI in service sector dropped to $3.4 billion in 2010-11. Last year service sector had received FDI worth $4.39 billion. Service sector which contribute more than 50% to the nation's economic growth has the largest share in FDI inflow despite the fall the recent fall.
Experts have cited that the fall in FDI is mainly because of the global financial crisis especially in European market that is making investors cautious of undertaking overseas investments. However, they further opine that investors are gaining their confidence as the global market is recovering and there is good possibility that service sector will attract more FDI in 2011-12.
The FDI in service segment was followed by telecommunication segment ($1.6 billion), automobile ($1.33 billion), power ($1.25 billion), housing and real estate ($1.12 billion) and metallurgical industries ($1.10 billion). Mauritius, Singapore, the US, UK, Netherlands, Japan, Germany and the UAE, among other countries, are the major investors in India.
Falling FDI inflow rate in the economy is alarming for the Indian government. Overall FDI inflow into country has decreased by 25% to $19.4 billion during 2010-11 compared to $25.8 billion in 2009-10. In the same period other emerging economies experienced increase in FDI inflow. To attract more foreign investment in India, government is taking steps like allowing FDI in Limited Liability Bill, permitting the issuance of equity to overseas firms against imported capital goods and machinery, and in latest development government is expected to open its politically sensitive Multi-band retail sector for investment. However, there is still long way to go and the Indian government needs to take a serious policy action, not only in terms of investment friendly policy but also for implementation. There are so many examples of Major FDI project being stuck at implementation stages for years. The well known example is India's largest FDI project worth $12 billion by South Korean steel company Posco, its implementation is delayed by 6 years.
The top gainers on the BSE sectoral space were Health Care (HC) up 2.24%, Consumer Durables (CD) up 2.01%, Realty up 1.77%, Bankex up 0.50%, and Public Sector Unit (PSU) up 0.47%.
On the flip side, Auto down 1.50%, Oil & Gas down 0.64%, Capital Goods down 0.30%, Metal down 0.17% and FMCG down 0.10% were the only losers in the BSE sectoral space.
Exports of Indian apparels climbed higher to touch the $1 billion mark in the month of April 2011, surging by around 13% year-on-year as it got fortified by huge demand from major importing markets like the US and Europe. According to the data provided by the Apparel Export Promotion Council (AEPC), the apparel exports came in at $972 million in April last year.
Apparel Export Promotion Council (AEPC) Chairman Premal Udani opined that 'there is a good demand for our exports from the US. Also, the European market is picking up.' Udani was also positive on the export prospects for the current fiscal year as he expected exports to touch $14 billion in the current fiscal on the back of good orders not only from the western markets, but also from new markets like Latin America.
The US and Europe together account for a large chunk of around 65% of India's total garment exports. The council expects garments exports' growth to continue in 2011-12. During 2010-11, garments exports grew by 4.4% to $11.1 billion compared to the previous fiscal. The garment industry employs about 70 lakh people in the country, out of which almost half are engaged in the export sector.
Though the global economy has faced many difficulties during the past two years, the export of Indian textile and garment products has managed to weather the storm swiftly. International economists expect the textile and garment production to move from Eastern European countries to Asian countries in 3-4 years. China is presently meeting 70% of the clothing demand of the world but is now reducing production. Economists think this is a good time for countries like India, Bangladesh, Pakistan, Vietnam and Cambodia to expand production and exports and be well prepared and equipped to meet the increasing demand.
The S&P CNX Nifty touched high and low of 5,509.30 and 5,458.60, respectively.
The top gainers of the Nifty were Sun Pharma up 4.83%, Ranbaxy up 4.66%, Cipla up 3.67%, DLF up 2.38% and Reliance Communication up 2.18%.
On the flip side, Mahindra & Mahindra down 5.87%, Hindalco down 2.68%, ONGC down 2.14%, Cairn down 2.03% and Ambuja Cement down 1.73% were the major losers on the index.
European markets were trading mix. France's CAC 40 advanced by 0.13%, Britain's FTSE 100 up 0.98%, and Germany's DAX rose 0.44%.
Most of the Asian equity indices finished their trade in the negative terrain on Monday as investors remained cautious on the back of weak global cues. Oil prices hovered above $100 a barrel in light trading volume ahead of the U.S. Memorial Day holiday. Korean shares edged lower in the trade, pressured by foreign selling on global risk aversion and sharp falls in technology stocks including Hynix Semiconductor while, Shanghai shares fell 0.13 percent - an eighth straight loss - amid mounting investor concerns over a possible domestic economic slowdown in the second half of the year. However, Taiwan stocks snapped the day's trade with a gain of 0.16 percent, paced by gains in cement and glass companies.
On the global front, majority of the Asian equity indices settled in the negative zone with the Chinese benchmark slipping for the eighth straight session amid mounting investor concerns over a possible domestic economic slowdown in the second half of the year. The European equities are trading on a flat to positive note as France's CAC advanced 0.14%, and Germany's DAX rose 0.40%. On the other hand, the screen trading for US index futures indicated that the Dow could open on a positive note.
Earlier on Dalal Street, the benchmark got off to an optimistic opening as sanguinity got spilled over into Monday's session after investors continued to look for opportunities to enter into the market and pile up positions in beaten down but fundamentally strong equities. However, the optimism got fizzled out sooner than later as the frontline indices failed to capitalize on the early momentum and drifted into the red terrain. Thereafter it remained a lackluster session throughout as cautious investors remained reluctant to pile up hefty positions lacking decisive triggers. The key indices consolidated around previous closing levels and eventually snapped the thinly traded session on a weak note with tepid losses. Markets registered scanty volumes of over Rs 0.70 lakh crore on the initial day of a new week. The turnover for NSE F&O segment also remained on the lower side compared to Friday at over 0.58 lakh crore. Market breadth remained positive as there were 1629 shares on the gaining side against 1150 shares on the losing side while 122 shares remained unchanged.
Finally, the BSE Sensex slipped by 34.04 points or 0.19% to settle at 18,232.06 while the S&P CNX Nifty fell by 3.00 points or 0.05% to settle at 5,473.10.
The BSE Sensex touched a high and a low of 18,380.17 and 18,199.52, respectively. The BSE Mid cap and Small cap index down 0.85% and 0.55% respectively.
The top gainers on the Sensex were Cipla up 3.55%, Reliance Communication up 2.94%, DLF up 2.58%, HDFC up 1.90% and Bajaj Auto up 1.03%.
On the flip side, Mahindra & Mahindra down 5.34%, Hindalco Industries down 2.33%, ONGC down 1.63%, Jindal Steel down 0.96% and Tata Motors down 0.96% were the major losers on the index.
Meanwhile, the Foreign Direct Investment (FDI) in service sector has decreased by 22.5% in 2010-11, mainly due to slow global recovery and uncertainty in Euro zone. According to Industry Ministry data, FDI in service sector dropped to $3.4 billion in 2010-11. Last year service sector had received FDI worth $4.39 billion. Service sector which contribute more than 50% to the nation's economic growth has the largest share in FDI inflow despite the fall the recent fall.
Experts have cited that the fall in FDI is mainly because of the global financial crisis especially in European market that is making investors cautious of undertaking overseas investments. However, they further opine that investors are gaining their confidence as the global market is recovering and there is good possibility that service sector will attract more FDI in 2011-12.
The FDI in service segment was followed by telecommunication segment ($1.6 billion), automobile ($1.33 billion), power ($1.25 billion), housing and real estate ($1.12 billion) and metallurgical industries ($1.10 billion). Mauritius, Singapore, the US, UK, Netherlands, Japan, Germany and the UAE, among other countries, are the major investors in India.
Falling FDI inflow rate in the economy is alarming for the Indian government. Overall FDI inflow into country has decreased by 25% to $19.4 billion during 2010-11 compared to $25.8 billion in 2009-10. In the same period other emerging economies experienced increase in FDI inflow. To attract more foreign investment in India, government is taking steps like allowing FDI in Limited Liability Bill, permitting the issuance of equity to overseas firms against imported capital goods and machinery, and in latest development government is expected to open its politically sensitive Multi-band retail sector for investment. However, there is still long way to go and the Indian government needs to take a serious policy action, not only in terms of investment friendly policy but also for implementation. There are so many examples of Major FDI project being stuck at implementation stages for years. The well known example is India's largest FDI project worth $12 billion by South Korean steel company Posco, its implementation is delayed by 6 years.
The top gainers on the BSE sectoral space were Health Care (HC) up 2.24%, Consumer Durables (CD) up 2.01%, Realty up 1.77%, Bankex up 0.50%, and Public Sector Unit (PSU) up 0.47%.
On the flip side, Auto down 1.50%, Oil & Gas down 0.64%, Capital Goods down 0.30%, Metal down 0.17% and FMCG down 0.10% were the only losers in the BSE sectoral space.
Exports of Indian apparels climbed higher to touch the $1 billion mark in the month of April 2011, surging by around 13% year-on-year as it got fortified by huge demand from major importing markets like the US and Europe. According to the data provided by the Apparel Export Promotion Council (AEPC), the apparel exports came in at $972 million in April last year.
Apparel Export Promotion Council (AEPC) Chairman Premal Udani opined that 'there is a good demand for our exports from the US. Also, the European market is picking up.' Udani was also positive on the export prospects for the current fiscal year as he expected exports to touch $14 billion in the current fiscal on the back of good orders not only from the western markets, but also from new markets like Latin America.
The US and Europe together account for a large chunk of around 65% of India's total garment exports. The council expects garments exports' growth to continue in 2011-12. During 2010-11, garments exports grew by 4.4% to $11.1 billion compared to the previous fiscal. The garment industry employs about 70 lakh people in the country, out of which almost half are engaged in the export sector.
Though the global economy has faced many difficulties during the past two years, the export of Indian textile and garment products has managed to weather the storm swiftly. International economists expect the textile and garment production to move from Eastern European countries to Asian countries in 3-4 years. China is presently meeting 70% of the clothing demand of the world but is now reducing production. Economists think this is a good time for countries like India, Bangladesh, Pakistan, Vietnam and Cambodia to expand production and exports and be well prepared and equipped to meet the increasing demand.
The S&P CNX Nifty touched high and low of 5,509.30 and 5,458.60, respectively.
The top gainers of the Nifty were Sun Pharma up 4.83%, Ranbaxy up 4.66%, Cipla up 3.67%, DLF up 2.38% and Reliance Communication up 2.18%.
On the flip side, Mahindra & Mahindra down 5.87%, Hindalco down 2.68%, ONGC down 2.14%, Cairn down 2.03% and Ambuja Cement down 1.73% were the major losers on the index.
European markets were trading mix. France's CAC 40 advanced by 0.13%, Britain's FTSE 100 up 0.98%, and Germany's DAX rose 0.44%.
Most of the Asian equity indices finished their trade in the negative terrain on Monday as investors remained cautious on the back of weak global cues. Oil prices hovered above $100 a barrel in light trading volume ahead of the U.S. Memorial Day holiday. Korean shares edged lower in the trade, pressured by foreign selling on global risk aversion and sharp falls in technology stocks including Hynix Semiconductor while, Shanghai shares fell 0.13 percent - an eighth straight loss - amid mounting investor concerns over a possible domestic economic slowdown in the second half of the year. However, Taiwan stocks snapped the day's trade with a gain of 0.16 percent, paced by gains in cement and glass companies.
MARKETS NEUTRAL
Indian equity indices are wavering around the neutral line in an extremely narrow band in the Monday afternoon session of trade as investors looked to consolidate their positions after the sharp rally in the last couple of sessions. The positive opening for stocks in European markets and decline in international crude oil prices have helped the Indian frontline indices to claw back into the green terrain, paring all the earlier losses. Another positive for the markets was the early arrival of monsoon rains which prompted participants to speculate that farm output may increase and help cool food inflation. The hefty position build up in healthcare and high beta real estate names like Cipla and DLF too prevented the frontline indices from drifting into the red zone while counters like banking and metals contributed their bit in keeping the bourses afloat around previous closing levels. However, partial profit booking was evident in rate sensitive automobile pocket while stocks from oil and gas pack too were not spared either limiting the upside chances for the barometer indices. Index heavyweights like Reliance Industries and ONGC too failed to make their presence felt as they slipped by 0.24% and 1.24% respectively. Leads from the Asian markets remained lackluster as investors appeared oblivious about the market direction amid lack of any significant upside triggers across markets.
Back home, the broader markets showed some resilience as they outclassed their larger peers by quite a margin. The midcap index gained by 0.75% and the smallcap index climbed 0.66% points. The market breadth on the BSE was in favor of advances in the ratio of 1507:1018 while 106 scrips remained unchanged.
The BSE Sensex added 10.86 points or 0.06% at 18,276.96. The index touched a high and a low of 18,380.17 and 18,199.52 respectively.
The BSE Mid-cap index advanced 0.75% and Small-cap index climbed 0.66%.
On the BSE sectoral front, Healthcare up 2.27%, Consumer Durables up 1.43%, Realty up 1.16%, Bankex up 0.63% and Metal up 0.45% remained the major gainers.
While, Auto down 0.30%, Oil and Gas down 0.29%, Power down 0.12%, FMCG down 0.10% and Capital Goods down 0.05% were the only laggards in the BSE sectoral space. The top gainers on the Sensex were Cipla up 3.10%, DLF up 2.11%, HDFC up 1.52%, Sterlite up 1.34% and JP Associates up 0.85%.
On the flip side Reliance Infra down 1.46%, ONGC down 1.24%, Tata Motors down 0.85%, Jindal Steel down 0.71% and ITC down 0.58% were the major losers on the index.
Prime Minister Dr. Manmohan Singh is quite optimistic on performance of Indian economy and has expressed confidence that his government will be able to achieve 8.5% growth during the current financial year. "As of now I have not seen any sign that we should change our view with regard to our ability to sustain a growth rate of 8.5%. I am confident that we will be able to sustain a growth rate of 8.5% this year," Dr. Manmohan Singh said.
PM is very positive despite the fact that Indian economy is facing some serious problems and in contrast to his confidence, the finance ministry is expected to revise its forecast for the present fiscal year due to high inflation, unstable crude oil price, slow investment and RBI's aggressive minatory policy stand. The Reserve Bank of India and other international bodies had already revised their forecast downward for India. RBI in its annual credit policy had revised its forecast for India's GDP growth to 8% from 8.6%. Similarly, IMF (International Monetary Fund) and World Bank had revised their forecast for Indian economy and expect that India's economy would grow around 8% and 9% respectively.
With reference to country's agriculture situation and its impact on inflation, Dr. Singh said, "Whatever evidence we have, we expect a normal monsoon. And if the monsoon is normal, it will strengthen our ability to control food inflation." Normal monsoon will help to reduce food inflation by increasing agriculture productivity. Food inflation is serious concern for the Indian economy as it continues to remain more than 8% for last some time. The Wholesale price Index inflation was 8.66% in April, much higher than the central bank's comfort zone of 5-6%.
On oil price scenario, PM Dr. Singh said, 'There are problems with regards to the burden of oil subsidies. They have to be tackled and all these issues will be claiming our attention in weeks and months to come'. The S&P CNX Nifty rose 7.15 points or 0.13% at 5,483.25. The index touched high and low of 5,509.30 and 5,458.60, respectively.
The top gainers on the Nifty were Sun Pharma up 4.37%, Ranbaxy up 4.23%, Cipla up 3.15%, DLF up 2.26% and Dr Reddy up 1.76%.
On the other hand, Cairn down 2.42%, R Infra down 1.94%, ONGC down 1.29%, SAIL down 1.22% and Tata Motors down 0.93% were the major losers on the index.
On the Asian front, Shanghai Composite rose by 0.28%, Hang Seng added 0.35%, Straits Times up 0.53%, and Taiwan Weighted gained 0.16%.
On the flip side Jakarta Composite eased 0.16%, KLSE Composite slipped 0.21%, Nikkei 225 shed 0.18% and Seoul Composite declined 0.31%.
The European markets have opened a positive note as the France's CAC 40 added 0.17%, Germany's DAX rose 0.26%.
Stock markets in London remained closed on account of Memorial Day holiday.
Back home, the broader markets showed some resilience as they outclassed their larger peers by quite a margin. The midcap index gained by 0.75% and the smallcap index climbed 0.66% points. The market breadth on the BSE was in favor of advances in the ratio of 1507:1018 while 106 scrips remained unchanged.
The BSE Sensex added 10.86 points or 0.06% at 18,276.96. The index touched a high and a low of 18,380.17 and 18,199.52 respectively.
The BSE Mid-cap index advanced 0.75% and Small-cap index climbed 0.66%.
On the BSE sectoral front, Healthcare up 2.27%, Consumer Durables up 1.43%, Realty up 1.16%, Bankex up 0.63% and Metal up 0.45% remained the major gainers.
While, Auto down 0.30%, Oil and Gas down 0.29%, Power down 0.12%, FMCG down 0.10% and Capital Goods down 0.05% were the only laggards in the BSE sectoral space. The top gainers on the Sensex were Cipla up 3.10%, DLF up 2.11%, HDFC up 1.52%, Sterlite up 1.34% and JP Associates up 0.85%.
On the flip side Reliance Infra down 1.46%, ONGC down 1.24%, Tata Motors down 0.85%, Jindal Steel down 0.71% and ITC down 0.58% were the major losers on the index.
Prime Minister Dr. Manmohan Singh is quite optimistic on performance of Indian economy and has expressed confidence that his government will be able to achieve 8.5% growth during the current financial year. "As of now I have not seen any sign that we should change our view with regard to our ability to sustain a growth rate of 8.5%. I am confident that we will be able to sustain a growth rate of 8.5% this year," Dr. Manmohan Singh said.
PM is very positive despite the fact that Indian economy is facing some serious problems and in contrast to his confidence, the finance ministry is expected to revise its forecast for the present fiscal year due to high inflation, unstable crude oil price, slow investment and RBI's aggressive minatory policy stand. The Reserve Bank of India and other international bodies had already revised their forecast downward for India. RBI in its annual credit policy had revised its forecast for India's GDP growth to 8% from 8.6%. Similarly, IMF (International Monetary Fund) and World Bank had revised their forecast for Indian economy and expect that India's economy would grow around 8% and 9% respectively.
With reference to country's agriculture situation and its impact on inflation, Dr. Singh said, "Whatever evidence we have, we expect a normal monsoon. And if the monsoon is normal, it will strengthen our ability to control food inflation." Normal monsoon will help to reduce food inflation by increasing agriculture productivity. Food inflation is serious concern for the Indian economy as it continues to remain more than 8% for last some time. The Wholesale price Index inflation was 8.66% in April, much higher than the central bank's comfort zone of 5-6%.
On oil price scenario, PM Dr. Singh said, 'There are problems with regards to the burden of oil subsidies. They have to be tackled and all these issues will be claiming our attention in weeks and months to come'. The S&P CNX Nifty rose 7.15 points or 0.13% at 5,483.25. The index touched high and low of 5,509.30 and 5,458.60, respectively.
The top gainers on the Nifty were Sun Pharma up 4.37%, Ranbaxy up 4.23%, Cipla up 3.15%, DLF up 2.26% and Dr Reddy up 1.76%.
On the other hand, Cairn down 2.42%, R Infra down 1.94%, ONGC down 1.29%, SAIL down 1.22% and Tata Motors down 0.93% were the major losers on the index.
On the Asian front, Shanghai Composite rose by 0.28%, Hang Seng added 0.35%, Straits Times up 0.53%, and Taiwan Weighted gained 0.16%.
On the flip side Jakarta Composite eased 0.16%, KLSE Composite slipped 0.21%, Nikkei 225 shed 0.18% and Seoul Composite declined 0.31%.
The European markets have opened a positive note as the France's CAC 40 added 0.17%, Germany's DAX rose 0.26%.
Stock markets in London remained closed on account of Memorial Day holiday.
POSITIVE START
The Indian equity markets have made a positive start in the early trade on the back of buying witnessed in key heavyweights like, Reliance Industries, ICICI bank and L&T. However, the global cues were not much supportive as, the US markets managed the close of modest gains on Friday, though the economic news remained mixed while; Asian counterparts were trading mixed at this point of time. Back home, sustained buying mostly in all the heavyweights along with broader indices supported NSE's -- Nifty -- to regain its crucial 5,500 mark. Realty witnessed the maximum gain in trade followed by healthcare and consumer durables with no losers on the BSE sectoral space. The broader indices were outperforming benchmarks. Meanwhile, Mahindra & Mahindra (M&M), BPCL, Indian Oil Corporation, National Aluminium Company and ONGC rose ahead of their Q4 results slated to be released today. The market breadth on the BSE was positive; there were 1,197 shares on the gaining side against 470 shares on the losing side while 58 shares remained unchanged.
The BSE Sensex opened at 18,319.74; about 53 points higher compared to its previous closing of 18,266.10, and has touched a high and a low of 18,380.17 and 18,317.16, respectively.
The index is currently trading at 18,353.76, up by 87.66 points or 0.48%. There were 26 stocks advancing against just 4 declines on the index.
The overall market breadth has made a strong start with 69.39% stocks advancing against 27.25% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 0.96% and 0.85% respectively.
The top gaining sectoral indices on the BSE were, Realty up by 1.48%, HC up by 1.20%, CD up by 1.02%, Bankex up by 0.88% and PSU was up by 0.79%. While there were no losers on the index.
The top gainers on the Sensex were DLF up by 2.44%, Sterlite Industries up by 1.97%, Jaiprakash Associates up by 1.40%, Cipla up by 1.30% and M&M was up by 1.26%. While, Reliance Infra was down by 0.74%, Bharti Airtel was down by 0.74%, ITC was down by 0.48% and Tata Steel was down by 0.48%, were only losers on the Sensex.
Meanwhile, the government is expected to revise its GDP forecast of 9% for the current financial year. The downward revision is expected because of the rising global commodity prices and high inflation. Earlier, many international and national organizations had also revised downward their forecast of growth on account of high inflation, the steepest being the Goldman Sachs that had cut growth estimate for the 2011-12 by over a percent to 7.8% from 8.7% estimated originally. Another international organization, OECD has projected the Indian economy to expand 8.5% in 2011-12, much lower than the growth of 9.6 percent witnessed in 2010-11 financial year. Two other international bodies, the International Monetary Fund and the World Bank too had forecast that India's economy would grow at 8 per cent and 9 per cent, respectively. While, on the domestic front the Reserve Bank of India has reduced the growth target of Indian economy at about 8% in the current financial year after it increased the policy rates for the ninth time in over a year.
The mid-term review of the economy was due in October 2011, but the finance ministry has decided to review its forecast next month itself because of the fast changing economic conditions. Chief Economist Advisor Kaushik Basu said, "This year, because of changing global scenario and many other important organisations having downgraded India's growth rate, we have decided that we would go back and take another look at our (GDP) numbers in mid-June". However, Basu expects a small revision in the forecast. Finance Minister has also hinted that high inflation and any further rise in crude oil prices may pull down India's economic growth to 8% from a projected 9%.
The Wholesale Price Index inflation marginally decreased to 8.66% in April from over 9.04 % in March but may accelerate again after the increase in petrol prices. The government is likely to increase the prices of diesel, kerosene and LPG, in order to reduce the revenue losses of Oil Marketing Companies.
The S&P CNX Nifty opened at 5,493.75; about 17 points higher compared to its previous closing of 5,476.10, and has touched a high and a low of 5,509.30 and 5,489.70 respectively.
The index is currently trading at 5,504.25, higher by 28.15 points or 0.51%. There were 42 stocks advancing against just 8 declines on the index.
The top gainers of the Nifty were Sun Pharma up by 3.16%, DLF up by 2.33%, Sterlite Industries up by 2.03%, Reliance Industries up by 1.60% and JP Associates up by 1.40%.
Cairn down by 2.31%, Reliance Infra down by 0.97%, Bharti Airtel down by 0.86%, Tata Steel down by 0.37% and ITC down by 0.29%, were the major losers on the index.
Asian markets were trading mixed; Shanghai Composite was up 12.84 points or 0.47% to 2,722.78, Hang Seng was up 118.50 points or 0.51% to 23,236.57, Straits Times was up 18.13 points or 0.58% to 3,153.65 and Taiwan Weighted was up by 16.19 points or 0.18% to 8,826.19.
On the flip side, Jakarta Composite was down 6.12 points or 0.16% to 3,826.26, KLSE Composite was down 0.49 points or 0.03% to 1,548.20, Nikkei 225 was down 17.47 points or 0.18% to 9,504.47 and Seoul Composite was down by 5.94 points or 0.28% to 2,094.30.
The BSE Sensex opened at 18,319.74; about 53 points higher compared to its previous closing of 18,266.10, and has touched a high and a low of 18,380.17 and 18,317.16, respectively.
The index is currently trading at 18,353.76, up by 87.66 points or 0.48%. There were 26 stocks advancing against just 4 declines on the index.
The overall market breadth has made a strong start with 69.39% stocks advancing against 27.25% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 0.96% and 0.85% respectively.
The top gaining sectoral indices on the BSE were, Realty up by 1.48%, HC up by 1.20%, CD up by 1.02%, Bankex up by 0.88% and PSU was up by 0.79%. While there were no losers on the index.
The top gainers on the Sensex were DLF up by 2.44%, Sterlite Industries up by 1.97%, Jaiprakash Associates up by 1.40%, Cipla up by 1.30% and M&M was up by 1.26%. While, Reliance Infra was down by 0.74%, Bharti Airtel was down by 0.74%, ITC was down by 0.48% and Tata Steel was down by 0.48%, were only losers on the Sensex.
Meanwhile, the government is expected to revise its GDP forecast of 9% for the current financial year. The downward revision is expected because of the rising global commodity prices and high inflation. Earlier, many international and national organizations had also revised downward their forecast of growth on account of high inflation, the steepest being the Goldman Sachs that had cut growth estimate for the 2011-12 by over a percent to 7.8% from 8.7% estimated originally. Another international organization, OECD has projected the Indian economy to expand 8.5% in 2011-12, much lower than the growth of 9.6 percent witnessed in 2010-11 financial year. Two other international bodies, the International Monetary Fund and the World Bank too had forecast that India's economy would grow at 8 per cent and 9 per cent, respectively. While, on the domestic front the Reserve Bank of India has reduced the growth target of Indian economy at about 8% in the current financial year after it increased the policy rates for the ninth time in over a year.
The mid-term review of the economy was due in October 2011, but the finance ministry has decided to review its forecast next month itself because of the fast changing economic conditions. Chief Economist Advisor Kaushik Basu said, "This year, because of changing global scenario and many other important organisations having downgraded India's growth rate, we have decided that we would go back and take another look at our (GDP) numbers in mid-June". However, Basu expects a small revision in the forecast. Finance Minister has also hinted that high inflation and any further rise in crude oil prices may pull down India's economic growth to 8% from a projected 9%.
The Wholesale Price Index inflation marginally decreased to 8.66% in April from over 9.04 % in March but may accelerate again after the increase in petrol prices. The government is likely to increase the prices of diesel, kerosene and LPG, in order to reduce the revenue losses of Oil Marketing Companies.
The S&P CNX Nifty opened at 5,493.75; about 17 points higher compared to its previous closing of 5,476.10, and has touched a high and a low of 5,509.30 and 5,489.70 respectively.
The index is currently trading at 5,504.25, higher by 28.15 points or 0.51%. There were 42 stocks advancing against just 8 declines on the index.
The top gainers of the Nifty were Sun Pharma up by 3.16%, DLF up by 2.33%, Sterlite Industries up by 2.03%, Reliance Industries up by 1.60% and JP Associates up by 1.40%.
Cairn down by 2.31%, Reliance Infra down by 0.97%, Bharti Airtel down by 0.86%, Tata Steel down by 0.37% and ITC down by 0.29%, were the major losers on the index.
Asian markets were trading mixed; Shanghai Composite was up 12.84 points or 0.47% to 2,722.78, Hang Seng was up 118.50 points or 0.51% to 23,236.57, Straits Times was up 18.13 points or 0.58% to 3,153.65 and Taiwan Weighted was up by 16.19 points or 0.18% to 8,826.19.
On the flip side, Jakarta Composite was down 6.12 points or 0.16% to 3,826.26, KLSE Composite was down 0.49 points or 0.03% to 1,548.20, Nikkei 225 was down 17.47 points or 0.18% to 9,504.47 and Seoul Composite was down by 5.94 points or 0.28% to 2,094.30.
Saturday, May 28, 2011
TREND FOR 30th MAY
CHEERS !!!
MARKET SLAMS DOUBLE CENTURY
After the late short covering that led the Indian frontline indices to bounce back sharply on the F&O expiry day, the sanguinity got spilled over into Friday's session too as investors continued to look for opportunities to enter into the market and pile up positions in beaten down but fundamentally strong stocks. Bullishness seemed to be returning to the markets as investors aggressively piled up positions in key heavyweight stocks as they speculated a lot of headwinds have already been factored in. The spurt in benchmarks not only was due to sanguine leads from the global markets but also because of the bottom fishing in rate sensitive, banking and realty counters and oil and gas stocks which underpinned the benchmarks comfortably over the psychological 5,450 and 18,250 levels. While skeptics doubted the recent rally of Indian markets as they believe macroeconomic headwinds like slowing economic growth rate, rising borrowing costs, towering inflation numbers, elevated international crude oil prices and euro-zone worries are going to make it difficult for an emerging market like India to outperform the global markets. Leads from markets across the globe too remained encouraging as majority of Asian equity indices exhibited positive trends while the European counterparts too traded on an optimistic note, which persuaded bulls to come out of their shelter. Back home, the NSE's 50-share broadly followed index Nifty, shut shop with around a percent gains after recapturing the crucial 5,450 support level while Bombay Stock Exchange's Sensitive Index, Sensex slammed a double century and closed above the psychological 18,250 mark. By the end of trade, the broader markets matched their performance with larger peers as the midcap index surged 1.48% while the smallcap index closed with 0.89% gains. On the sectoral front, the high beta Realty stocks garnered maximum traction and settled after spurting 3.60% as majors like DLF and Unitech accumulated 4.11%, and 4.09% respectively. The rate sensitive Bankex too remained amid the thick of things as it zoomed 2.46% after majors like ICICI Bank and SBI soared by 4.23% and 2.09% respectively. While Index heavyweight Reliance Industries too made its presence felt as it amassed around one and half percent on reports that DE Shaw & Co., the $20 billion hedge fund founded by David Shaw, may partner with the Mukesh Ambani-run company to offer investment banking, derivatives trading and alternate-asset management in India next year. Sesa Goa too surged 1.71% after reports that iron ore export were set to resume from Karnataka while the all stocks from the ADAG pack bounced sharply in the session. On the other hand another rate sensitive Auto pocket languished at the bottom of the table with 0.85% losses after bellwether Tata Motors, the biggest truck-maker, registered over six percent losses after the quarterly results showed margins for the three months ended March 31 narrowed from the quarter ended December because of higher raw-material costs.
On the global front, majority of the Asian equity indices settled in the positive zone with Hong Kong's benchmark grabbing the top gainer's position after gaining around a percent point and settling higher for the third straight session. The European equities are trading on an optimistic note as France's CAC advanced 0.97%, Britain's FTSE 100 climbed 0.90% and Germany's DAX rose 0.47%. On the other hand, the screen trading for US index futures indicated that the Dow could open on a flat note.
Earlier on Dalal Street, the benchmark got off to an optimistic opening in line with the sanguine trends that prevailed in most Asian markets as investors in the region were largely influenced by the overnight Wall Street which rose despite weak economic reports, mainly on the back of strong earnings that helped push stocks higher. After the positive opening the frontline indices oscillated in a narrow band through the morning session around the psychological 8,450 and 18,200 levels. However, investors showed renewed vigor to build up positions in the afternoon session of trade as the key indices showed signs of capturing even the 5,500 and 18,300 levels. However, mild profit booking in the late hours of trade ensured that the frontline indices go home off the day's high levels yet with over a percent gains for the second session on a run. On expected lines, markets registered low volumes of over Rs 0.92 lakh crore on the first day of a new F&O series. The turnover for NSE F&O segment also remained on the lower side compared to Thursday at over 0.77 lakh crore. Market breadth remained positive as there were 1496 shares on the gaining side against 1275 shares on the losing side while 125 shares remained unchanged.
Finally, the BSE Sensex soared by 221.46 points or 1.23% to settle at 18,266.10 while the S&P CNX Nifty surged 63.75 points or 1.18% to settle at 5,476.10.
The BSE Sensex touched a high and a low of 18,298.64 and 18,087.16, respectively.The BSE Mid cap and Small cap index gained 1.48% and 0.89% respectively.
The top gainers on the Sensex were Hindalco Industries up 5.78%, Reliance Communication up 5.66%, ICICI Bank up 4.23%, DLF up 4.11% and Reliance Infra up 3.85%.
On the flip side, Tata Motors down 6.25%, Hindustan Unilever down 1.27%, NTPC down 1.03%, Hero Honda down 0.80% and Cipla down 0.19% were the major losers on the index.
India's handicrafts export saw a decent growth of around 14% to $204 million in April 2011 year-on-year (Y-O-Y) basis, mainly driven by the demand from traditional markets like Europe and US. According to the Export Promotion Council for Handicraft (EPCH) data, last year during the same period India's handcraft export were around $179.9 million. The EPCH and exporters are hopeful that exports would continue to grow in the present financial year due to increasing demand from the traditional as well as from the new emerging markets.
'We expect the exports to touch $2.7 billion in 2011-12 due to increasing demand not only from the US and Europe, but also from emerging markets like Middle East, Latin America and Africa,' EPCH Executive Director Rakesh Kumar said.
The items which registered the maximum growth were wood wares up by 26.9%, followed by jewellery around 21%, shawls as art wares around 19%, miscellaneous handicraft 15% and metal wares by 13.49%.
The growth in export for the month of April follows the impressive jump of about 26% to $2.3 billion in April-March 2010-11, as compared to a year ago. In line with the country's total merchandise exports which registered the highest ever growth of 37.5% to $245.9 billion in 2010-11. Approximately 60% of country's handicraft is exported to Europe and US, but the whole year growth was driven by the growing demand from new markets like Latin America and Africa. As to reduce dependence on western markets, the exporters started exploring new markets like Latin America, Asia and Africa. The government too has introduced incentives for exporters to diversify and boost their trade with emerging markets like Latin America and Caribbean region.
The top gainers on the BSE sectoral space were Realty up 3.60%, Bankex up 2.46%, Metal up 1.98%, Oil & Gas up 1.59%, and PSU up 1.24%.
On the flip side, Auto down 0.85% and Consumer Durables (CD) down 0.76% were the only losers in the BSE sectoral space.
Lack of consensus between the Ministry of Defence (MoD) and Ministry of Commerce and Industry has casted a shadow over the fate of increasing Foreign direct investment (FDI) ceiling in the sensitive sector for a long time now. Given the strategic nature of the subject, several brainstorming sessions took place yet it still remains to be seen as to when a formal proposal will be moved in this regard.
It has been over a year that the Department of Industrial Policy and Promotion (DIPP), under the Ministry of Commerce and Industry, put out a discussion paper on raising foreign direct investment in defence sector to 74%, in order to enable global defence entities to set up manufacturing units in the country. However, the proposal did not find many supporters from the Ministry of Defence (MoD) which is against raising the limit to the extent DIPP has proposed but showed some inclination towards raising the cap to 49%.
Currently, foreign direct investment upto 26% is allowed in defence production. Hindustan Aeronautic, Ordnance Factory Board and Bharat Electronics are the only three Indian companies which make it to the list of top 100 defence companies in the world accounting for a meager 1.1% share of the global industry. The government is the sole purchaser of defence equipment spending around 15% of the central government expenditure.
The S&P CNX Nifty touched high and low of 5,485.80 and 5,413.60, respectively.
The top gainers of the Nifty were Hindalco up 6.57%, IDFC up 6.24%, Reliance Communication up 5.92%, Reliance Power up 4.77% and ICICI Bank up 4.53%.
On the flip side, Tata Motors down 6.54%, Hindustan Unilever down 1.86%, Ambuja Cement down 1.80%, GAIL down 1.72% and Hero Honda down 1.71% were the major losers on the index.
European markets were trading in green. France's CAC 40 advanced 0.80%, Britain's FTSE 100 up 0.90%, and Germany's DAX rose 0.46%.
The Asian markets made a mixed closing on Friday, though the start was good but some volatility crept in the Japanese and Chinese markets that could not manage to end in green otherwise all other major indices closed in green on the back of good corporate profits numbers and they overlooked the weak economic data from the US. The yen appreciated 0.4 percent against the dollar and weighed on the markets on the same time the country had its outlook lowered to negative from stable by Fitch Ratings. Japan's gross government debt reached 210 percent of GDP by end-2010, by far the highest ratio for any Fitch-rated sovereign.
On the global front, majority of the Asian equity indices settled in the positive zone with Hong Kong's benchmark grabbing the top gainer's position after gaining around a percent point and settling higher for the third straight session. The European equities are trading on an optimistic note as France's CAC advanced 0.97%, Britain's FTSE 100 climbed 0.90% and Germany's DAX rose 0.47%. On the other hand, the screen trading for US index futures indicated that the Dow could open on a flat note.
Earlier on Dalal Street, the benchmark got off to an optimistic opening in line with the sanguine trends that prevailed in most Asian markets as investors in the region were largely influenced by the overnight Wall Street which rose despite weak economic reports, mainly on the back of strong earnings that helped push stocks higher. After the positive opening the frontline indices oscillated in a narrow band through the morning session around the psychological 8,450 and 18,200 levels. However, investors showed renewed vigor to build up positions in the afternoon session of trade as the key indices showed signs of capturing even the 5,500 and 18,300 levels. However, mild profit booking in the late hours of trade ensured that the frontline indices go home off the day's high levels yet with over a percent gains for the second session on a run. On expected lines, markets registered low volumes of over Rs 0.92 lakh crore on the first day of a new F&O series. The turnover for NSE F&O segment also remained on the lower side compared to Thursday at over 0.77 lakh crore. Market breadth remained positive as there were 1496 shares on the gaining side against 1275 shares on the losing side while 125 shares remained unchanged.
Finally, the BSE Sensex soared by 221.46 points or 1.23% to settle at 18,266.10 while the S&P CNX Nifty surged 63.75 points or 1.18% to settle at 5,476.10.
The BSE Sensex touched a high and a low of 18,298.64 and 18,087.16, respectively.The BSE Mid cap and Small cap index gained 1.48% and 0.89% respectively.
The top gainers on the Sensex were Hindalco Industries up 5.78%, Reliance Communication up 5.66%, ICICI Bank up 4.23%, DLF up 4.11% and Reliance Infra up 3.85%.
On the flip side, Tata Motors down 6.25%, Hindustan Unilever down 1.27%, NTPC down 1.03%, Hero Honda down 0.80% and Cipla down 0.19% were the major losers on the index.
India's handicrafts export saw a decent growth of around 14% to $204 million in April 2011 year-on-year (Y-O-Y) basis, mainly driven by the demand from traditional markets like Europe and US. According to the Export Promotion Council for Handicraft (EPCH) data, last year during the same period India's handcraft export were around $179.9 million. The EPCH and exporters are hopeful that exports would continue to grow in the present financial year due to increasing demand from the traditional as well as from the new emerging markets.
'We expect the exports to touch $2.7 billion in 2011-12 due to increasing demand not only from the US and Europe, but also from emerging markets like Middle East, Latin America and Africa,' EPCH Executive Director Rakesh Kumar said.
The items which registered the maximum growth were wood wares up by 26.9%, followed by jewellery around 21%, shawls as art wares around 19%, miscellaneous handicraft 15% and metal wares by 13.49%.
The growth in export for the month of April follows the impressive jump of about 26% to $2.3 billion in April-March 2010-11, as compared to a year ago. In line with the country's total merchandise exports which registered the highest ever growth of 37.5% to $245.9 billion in 2010-11. Approximately 60% of country's handicraft is exported to Europe and US, but the whole year growth was driven by the growing demand from new markets like Latin America and Africa. As to reduce dependence on western markets, the exporters started exploring new markets like Latin America, Asia and Africa. The government too has introduced incentives for exporters to diversify and boost their trade with emerging markets like Latin America and Caribbean region.
The top gainers on the BSE sectoral space were Realty up 3.60%, Bankex up 2.46%, Metal up 1.98%, Oil & Gas up 1.59%, and PSU up 1.24%.
On the flip side, Auto down 0.85% and Consumer Durables (CD) down 0.76% were the only losers in the BSE sectoral space.
Lack of consensus between the Ministry of Defence (MoD) and Ministry of Commerce and Industry has casted a shadow over the fate of increasing Foreign direct investment (FDI) ceiling in the sensitive sector for a long time now. Given the strategic nature of the subject, several brainstorming sessions took place yet it still remains to be seen as to when a formal proposal will be moved in this regard.
It has been over a year that the Department of Industrial Policy and Promotion (DIPP), under the Ministry of Commerce and Industry, put out a discussion paper on raising foreign direct investment in defence sector to 74%, in order to enable global defence entities to set up manufacturing units in the country. However, the proposal did not find many supporters from the Ministry of Defence (MoD) which is against raising the limit to the extent DIPP has proposed but showed some inclination towards raising the cap to 49%.
Currently, foreign direct investment upto 26% is allowed in defence production. Hindustan Aeronautic, Ordnance Factory Board and Bharat Electronics are the only three Indian companies which make it to the list of top 100 defence companies in the world accounting for a meager 1.1% share of the global industry. The government is the sole purchaser of defence equipment spending around 15% of the central government expenditure.
The S&P CNX Nifty touched high and low of 5,485.80 and 5,413.60, respectively.
The top gainers of the Nifty were Hindalco up 6.57%, IDFC up 6.24%, Reliance Communication up 5.92%, Reliance Power up 4.77% and ICICI Bank up 4.53%.
On the flip side, Tata Motors down 6.54%, Hindustan Unilever down 1.86%, Ambuja Cement down 1.80%, GAIL down 1.72% and Hero Honda down 1.71% were the major losers on the index.
European markets were trading in green. France's CAC 40 advanced 0.80%, Britain's FTSE 100 up 0.90%, and Germany's DAX rose 0.46%.
The Asian markets made a mixed closing on Friday, though the start was good but some volatility crept in the Japanese and Chinese markets that could not manage to end in green otherwise all other major indices closed in green on the back of good corporate profits numbers and they overlooked the weak economic data from the US. The yen appreciated 0.4 percent against the dollar and weighed on the markets on the same time the country had its outlook lowered to negative from stable by Fitch Ratings. Japan's gross government debt reached 210 percent of GDP by end-2010, by far the highest ratio for any Fitch-rated sovereign.
Friday, May 27, 2011
MARKETS EXTEND GAINS
The domestic equity markets have extended their gains for the new series, despite some mixed global cues.Though, the US markets closed modestly higher overnight the Asian markets have made a mixed start. But the broad based buying that appeared in the local markets in last hour of trade in previous session, remain intact and the index heavy weights are showing good buying with most of them moving higher in early trade. The broader indices too are supporting the overall breadth and are up in tandem with their larger peers. Rate sensitive realty along with oil & gas gauges have gained the maximum traction, while the Auto sector is the only one languishing in red, mainly led by the plunge in the heavy weight Tata Motors.The consolidated profit after tax of the Tata Motors group for the year shot up to Rs 9,274 crore in 2010-11, up by 260.71% from a profit of Rs 2,571 crore in the previous year.The company has approved sub-division of its share from Rs 10 per share to 5 shares of Rs 2 each that has led the prices down. The PSU oil companies have continued their upmove on buzz of EGoM meet on June 9 and decline in crude prices; however with global crude oil prices on the downswing, the government may adopt a wait-and-watch policy before taking the political plunge to raise prices of controlled petroleum products. Also there is no official confirmation from the EGoM chairman's office to freeze that date for the meeting on June 9.
The BSE Sensex opened at 18,105.61; about 60 points higher compared to its previous closing of 18,044.64, and has touched a high and low of 18,210.42 and 18,087.16 respectively. The index is currently trading at 18,178.19, up by 133.55 points or 0.74%. There were 26 stocks advancing against 4 declines on the index.
The overall market breadth has made a strong start with 1117 stocks advancing against 497 declines. The broader indices too were keeping their momentum up; the BSE Mid cap and Small cap indices were up by 0.70% and 0.58% respectively.
The top gaining sectoral indices on the BSE were, Realty and Oil & Gas up by 1% each, Bankex up by 0.98%, CG up by 0.93% and HC up by 0.91%. While, Auto down by 1.17%, remains the lone losers on the index.
The top gainers on the Sensex were Hindalco Inds up by 2.76%, ICICI Bank 2.18%, ONGC up by 1.62%, DLF up by 1.60% and L&T was up by 1.55%On the flip side, Tata Motors down by 5.54%, Hero Honda down by 1.09%, Maruti Suzuki down by 0.74% and HUL down by 0.69% were the losers on the index.
Meanwhile, food inflation surged to the highest level in four weeks at 8.55% for the week ended May 14, as prices of fruits, cereals and protein-based items escalated. During the week ended May 14, cereals became costlier by 5.03% year-on-year and prices of onions were up by 8.32%. Moreover, prices of fruit rose by 32.37%, milk by 5.53% and eggs, meat and fish by 8.26%. Meanwhile, though the Index for 'non-food articles' group has declined marginally but the government and Reserve Bank had said that in the months to come, inflationary pressure would be more from core (non-food) items on account of high global prices of commodities, particularly crude.
According to the data released by the ministry of commerce and industry on Thursday, food price index rose 8.55% on annual basis during week-ended May 14, picking up pace from an annual rise of 7.47% recorded in the previous week. Food inflation was at 21.55% in the year-ago period. Meanwhile, the food prices index jumped by 0.6% to 186.7 from 185.5 during the previous week due to higher prices of poultry chicken (5%), jowar (4%), fish-marine (3%), mutton, barley and maize (2% each) and milk (1%). However, the prices of tea (5%), arhar and ragi (2% each) and masur and urad (1% each) declined.
The S&P CNX Nifty opened at 5,413.70, marginally higher compared to its previous closing of 5,412.35, and has touched a high and low of 5,457.90 and 5,413.60 respectively. The index is currently trading at 5,452.50, up by 40.15 points or 0.74%. There were 40 stocks advancing against 10 declines on the index.
The top gainers of the Nifty were Hindalco up by 2.95%, RPower up by 2.32%, HCL Tech up by 2.30%, ICICI Bank up by 1.97% and IDFC was up by 1.67%.
Tata Motors down by 4.90%, PNB down by 1.76%, Hero Honda down by 1.56%, HUL down by 1.36% and Ambuja Cements down by 0.79%, were the major losers on the index.
All the Asian markets, barring Shanghai Composite all the other indices are trading in the green; Hang Seng gained 0.99%, Jakarta Composite inched higher by 0.21%, KLSE Composite was up by 0.49%, Nikkei 225 surged by 0.18%, Seoul Composite gained 0.63%, Straits Times was up by 0.88% and Taiwan Weighted advanced by 0.71%.
On the flipside only Shanghai Composite was trading lower by 0.10%.
The BSE Sensex opened at 18,105.61; about 60 points higher compared to its previous closing of 18,044.64, and has touched a high and low of 18,210.42 and 18,087.16 respectively. The index is currently trading at 18,178.19, up by 133.55 points or 0.74%. There were 26 stocks advancing against 4 declines on the index.
The overall market breadth has made a strong start with 1117 stocks advancing against 497 declines. The broader indices too were keeping their momentum up; the BSE Mid cap and Small cap indices were up by 0.70% and 0.58% respectively.
The top gaining sectoral indices on the BSE were, Realty and Oil & Gas up by 1% each, Bankex up by 0.98%, CG up by 0.93% and HC up by 0.91%. While, Auto down by 1.17%, remains the lone losers on the index.
The top gainers on the Sensex were Hindalco Inds up by 2.76%, ICICI Bank 2.18%, ONGC up by 1.62%, DLF up by 1.60% and L&T was up by 1.55%On the flip side, Tata Motors down by 5.54%, Hero Honda down by 1.09%, Maruti Suzuki down by 0.74% and HUL down by 0.69% were the losers on the index.
Meanwhile, food inflation surged to the highest level in four weeks at 8.55% for the week ended May 14, as prices of fruits, cereals and protein-based items escalated. During the week ended May 14, cereals became costlier by 5.03% year-on-year and prices of onions were up by 8.32%. Moreover, prices of fruit rose by 32.37%, milk by 5.53% and eggs, meat and fish by 8.26%. Meanwhile, though the Index for 'non-food articles' group has declined marginally but the government and Reserve Bank had said that in the months to come, inflationary pressure would be more from core (non-food) items on account of high global prices of commodities, particularly crude.
According to the data released by the ministry of commerce and industry on Thursday, food price index rose 8.55% on annual basis during week-ended May 14, picking up pace from an annual rise of 7.47% recorded in the previous week. Food inflation was at 21.55% in the year-ago period. Meanwhile, the food prices index jumped by 0.6% to 186.7 from 185.5 during the previous week due to higher prices of poultry chicken (5%), jowar (4%), fish-marine (3%), mutton, barley and maize (2% each) and milk (1%). However, the prices of tea (5%), arhar and ragi (2% each) and masur and urad (1% each) declined.
The S&P CNX Nifty opened at 5,413.70, marginally higher compared to its previous closing of 5,412.35, and has touched a high and low of 5,457.90 and 5,413.60 respectively. The index is currently trading at 5,452.50, up by 40.15 points or 0.74%. There were 40 stocks advancing against 10 declines on the index.
The top gainers of the Nifty were Hindalco up by 2.95%, RPower up by 2.32%, HCL Tech up by 2.30%, ICICI Bank up by 1.97% and IDFC was up by 1.67%.
Tata Motors down by 4.90%, PNB down by 1.76%, Hero Honda down by 1.56%, HUL down by 1.36% and Ambuja Cements down by 0.79%, were the major losers on the index.
All the Asian markets, barring Shanghai Composite all the other indices are trading in the green; Hang Seng gained 0.99%, Jakarta Composite inched higher by 0.21%, KLSE Composite was up by 0.49%, Nikkei 225 surged by 0.18%, Seoul Composite gained 0.63%, Straits Times was up by 0.88% and Taiwan Weighted advanced by 0.71%.
On the flipside only Shanghai Composite was trading lower by 0.10%.
Thursday, May 26, 2011
TREND FOR 27th MAY
CHEERS !!!
SHORT COVERING
The May series Futures and Options contract settlement turned out to be encouraging event for the Indian frontline indices which made an elegant intraday U-turn in the last hour of trade snapping the session with strong gains of a percentage point. The late short covering rally in Oil and Gas counter on reports that the empowered group of ministers (EGoM) on the oil sector is likely to meet on June 9 to deliberate on the issue of raising domestic prices of retail fuels including diesel, cooking gas and kerosene gave the much needed fillip in the dying hours of trade. Oil upstream company ONGC remained the best performer not only for the oil and gas index but for the benchmarks as well, since it spurted by 4.44% after the reports that its subsidy sharing burden will reduce after the government hikes diesel and cooking fuel prices. The better than expected earnings announcement by Tata Steel, the nation's biggest producer of the alloy, Coal India, the world's biggest producer of the fuel and Cairn India the energy explorer went down well with the local investors who commended the stocks' performance as they surged in the range of 1.50% to 3.50% by the end of session. The bourses also got filliped after index heavyweight Reliance Industries jumped by close to 3% on reports that government may allow RIL to charge market prices for natural gas sold to users other than fertilizer, power and for use in homes. Auto heavyweight Tata Motors too garnered around 2.45% ahead of its quarterly earnings announcement. Meanwhile, stocks of Subhash Chandra owned ZEE Entertainment zoomed by over two percent after the official announcement to form a 50:50 joint venture for distributing channels with Rupert Murdoch's Star India, 12 years after they parted ways. In the meantime investors also went ahead to overlook the weak inflation data which showed that food inflation surged to the highest level in four weeks at 8.55% for the week ended May 14. While the overnight surge in crude oil prices too failed to spook the investor's morale as hefty bottom fishing in fundamentally strong and undervalued stocks amid a firming trend in other Asian bourses capped the downside risks. Back home, the NSE's 50-share broadly followed index Nifty, shut shop with around a percent gain after recapturing the crucial 5,400 support level while Bombay Stock Exchange's Sensitive Index, Sensex fell just short of hitting a double century and closed above the psychological 18,000 mark. By the end of trade, the broader markets managed to raise the head above the neutral line but underperformed their larger peers by a large margin. The midcap index was up 0.14%, while the smallcap index was up by 0.46%. On the sectoral front, the Oil and Gas stocks garnered the maximum traction and settled after spurting by 2.90% after majors like ONGC and RIL accumulated 4.44%, and 2.92% respectively. The Metal pocket too remained amid the thick of things as it amassed 1.50% after majors like Tata Steel and Sterlite soared by 1.98% and 3.45% respectively. On the other hand the consumer durables pocket languished at the bottom of the table with 0.78% losses after majors like Titan Industries and Blue Star slipped by 2.60% and 1.87%, respectively.
On the global front, majority of the Asian equity indices settled in the green zone with South Korean benchmark grabbing the top gainer's position after surging well over two and half a percent point as Credit Suisse Group AG and Citigroup Inc. predicted the nation's stocks will rise on improving earnings and attractive valuations. The European equities are trading on a mixed note as France's CAC advanced 0.20%, Britain's FTSE 100 climbed 0.45% and Germany's DAX slipped 0.29%. 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 in line with the sanguine trends that prevailed in most Asian markets as investors in the region largely were influenced by the overnight Wall Street which rose on the back of surge in commodities, indicating that the global recovery is still intact. After the positive opening the frontline indices managed to capitalize on the initial momentum and soon bounced to test the psychological 5,400 and 18,000 levels, which proved as a stern resistance for the indices. The indices gradually kept losing steam through the late morning session. However, the late short covering rally in the last half an hour of the session largely in oil and gas stocks helped the benchmarks to showcase a scintillating bounce back and pierce the psychological 5,400 and 18,000 levels by the end of session. Eventually the May series F&O series expired on a dismal note after being decimated by around six and a half percent points. On expected lines, markets registered strong volumes of over Rs 2.29 lakh crore on the May series F&O settlement day. The turnover for NSE F&O segment remained on the higher side compared to Wednesday at over 2.12 lakh crore. Market breadth remained positive as there were 1496 shares on the gaining side against 1275 shares on the losing side while 125 shares remained unchanged.
Finally, the BSE Sensex surged by 197.40 points or 1.11% to settle at 18,044.64 while the S&P CNX Nifty soared 63.40 points or 1.19% to settle at 5,412.35.
The BSE Sensex touched a high and a low of 18,072.61 and 17,862.88, respectively. The BSE Mid cap and Small cap index up 0.14% and 0.46% respectively.
The top gainers on the Sensex were ONGC up 4.44%, Hero Honda up 3.97%, Sterlite Industries up 3.45%, DLF up 2.95% and Reliance Industries up 2.92%.
On the flip side, ITC down 1.08%, Infosys down 0.56%, HDFC down 0.26%, Reliance Communication down 0.25% and Bharti Airtel down 0.24% were the major losers on the index.
Food inflation surged to the highest level in four weeks at 8.55% for the week ended May 14, as prices of fruits, cereals and protein-based items escalated. During the week ended May 14, cereals became costlier by 5.03% year-on-year and prices of onions were up by 8.32%. Moreover, prices of fruit rose by 32.37%, milk by 5.53% and eggs, meat and fish by 8.26%. Meanwhile, though the Index for 'non-food articles' group has declined marginally but the government and Reserve Bank had said that in the months to come, inflationary pressure would be more from core (non-food) items on account of high global prices of commodities, particularly crude.
According to the data released by the ministry of commerce and industry on Thursday, food price index rose 8.55% on annual basis during week-ended May 14, picking up pace from an annual rise of 7.47% recorded in the previous week. Food inflation was at 21.55% in the year-ago period. Meanwhile, the food prices index jumped by 0.6% to 186.7 from 185.5 during the previous week due to higher prices of poultry chicken (5%), jowar (4%), fish-marine (3%), mutton, barley and maize (2% each) and milk (1%). However, the prices of tea (5%), arhar and ragi (2% each) and masur and urad (1% each) declined.
The index for 'non-food articles' group declined by 0.2% to 185.2 compared with 185.6 for the previous week. As a result, the broader 'primary articles' index, which has a weight of 20.12% in the overall wholesale price index (WPI) registered an increase of 0.04% to 192.4 from 191.7 seen in the previous week. The annual rate of inflation, calculated on point to point basis, for this group stood at 11.60% for the week ended May 14 as compared with 10.94% in the previous week.
The index for 'fuel and power' with a weight of 14.91% in overall WPI remained unchanged at its previous week's level of 160.01%. The annual rate of inflation for this group, calculated on point to point basis, also remained unchanged at 12.11%.
Though, the Food Inflation data has shot up on week on week basis, but the weekly food inflation has slowed from the double-digit rise for much of 2010. However, the headline inflation at 8.66 percent in April remains considerably above the central bank's comfort level, thereby pressurizing it to continue its rate hike policy.
The top gainers on the BSE sectoral space were Oil & Gas up 2.90%, Metal up 1.50%, Auto up 1.49%, PSU up 1.32%, and Realty up 1.24%.
On the flip side, Consumer Durables (CD) down 0.78%, IT down 0.19%, TECk down 0.12% and FMCG down 0.07% were the only losers in the BSE sectoral space.
With the prices of cotton showing little signs of rebounding due to excessive supply compared to the domestic demand and also because of restrictions in cotton exports, the government is now expected to lift the quantitative restrictions limit imposed on cotton exports, in order to stabilize the dropping prices. Given the pressure from farmers and from the ginning industry, the government is likely to allow cotton exporters to export an additional 1.5 million bales in the current season.
India, the second-biggest cotton exporter after the US, had in October last year permitted the duty-free export of up to 5.5 million bales, a relatively small volume, which has already been exhausted by the exporters. The limit was imposed following the sharp rise in prices of the commodity hitting the domestic textile industry.
However, since the fourth week of March, the situation has changed and prices of the natural fibre have plunged sharply due to piling of fresh stocks and huge carry over stock from the last season and around 45 lakh bales of carry over stock has been lying unsold in the warehouses.
Meanwhile, industry body ASSOCHAM too has called for lifting the ceiling on cotton exports to protect interests of farmers citing the reason that there will be a huge surplus of supply over the domestic demand in the current crop year. With opening stock of the year at 45 lakh bales, the production was estimated by the Cotton Advisory Board at 320 lakh bales, while the domestic consumption was estimated at 240 lakh bales.
The S&P CNX Nifty touched high and low of 5,422.20 and 5,356.35, respectively.
The top gainers of the Nifty were Hero Honda up 4.43%, ONGC up 4.42%, DLF up 4.00%, Sesa Goa up 2.83% and Tata Motors up 2.80%.
On the flip side, Reliance Capital down 3.08%, Powergrid down 1.08%, ITC down 1.06%, ACC down 0.79% and Infosys down 0.52% were the major losers on the index.
European markets were trading mix. France's CAC 40 lower by 0.02%, Britain's FTSE 100 up 0.45%, and Germany's DAX dropped 0.37%.
Most of the Asian markets closed higher on Thursday, barring the Chinese market that closed marginally in red. It was the bounce back in the crude and copper that led the regional indices higher as commodity and material producers inched up. South Korean index Kospi surged the most, up by 2.75 percent, highest since June 2009, as Credit Suisse Group AG and Citigroup Inc. predicted the nation's stocks will rise on improving earnings and attractive valuations. Japanese market too moved higher despite the government reporting that the country's exports fell by 12.5 percent in April. Though, the Chinese markets made a positive start but after a choppy trade closed marginally in red.
On the global front, majority of the Asian equity indices settled in the green zone with South Korean benchmark grabbing the top gainer's position after surging well over two and half a percent point as Credit Suisse Group AG and Citigroup Inc. predicted the nation's stocks will rise on improving earnings and attractive valuations. The European equities are trading on a mixed note as France's CAC advanced 0.20%, Britain's FTSE 100 climbed 0.45% and Germany's DAX slipped 0.29%. 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 in line with the sanguine trends that prevailed in most Asian markets as investors in the region largely were influenced by the overnight Wall Street which rose on the back of surge in commodities, indicating that the global recovery is still intact. After the positive opening the frontline indices managed to capitalize on the initial momentum and soon bounced to test the psychological 5,400 and 18,000 levels, which proved as a stern resistance for the indices. The indices gradually kept losing steam through the late morning session. However, the late short covering rally in the last half an hour of the session largely in oil and gas stocks helped the benchmarks to showcase a scintillating bounce back and pierce the psychological 5,400 and 18,000 levels by the end of session. Eventually the May series F&O series expired on a dismal note after being decimated by around six and a half percent points. On expected lines, markets registered strong volumes of over Rs 2.29 lakh crore on the May series F&O settlement day. The turnover for NSE F&O segment remained on the higher side compared to Wednesday at over 2.12 lakh crore. Market breadth remained positive as there were 1496 shares on the gaining side against 1275 shares on the losing side while 125 shares remained unchanged.
Finally, the BSE Sensex surged by 197.40 points or 1.11% to settle at 18,044.64 while the S&P CNX Nifty soared 63.40 points or 1.19% to settle at 5,412.35.
The BSE Sensex touched a high and a low of 18,072.61 and 17,862.88, respectively. The BSE Mid cap and Small cap index up 0.14% and 0.46% respectively.
The top gainers on the Sensex were ONGC up 4.44%, Hero Honda up 3.97%, Sterlite Industries up 3.45%, DLF up 2.95% and Reliance Industries up 2.92%.
On the flip side, ITC down 1.08%, Infosys down 0.56%, HDFC down 0.26%, Reliance Communication down 0.25% and Bharti Airtel down 0.24% were the major losers on the index.
Food inflation surged to the highest level in four weeks at 8.55% for the week ended May 14, as prices of fruits, cereals and protein-based items escalated. During the week ended May 14, cereals became costlier by 5.03% year-on-year and prices of onions were up by 8.32%. Moreover, prices of fruit rose by 32.37%, milk by 5.53% and eggs, meat and fish by 8.26%. Meanwhile, though the Index for 'non-food articles' group has declined marginally but the government and Reserve Bank had said that in the months to come, inflationary pressure would be more from core (non-food) items on account of high global prices of commodities, particularly crude.
According to the data released by the ministry of commerce and industry on Thursday, food price index rose 8.55% on annual basis during week-ended May 14, picking up pace from an annual rise of 7.47% recorded in the previous week. Food inflation was at 21.55% in the year-ago period. Meanwhile, the food prices index jumped by 0.6% to 186.7 from 185.5 during the previous week due to higher prices of poultry chicken (5%), jowar (4%), fish-marine (3%), mutton, barley and maize (2% each) and milk (1%). However, the prices of tea (5%), arhar and ragi (2% each) and masur and urad (1% each) declined.
The index for 'non-food articles' group declined by 0.2% to 185.2 compared with 185.6 for the previous week. As a result, the broader 'primary articles' index, which has a weight of 20.12% in the overall wholesale price index (WPI) registered an increase of 0.04% to 192.4 from 191.7 seen in the previous week. The annual rate of inflation, calculated on point to point basis, for this group stood at 11.60% for the week ended May 14 as compared with 10.94% in the previous week.
The index for 'fuel and power' with a weight of 14.91% in overall WPI remained unchanged at its previous week's level of 160.01%. The annual rate of inflation for this group, calculated on point to point basis, also remained unchanged at 12.11%.
Though, the Food Inflation data has shot up on week on week basis, but the weekly food inflation has slowed from the double-digit rise for much of 2010. However, the headline inflation at 8.66 percent in April remains considerably above the central bank's comfort level, thereby pressurizing it to continue its rate hike policy.
The top gainers on the BSE sectoral space were Oil & Gas up 2.90%, Metal up 1.50%, Auto up 1.49%, PSU up 1.32%, and Realty up 1.24%.
On the flip side, Consumer Durables (CD) down 0.78%, IT down 0.19%, TECk down 0.12% and FMCG down 0.07% were the only losers in the BSE sectoral space.
With the prices of cotton showing little signs of rebounding due to excessive supply compared to the domestic demand and also because of restrictions in cotton exports, the government is now expected to lift the quantitative restrictions limit imposed on cotton exports, in order to stabilize the dropping prices. Given the pressure from farmers and from the ginning industry, the government is likely to allow cotton exporters to export an additional 1.5 million bales in the current season.
India, the second-biggest cotton exporter after the US, had in October last year permitted the duty-free export of up to 5.5 million bales, a relatively small volume, which has already been exhausted by the exporters. The limit was imposed following the sharp rise in prices of the commodity hitting the domestic textile industry.
However, since the fourth week of March, the situation has changed and prices of the natural fibre have plunged sharply due to piling of fresh stocks and huge carry over stock from the last season and around 45 lakh bales of carry over stock has been lying unsold in the warehouses.
Meanwhile, industry body ASSOCHAM too has called for lifting the ceiling on cotton exports to protect interests of farmers citing the reason that there will be a huge surplus of supply over the domestic demand in the current crop year. With opening stock of the year at 45 lakh bales, the production was estimated by the Cotton Advisory Board at 320 lakh bales, while the domestic consumption was estimated at 240 lakh bales.
The S&P CNX Nifty touched high and low of 5,422.20 and 5,356.35, respectively.
The top gainers of the Nifty were Hero Honda up 4.43%, ONGC up 4.42%, DLF up 4.00%, Sesa Goa up 2.83% and Tata Motors up 2.80%.
On the flip side, Reliance Capital down 3.08%, Powergrid down 1.08%, ITC down 1.06%, ACC down 0.79% and Infosys down 0.52% were the major losers on the index.
European markets were trading mix. France's CAC 40 lower by 0.02%, Britain's FTSE 100 up 0.45%, and Germany's DAX dropped 0.37%.
Most of the Asian markets closed higher on Thursday, barring the Chinese market that closed marginally in red. It was the bounce back in the crude and copper that led the regional indices higher as commodity and material producers inched up. South Korean index Kospi surged the most, up by 2.75 percent, highest since June 2009, as Credit Suisse Group AG and Citigroup Inc. predicted the nation's stocks will rise on improving earnings and attractive valuations. Japanese market too moved higher despite the government reporting that the country's exports fell by 12.5 percent in April. Though, the Chinese markets made a positive start but after a choppy trade closed marginally in red.
MARKETS HOLD ON TO THEIR GAINS
After rebounding from the two-month low levels, Indian frontline equity indices have held on to the initial gains and are showing a sideways kind of movement in the early noon session of trade. Though the indices have come off a little bit from the high point of the day after a government data showed that weekly food inflation accelerated to 8.55% for week ended May 14 against 7.47% in the previous week. However, investors at large are showing a matured behavior and have abstained from any kneejerk reaction to the weak inflation data. The better than expected earnings announcement by Tata Steel, the nation's biggest producer of the alloy, Coal India, the world's biggest producer of the fuel and Cairn India the energy explorer have gone down well with the local investors who commended the stocks' performance as they have surged over two percent points each. The bourses also got filliped after index heavyweight Reliance Industries jumped by over two percent on reports that government may allow RIL to charge market prices for natural gas sold to users other than fertilizer, power and for use in homes. Meanwhile, stocks of Subhash Chandra owned ZEE Entertainment zoomed by over two percent after the official announcement to form a 50:50 joint venture for distributing channels with Rupert Murdoch's Star India, 12 years after they parted ways. On the sectoral front metal, oil and gas and rate sensitive Banking indices are witnessing maximum buying interests while consumer durables and technology shares are seeing some selling pressure.
Leads from markets across the globe too remained encouraging as majority of Asian equity indices exhibited sanguine trends while the European counterparts too got off to an optimistic opening, capping the downside for the local bourses. Back home, the broader markets too traded in the positive terrain as the midcap index gained by 0.38% and the smallcap index climbed 0.76%. The market breadth on the BSE was in favor of advances in the ratio of 1471:958 while 127 scrips remained unchanged.
The BSE Sensex garnered 137.42 points or 0.77% at 17,984.66. The index touched a high and a low of 18,041.39 and 17,862.88 respectively.
The BSE Mid-cap index advanced 0.38% and Small-cap index climbed 0.76%.
On the BSE sectoral front, Metal up 1.74%, Oil & Gas up 1.66%, Bankex up 1.04%, PSU up 0.78% and CG up 0.66% remained the major gainers.
While, CD down 0.72%, IT down 0.15% and Teck down 0.03% were the only laggards in the BSE sectoral space.
The top gainers on the Sensex were Tata Steel up 2.58%, Sterlite Industries up 2.50%, RIL up 2.12%, Tata Motors up 2.05% and Hindalco up 1.93%.
On the flip side M&M down 1.42%, ITC down 0.66%, Infosys down 0.64%, BHEL down 0.34% and R Com down 0.31% were the major losers on the index.
In coming few years, though India may not be able to sustain its current growth because of high inflation, poor infrastructure, bad governance and volatile oil prices, however in long run Indian economy's prospect is very good, this was stated by the Standard Chartered Bank, who is quite optimistic on Indian economy in the long run and sees India as emerging a "Winner in the current global super cycle". However, it also pointed that country's reform agenda need to be sustained for achieving high growth.
In its Super-Cycle report Standard Chartered provides a complete picture of the Indian economy and gives a realistic view on challenges faced by the country, however it remains bullish and summing up as India as" tomorrow's story and today's opportunity". Further it says that the Asia's third largest economy is expected to become the world's third largest economy by 2030 after China and United States said the Standard Chartered Bank in its report.
In report banks defines super-cycle as "a period of historically high global growth, lasting a generation or more, driven by increasing trade, high rates of investment, urbanization and technological innovation, characterized by the emergence of large, new economies." The first sequel of bank's study which got published last year indicated that there is a super cycle of growth that happens perhaps once in 50 years.
As per the report, currently the world economy is in its third cycle, which started in 2005 and will remain till 2030. The world economy witnessed its first economic super cycle during 1870 to 1913 which saw the emergence of US economy second super cycle from 1946 to 1973 saw the rise of Japan and East Asia. Now this third cycle is led by the China and India and other emerging economics and is witnessing the shifting of global power from West to East. The economists of the bank are bullish on the India growth story in the long run, though they also argue that challenges for India to achieve good growth numbers way ahead are centered around getting infrastructure (physical and education or skills) and regulatory environment in order. The biggest challenge is to provide job to India's growing young population for rapid growth and development. If nation is not able to provide employment to its young population, the demographic dividend may turn in demographic disaster. To avoid demographic disaster, India needs to transform its economy from agriculture to industrial economy. At present agriculture is the largest sector in term of providing employment. It provides employment to 52.1% of its labour force and contributes to 15-16% of GDP. To transform economy it is very important that India increase the share of manufacturing sector in GDP with increase capacity of employment generation.
India has an opportunity to regain its prominent position in the world economic order. Though the economy's success will depend on how it deals with some of its challenges over the next few decades. Also, there is a need for continued improvement in education, health care and skills as India provides the sizeable educated labour force needed for its private sector to grow, the report added. The S&P CNX Nifty amassed 37.55 points or 0.70% at 5,386.50. The index touched high and low of 5,406.55 and 5,356.35, respectively.
The top gainers on the Nifty were Sterlite up 2.56%, Tata Steel up 2.48%, Reliance up 2.17%, Tata Motors up 2.05% and Cairn up 2.04%.
On the other hand, M&M down 1.93%, BPCL down 1.28%, Ranbaxy down 1.16%, IDFC down 0.81% and Ambuja Cement down 0.80% were the major losers on the index.
On the Asian front, Shanghai Composite rose by 0.35%, Hang Seng added 0.53%, Jakarta Composite climbed 0.70%, KLSE Composite gained 0.51%, Nikkei 225 surged 1.48%, Straits Times up 0.13%, Seoul Composite zoomed 2.75% and Taiwan Weighted rose 0.70%.
The European markets have opened a positive note as the France's CAC 40 added 0.31%, Germany's DAX rose 0.46% and London's FTSE 100 gained 0.43%.
Leads from markets across the globe too remained encouraging as majority of Asian equity indices exhibited sanguine trends while the European counterparts too got off to an optimistic opening, capping the downside for the local bourses. Back home, the broader markets too traded in the positive terrain as the midcap index gained by 0.38% and the smallcap index climbed 0.76%. The market breadth on the BSE was in favor of advances in the ratio of 1471:958 while 127 scrips remained unchanged.
The BSE Sensex garnered 137.42 points or 0.77% at 17,984.66. The index touched a high and a low of 18,041.39 and 17,862.88 respectively.
The BSE Mid-cap index advanced 0.38% and Small-cap index climbed 0.76%.
On the BSE sectoral front, Metal up 1.74%, Oil & Gas up 1.66%, Bankex up 1.04%, PSU up 0.78% and CG up 0.66% remained the major gainers.
While, CD down 0.72%, IT down 0.15% and Teck down 0.03% were the only laggards in the BSE sectoral space.
The top gainers on the Sensex were Tata Steel up 2.58%, Sterlite Industries up 2.50%, RIL up 2.12%, Tata Motors up 2.05% and Hindalco up 1.93%.
On the flip side M&M down 1.42%, ITC down 0.66%, Infosys down 0.64%, BHEL down 0.34% and R Com down 0.31% were the major losers on the index.
In coming few years, though India may not be able to sustain its current growth because of high inflation, poor infrastructure, bad governance and volatile oil prices, however in long run Indian economy's prospect is very good, this was stated by the Standard Chartered Bank, who is quite optimistic on Indian economy in the long run and sees India as emerging a "Winner in the current global super cycle". However, it also pointed that country's reform agenda need to be sustained for achieving high growth.
In its Super-Cycle report Standard Chartered provides a complete picture of the Indian economy and gives a realistic view on challenges faced by the country, however it remains bullish and summing up as India as" tomorrow's story and today's opportunity". Further it says that the Asia's third largest economy is expected to become the world's third largest economy by 2030 after China and United States said the Standard Chartered Bank in its report.
In report banks defines super-cycle as "a period of historically high global growth, lasting a generation or more, driven by increasing trade, high rates of investment, urbanization and technological innovation, characterized by the emergence of large, new economies." The first sequel of bank's study which got published last year indicated that there is a super cycle of growth that happens perhaps once in 50 years.
As per the report, currently the world economy is in its third cycle, which started in 2005 and will remain till 2030. The world economy witnessed its first economic super cycle during 1870 to 1913 which saw the emergence of US economy second super cycle from 1946 to 1973 saw the rise of Japan and East Asia. Now this third cycle is led by the China and India and other emerging economics and is witnessing the shifting of global power from West to East. The economists of the bank are bullish on the India growth story in the long run, though they also argue that challenges for India to achieve good growth numbers way ahead are centered around getting infrastructure (physical and education or skills) and regulatory environment in order. The biggest challenge is to provide job to India's growing young population for rapid growth and development. If nation is not able to provide employment to its young population, the demographic dividend may turn in demographic disaster. To avoid demographic disaster, India needs to transform its economy from agriculture to industrial economy. At present agriculture is the largest sector in term of providing employment. It provides employment to 52.1% of its labour force and contributes to 15-16% of GDP. To transform economy it is very important that India increase the share of manufacturing sector in GDP with increase capacity of employment generation.
India has an opportunity to regain its prominent position in the world economic order. Though the economy's success will depend on how it deals with some of its challenges over the next few decades. Also, there is a need for continued improvement in education, health care and skills as India provides the sizeable educated labour force needed for its private sector to grow, the report added. The S&P CNX Nifty amassed 37.55 points or 0.70% at 5,386.50. The index touched high and low of 5,406.55 and 5,356.35, respectively.
The top gainers on the Nifty were Sterlite up 2.56%, Tata Steel up 2.48%, Reliance up 2.17%, Tata Motors up 2.05% and Cairn up 2.04%.
On the other hand, M&M down 1.93%, BPCL down 1.28%, Ranbaxy down 1.16%, IDFC down 0.81% and Ambuja Cement down 0.80% were the major losers on the index.
On the Asian front, Shanghai Composite rose by 0.35%, Hang Seng added 0.53%, Jakarta Composite climbed 0.70%, KLSE Composite gained 0.51%, Nikkei 225 surged 1.48%, Straits Times up 0.13%, Seoul Composite zoomed 2.75% and Taiwan Weighted rose 0.70%.
The European markets have opened a positive note as the France's CAC 40 added 0.31%, Germany's DAX rose 0.46% and London's FTSE 100 gained 0.43%.
MARKETS MOVE HIGHER
Indian equity markets have got a good start after witnessing sluggishness for last couple of days, the overnight gains in the US markets and mostly positive start of the other Asian markets has boosted the morale of the local markets. Though, today is the expiry of F&O May series but in early trade, volatility that has gripped the markets in previous few sessions has disappeared and all the market heavyweights are supporting the markets to move higher. All the rate sensitive sectors are trading strong expecting a further moderation in inflation that will take off the pressure of further rate hike by the RBI. Meanwhile the sugar stocks are trading high as the government has extended the time period for sugar mills to submit an application to the Food ministry for export of the sugar by 15 days.On the same time the bounce back in international crude prices has put the PSU oil marketing companies in the somber mood.
From the frontliners, Tata Steel has surged after reporting stellar number for FY11,the scrip is currently trading up by around 3%. On consolidated basis the Group has posted a profit after taxes, Minority Interest and Share of profit of Associates of Rs 8982.69 crore for the year ended March 31, 2011 as compared to net loss of Rs (2009.22) crore for the year ended March 31, 2010. Total Income of the group has increased by 15.60% to Rs 119734.10 crore from Rs 103578.97 crore for the year ended March 31, 2010.
The BSE Sensex opened at 17,917.11; about 70 points higher compared to its previous closing of 17,847.24, and has touched a high and low of 17,984.94 and 17,877.20 respectively.The index is currently trading at 17,922.00, up by 74.76 points or 0.42%. There were 21 stocks advancing against 9 declines on the index.
The overall market breadth has made a strong start with 1020 stocks advancing against 658 declines. The broader indices too were going neck-in-neck to the benchmarks; the BSE Mid cap and Small cap indices were up by 0.43% and 0.60% respectively.
The top gaining sectoral indices on the BSE were, Metal up by 1.42%,Oil & Gas up by 1.10%, PSU up by 0.67%, Bankex up by 0.62% and Realty was up by 0.54%. While, CD down by 0.50%, IT down by 0.21%, TECk down by 0.19% and FMCG down by 0.16% were the losers on the index.
The top gainers on the Sensex were Tata Steel up by 2.78%, Hindalco Inds up by 1.82%, RIL up by 1.66%, Sterlite Inds up by 1.51% and Bajaj Auto was up by 1.46%.
On the flip side, M&M down by 1.33%, Infosys down by 0.98%, ITC down by 0.79%, BHEL down by 0.57% and HDFC down by 0.48% were the top losers on the index.
Coal India too has surged after reporting a net profit of Rs 10867.35 crore on consolidated basis for the year ended March 31, 2011 as compared to Rs 9622.44 crore for the year ended March 31, 2010, up 13%. Its total income has increased from Rs 49515.89 crore for the year ended March 31, 2010 to Rs 55029.88 crore for the year ended March 31, 2011.
The S&P CNX Nifty opened at 5,372.75; around 24 points higher compared to its previous closing of 5,348.95, and has touched a high and low of 5,381.35 and 5,358.35 respectively. The index is currently trading at 5,368.70, up by 19.75 points or 0.37%. There were 31 stocks advancing against 19 declines on the index.
The top gainers of the Nifty were Tata Steel up by 2.83%, Cairn up by 2.62%, Hindalco up by 2.04%, Reliance Inds up by 1.67% and Sterlite Inds up by 1.60%.
ITC down by 0.95%, BPCL down by 0.94%, Infosys down by 0.86%, Bharti Airtel down by 0.85% and M&M down by 0.84%, were the major losers on the index.
All the Asian markets, barring Straits Times were trading in the green; Shanghai Composite rose by 0.75%, Hang Seng gained 0.49%, Jakarta Composite inched higher by 0.89%, KLSE Composite was up by 0.59%, Nikkei 225 surged by 1.23%, Seoul Composite gained 1.75% and Taiwan Weighted advanced by 0.65%.
On the flipside only Straits Times was trading lower by 0.05%.
From the frontliners, Tata Steel has surged after reporting stellar number for FY11,the scrip is currently trading up by around 3%. On consolidated basis the Group has posted a profit after taxes, Minority Interest and Share of profit of Associates of Rs 8982.69 crore for the year ended March 31, 2011 as compared to net loss of Rs (2009.22) crore for the year ended March 31, 2010. Total Income of the group has increased by 15.60% to Rs 119734.10 crore from Rs 103578.97 crore for the year ended March 31, 2010.
The BSE Sensex opened at 17,917.11; about 70 points higher compared to its previous closing of 17,847.24, and has touched a high and low of 17,984.94 and 17,877.20 respectively.The index is currently trading at 17,922.00, up by 74.76 points or 0.42%. There were 21 stocks advancing against 9 declines on the index.
The overall market breadth has made a strong start with 1020 stocks advancing against 658 declines. The broader indices too were going neck-in-neck to the benchmarks; the BSE Mid cap and Small cap indices were up by 0.43% and 0.60% respectively.
The top gaining sectoral indices on the BSE were, Metal up by 1.42%,Oil & Gas up by 1.10%, PSU up by 0.67%, Bankex up by 0.62% and Realty was up by 0.54%. While, CD down by 0.50%, IT down by 0.21%, TECk down by 0.19% and FMCG down by 0.16% were the losers on the index.
The top gainers on the Sensex were Tata Steel up by 2.78%, Hindalco Inds up by 1.82%, RIL up by 1.66%, Sterlite Inds up by 1.51% and Bajaj Auto was up by 1.46%.
On the flip side, M&M down by 1.33%, Infosys down by 0.98%, ITC down by 0.79%, BHEL down by 0.57% and HDFC down by 0.48% were the top losers on the index.
Coal India too has surged after reporting a net profit of Rs 10867.35 crore on consolidated basis for the year ended March 31, 2011 as compared to Rs 9622.44 crore for the year ended March 31, 2010, up 13%. Its total income has increased from Rs 49515.89 crore for the year ended March 31, 2010 to Rs 55029.88 crore for the year ended March 31, 2011.
The S&P CNX Nifty opened at 5,372.75; around 24 points higher compared to its previous closing of 5,348.95, and has touched a high and low of 5,381.35 and 5,358.35 respectively. The index is currently trading at 5,368.70, up by 19.75 points or 0.37%. There were 31 stocks advancing against 19 declines on the index.
The top gainers of the Nifty were Tata Steel up by 2.83%, Cairn up by 2.62%, Hindalco up by 2.04%, Reliance Inds up by 1.67% and Sterlite Inds up by 1.60%.
ITC down by 0.95%, BPCL down by 0.94%, Infosys down by 0.86%, Bharti Airtel down by 0.85% and M&M down by 0.84%, were the major losers on the index.
All the Asian markets, barring Straits Times were trading in the green; Shanghai Composite rose by 0.75%, Hang Seng gained 0.49%, Jakarta Composite inched higher by 0.89%, KLSE Composite was up by 0.59%, Nikkei 225 surged by 1.23%, Seoul Composite gained 1.75% and Taiwan Weighted advanced by 0.65%.
On the flipside only Straits Times was trading lower by 0.05%.
Wednesday, May 25, 2011
TREND FOR 26th MAY
CHEERS !!!
YET ANOTHER VOLATILE SESSION
Indian benchmarks witnessed yet another volatile day of trade as investors largely looked to keep profits as the expiry of current month's F&O contracts on Thursday took center stage. Investors remained concerned over the inflationary pressures hovering over the markets and drying foreign fund inflows too did not give comfort to the investors. The domestic bourses caught up with the weakness that was evident across the globe with European markets struggling to find a bottom as ongoing Euro-zone sovereign debt crisis and the overnight jump in international crude oil prices weighed on the sentiments. Marketmen squared off hefty positions from India's top listed real estate firm DLF which plummeted 4.04% being the top laggard on the Sensex as the company reported 19.19% fall in consolidated net profit to Rs 344.54 crore for quarter ended March 2011. While the IT stocks too got hammered after software services exporter Infosys Technologies disclosed that it has received a subpoena from a grand jury in a US district court that requires the company to provide certain documents and records related to B1 business visas. The NSE's 50-share broadly followed index, Nifty settled below the psychological 5,350 support level after taking around a percent point cut while the Bombay Stock Exchange's Sensitive Index Sensex slipped by over hundred and fifty points and ended the day just below the psychological 17,850 level. The broader markets too succumbed to the intense selling pressure exerted on the heavyweights but did not drift as much as their larger peers. The midcap index declined by 0.57% while the smallcap index dropped 0.65% points. On the BSE sectoral space, the Capital Goods counter languished at the bottom of the table with losses of 1.53% on the back of the 2.24% and 1.47% plunge in heavyweights like L&T and BHEL respectively. While the profit booking was also witnessed in the IT index which sank by 1.52% as stocks like TCS and Infosys got pounded by 2.09% and 1.76% respectively. Index heavyweights like RIL, SBI and ONGC too failed to make their presence felt as they sank in the range of 1% to 2%. On the other hand, only respite came from the Consumer Durables counter which managed to keep its head above the water and settled with gains of 1.23% as bellwethers like VIP Industries and Titan Industries zoomed by 4.39% and 1.55% respectively.
On the global front, majority of Asian equity indices settled in the negative terrain with the South Korean benchmark being the top laggard in the space after plunging around one and a quarter percent points. The European counterparts too got off to a weak start but have managed to narrow down their losses as France's CAC 40 eased 0.19%, Germany's DAX edged down 0.19% and London's FTSE 100 was marginally lower 0.06%. On the other hand, the screen trading for US index futures too indicated that the Dow could open on a flat note.
Earlier on Dalal Street, the benchmark got off to a pessimistic opening in line with the weak trends that prevailed in most Asian markets as investors in the region were largely influenced by the overnight Wall Street which continued its southward journey on the persisting concerns over European sovereign financial problems. After the negative opening the frontline indices failed to show any kind of enthusiasm and continued declining as ruthless across the board position squaring remained the flavor of the session. The benchmarks eventually snapped the day with huge cuts of around a percentage points, just below the crucial 5,350 and 17,850 support levels. On the expected lines, the markets registered large volumes compared to that on Tuesday as it was the penultimate day of May series F&O settlement. The market breadth on the BSE was negative as only 1080 shares were on the gaining side against 1649 shares on the losing side while 149 shares remained unchanged.
Finally, the BSE Sensex slipped 164.73 points or 0.91% to settle at 17,847.24 while the S&P CNX Nifty fell 45.90 points or 0.85% to settle at 5,348.95.
The BSE Sensex touched a high and a low of 17,976.36 and 17,786.13, respectively. The BSE Mid cap and Small cap index lost 0.57% and 0.65% respectively.
The top gainers on the Sensex were Jindal Steel up 1.13%, Tata Motors up 1.00%, ITC up 0.91%, NTPC up 0.33% and Maruti Suzuki up 0.12%.
On the flip side, DLF down 4.04%, Reliance Communication down 2.48%, L&T down 2.24%, TCS down 2.09% and SBI down 2.06% were the major losers on the index.
The Indian Pharmaceutical industry has been witnessing phenomenal growth in recent years, driven by rising consumption levels in the country and strong demand from export markets. The pharmaceutical industry in India is estimated to be worth about $10 billion, growing at an annual rate of 9 percent. There are around 10,000 pharmaceutical manufacturers in India, producing bulk drugs and formulations, of which some 7,000 are SMEs, contributing 35 percent of the total domestic turnover of Rs 45,000 crore.
In order to enhance the performance in the domestic and export markets, the small and medium enterprises (SMEs) in the pharma sector are looking for government support on technology upgrade in manufacturing, brand promotion and marketing. The marketing and regulatory constraints are putting pressure on SMEs growth. To overcome this, the SMEs need financial support from the government. The opportunity is mainly in contract manufacturing, for both MNCs operating in India and Indian companies, which are looking to outsource manufacturing activities for the domestic market and focus on exports to regulated markets like the US and Europe. For which the SMEs first have to upgrade their capabilities to comply with manufacturing standards like Good Manufacturing Practices (GMPs) set by the Indian government and the World Health Organization (WHO).
Upgrading facilities according to the WHO-GMP and Indian GMP standards needs liberal funding from the government and some financial incentives, but without so many restrictions. The government has implemented financial assistance programmes like the Credit Linked Capital Subsidy Scheme (CLCSS) for technology up gradation of small-scale industries to enable them to comply with GMP standards with the revised Schedule M norms under the Drugs and Cosmetics Act. Besides, the government also announced a Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) that provides a 5 percent interest subsidy for SMEs to upgrade their facilities to WHO-GMP standards.
The SMEs also face the challenge of eligibility barriers, including fixed turnover limits and ORG rankings set by institutional buyers in their bidding process for medicine procurement. Small enterprises, which mainly rely on government and institutional supplies, could perform well if these restrictions are removed. Further, the government could also provide SMEs with soft loans for brand promotion.
The MSMEs constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. The contribution of SMEs to pharmaceutical units, output, investment, and employment is considerably higher than many other sectors. In the year 2011-12, the Indian domestic pharma market is expected to grow at a compounded annual growth rate (CAGR) of nearly 16%. Export market is also expected to grow much faster than the domestic market.
The only gainers on the BSE sectoral space were Consumer Durables (CD) up 1.23% and FMCG up 0.01%.
On the flip side, Capital Goods (CG) down 1.53%, IT down 1.52%, Realty down 1.31%, TECk down 1.20% and Oil & Gas down 0.98% were the major losers in the BSE sectoral space.
The S&P CNX Nifty touched high and low of 5,389.10 and 5,328.70, respectively.
The top gainers of the Nifty were Kotak Bank up 2.49%, Sun Pharma up 1.90%, Ambuja Cement up 1.67%, Jindal Steel up 1.29% and Tata Motors up 1.18%.
On the flip side, DLF down 4.08%, BPCL down 3.04%, L&T down 2.47%, IDFC down 2.46% and SBI down 2.40% were the major losers on the index.
European markets were trading mix. France's CAC 40 lower by 0.16%, Britain's FTSE 100 down 0.10%, and Germany's DAX dropped 0.20%.
The Asian markets made a mixed closing on Wednesday, while Chinese and Japanese market traded lower tracking weakness in other global markets Hang Seng and Straits Times closed in green. In a review of the Chinese banking sector released late on Tuesday, S&P said the People's Bank of China's move to contain credit risks would undermine banks' profitability for the rest of 2011 and the financials emerged as the top drag and investors pulled out of risky assets. Commodities too declined, boosting demand for the safest assets. Japan's Nikkei share average fell to its lowest close in two months. However, Hang Seng market, after initial drubbing managed a close in green as emerging value in heavyweight banking shares lifted the benchmarks out of technically oversold levels.
On the global front, majority of Asian equity indices settled in the negative terrain with the South Korean benchmark being the top laggard in the space after plunging around one and a quarter percent points. The European counterparts too got off to a weak start but have managed to narrow down their losses as France's CAC 40 eased 0.19%, Germany's DAX edged down 0.19% and London's FTSE 100 was marginally lower 0.06%. On the other hand, the screen trading for US index futures too indicated that the Dow could open on a flat note.
Earlier on Dalal Street, the benchmark got off to a pessimistic opening in line with the weak trends that prevailed in most Asian markets as investors in the region were largely influenced by the overnight Wall Street which continued its southward journey on the persisting concerns over European sovereign financial problems. After the negative opening the frontline indices failed to show any kind of enthusiasm and continued declining as ruthless across the board position squaring remained the flavor of the session. The benchmarks eventually snapped the day with huge cuts of around a percentage points, just below the crucial 5,350 and 17,850 support levels. On the expected lines, the markets registered large volumes compared to that on Tuesday as it was the penultimate day of May series F&O settlement. The market breadth on the BSE was negative as only 1080 shares were on the gaining side against 1649 shares on the losing side while 149 shares remained unchanged.
Finally, the BSE Sensex slipped 164.73 points or 0.91% to settle at 17,847.24 while the S&P CNX Nifty fell 45.90 points or 0.85% to settle at 5,348.95.
The BSE Sensex touched a high and a low of 17,976.36 and 17,786.13, respectively. The BSE Mid cap and Small cap index lost 0.57% and 0.65% respectively.
The top gainers on the Sensex were Jindal Steel up 1.13%, Tata Motors up 1.00%, ITC up 0.91%, NTPC up 0.33% and Maruti Suzuki up 0.12%.
On the flip side, DLF down 4.04%, Reliance Communication down 2.48%, L&T down 2.24%, TCS down 2.09% and SBI down 2.06% were the major losers on the index.
The Indian Pharmaceutical industry has been witnessing phenomenal growth in recent years, driven by rising consumption levels in the country and strong demand from export markets. The pharmaceutical industry in India is estimated to be worth about $10 billion, growing at an annual rate of 9 percent. There are around 10,000 pharmaceutical manufacturers in India, producing bulk drugs and formulations, of which some 7,000 are SMEs, contributing 35 percent of the total domestic turnover of Rs 45,000 crore.
In order to enhance the performance in the domestic and export markets, the small and medium enterprises (SMEs) in the pharma sector are looking for government support on technology upgrade in manufacturing, brand promotion and marketing. The marketing and regulatory constraints are putting pressure on SMEs growth. To overcome this, the SMEs need financial support from the government. The opportunity is mainly in contract manufacturing, for both MNCs operating in India and Indian companies, which are looking to outsource manufacturing activities for the domestic market and focus on exports to regulated markets like the US and Europe. For which the SMEs first have to upgrade their capabilities to comply with manufacturing standards like Good Manufacturing Practices (GMPs) set by the Indian government and the World Health Organization (WHO).
Upgrading facilities according to the WHO-GMP and Indian GMP standards needs liberal funding from the government and some financial incentives, but without so many restrictions. The government has implemented financial assistance programmes like the Credit Linked Capital Subsidy Scheme (CLCSS) for technology up gradation of small-scale industries to enable them to comply with GMP standards with the revised Schedule M norms under the Drugs and Cosmetics Act. Besides, the government also announced a Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) that provides a 5 percent interest subsidy for SMEs to upgrade their facilities to WHO-GMP standards.
The SMEs also face the challenge of eligibility barriers, including fixed turnover limits and ORG rankings set by institutional buyers in their bidding process for medicine procurement. Small enterprises, which mainly rely on government and institutional supplies, could perform well if these restrictions are removed. Further, the government could also provide SMEs with soft loans for brand promotion.
The MSMEs constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. The contribution of SMEs to pharmaceutical units, output, investment, and employment is considerably higher than many other sectors. In the year 2011-12, the Indian domestic pharma market is expected to grow at a compounded annual growth rate (CAGR) of nearly 16%. Export market is also expected to grow much faster than the domestic market.
The only gainers on the BSE sectoral space were Consumer Durables (CD) up 1.23% and FMCG up 0.01%.
On the flip side, Capital Goods (CG) down 1.53%, IT down 1.52%, Realty down 1.31%, TECk down 1.20% and Oil & Gas down 0.98% were the major losers in the BSE sectoral space.
The S&P CNX Nifty touched high and low of 5,389.10 and 5,328.70, respectively.
The top gainers of the Nifty were Kotak Bank up 2.49%, Sun Pharma up 1.90%, Ambuja Cement up 1.67%, Jindal Steel up 1.29% and Tata Motors up 1.18%.
On the flip side, DLF down 4.08%, BPCL down 3.04%, L&T down 2.47%, IDFC down 2.46% and SBI down 2.40% were the major losers on the index.
European markets were trading mix. France's CAC 40 lower by 0.16%, Britain's FTSE 100 down 0.10%, and Germany's DAX dropped 0.20%.
The Asian markets made a mixed closing on Wednesday, while Chinese and Japanese market traded lower tracking weakness in other global markets Hang Seng and Straits Times closed in green. In a review of the Chinese banking sector released late on Tuesday, S&P said the People's Bank of China's move to contain credit risks would undermine banks' profitability for the rest of 2011 and the financials emerged as the top drag and investors pulled out of risky assets. Commodities too declined, boosting demand for the safest assets. Japan's Nikkei share average fell to its lowest close in two months. However, Hang Seng market, after initial drubbing managed a close in green as emerging value in heavyweight banking shares lifted the benchmarks out of technically oversold levels.
MARKETS CONTINUE TO LOOSE GROUND
Indian benchmarks have drifted deeper into the red terrain and extended their losses to close to a percent point in the Wednesday afternoon session of trade as selling gathered greater force in the hour gone by amid broad based position squaring across the board. The frontline indices drifted way below their psychological 5,400 and 18,000 levels as investors are increasingly trimming down positions from heavyweight names like DLF from the high beta realty pocket which shaved off close to four percent points after reporting worse than expected fourth quarterly earnings numbers. While, the information technology majors like TCS, Infosys and Wipro too are trading with large cuts in the range of 1.50% to 2.50%. Leads from markets across the globe too remained discouraging as majority of Asian equity indices exhibited somber trend while the European counterparts too got off to a pessimistic opening, giving no upside triggers to the local bourses. The overnight bounce back in international crude oil prices too does not seem to have gone down well with the local investors. The only respite came from Consumer Durables and Healthcare pockets which traded with 0.61% and 0.11% gains respectively. While some individual names like Jindal Steel, Tata Motors and HDFC Bank too have managed to keep their heads above the water.
Moreover, the broader markets too succumbed to the intense selling pressure exerted on the heavyweights and the midcap index slipped by 0.57% and the smallcap index dropped 0.42% points. The market breadth on the BSE was in favor of declines in the ratio of 972:1470 while 119 scrips remained unchanged.
The BSE Sensex declined 150.18 points or 0.83% at 17,861.79. The index touched a high and a low of 17,976.36 and 17,840.45 respectively.
The BSE Mid-cap index shed 0.57% and Small-cap index receded 0.42%.
On the BSE sectoral front, Consumer Durables up 0.61% and Healthcare up 0.11% remained the only gainers.
While, Realty down 1.80%, IT down 1.68%, Capital Goods down 1.48%, Teck down 1.43% and Power down 0.74% were the major laggards in the BSE sectoral space.
The top gainers on the Sensex were Jindal Steel up 1.12%, Tata Motors up 0.58% and HDFC Bank up 0.08%.
On the flip side DLF down 3.91%, TCS down 2.15%, L&T down 2.12%, RCom down 2.06% and Bajaj Auto down 1.67% were the major losers on the index.
Meanwhile, the Indian Pharmaceutical industry has been witnessing phenomenal growth in recent years, driven by rising consumption levels in the country and strong demand from export markets. The pharmaceutical industry in India is estimated to be worth about $10 billion, growing at an annual rate of 9 percent. There are around 10,000 pharmaceutical manufacturers in India, producing bulk drugs and formulations, of which some 7,000 are SMEs, contributing 35 percent of the total domestic turnover of Rs 45,000 crore.
In order to enhance the performance in the domestic and export markets, the small and medium enterprises (SMEs) in the pharma sector are looking for government support on technology upgrade in manufacturing, brand promotion and marketing. The marketing and regulatory constraints are putting pressure on SMEs growth. To overcome this, the SMEs need financial support from the government. The opportunity is mainly in contract manufacturing, for both MNCs operating in India and Indian companies, which are looking to outsource manufacturing activities for the domestic market and focus on exports to regulated markets like the US and Europe. For which the SMEs first have to upgrade their capabilities to comply with manufacturing standards like Good Manufacturing Practices (GMPs) set by the Indian government and the World Health Organization (WHO).
Upgrading facilities according to the WHO-GMP and Indian GMP standards needs liberal funding from the government and some financial incentives, but without so many restrictions. The government has implemented financial assistance programmes like the Credit Linked Capital Subsidy Scheme (CLCSS) for technology up gradation of small-scale industries to enable them to comply with GMP standards with the revised Schedule M norms under the Drugs and Cosmetics Act. Besides, the government also announced a Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) that provides a 5 percent interest subsidy for SMEs to upgrade their facilities to WHO-GMP standards.
The SMEs also face the challenge of eligibility barriers, including fixed turnover limits and ORG rankings set by institutional buyers in their bidding process for medicine procurement. Small enterprises, which mainly rely on government and institutional supplies, could perform well if these restrictions are removed. Further, the government could also provide SMEs with soft loans for brand promotion.
The MSMEs constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. The contribution of SMEs to pharmaceutical units, output, investment, and employment is considerably higher than many other sectors. In the year 2011-12, the Indian domestic pharma market is expected to grow at a compounded annual growth rate (CAGR) of nearly 16%. Export market is also expected to grow much faster than the domestic market. The S&P CNX Nifty wilted 42.20 points or 0.78% at 5,352.65. The index touched high and low of 5,389.10 and 5,343.95, respectively.
The top gainers on the Nifty were Sun Pharma up 1.82%, Cairn up 1.45%, Kotak Bank up 1.29%, Jindal Steel up 1.18% and Tata Motors up 0.91%.
On the other hand, DLF down 3.99%, Tata Power down 2.33%, BPCL down 2.27%, R Capital down 2.20% and L&T down 2.19% were the major losers on the index.
On the Asian front, Shanghai Composite plunged by 0.99%, Hang Seng declined 0.27%, Jakarta Composite fell 0.35%, Nikkei 225 shed 0.57%, Straits Times dropped 0.27%, Seoul Composite plummeted 1.26% and Taiwan Weighted inched down 0.34%.
On the flipside only KLSE Composite added 0.17%. The European markets have opened a negative note as the France's CAC 40 slipped 0.60%, Germany's DAX decreased 0.80% and London's FTSE 100 declined 0.52%.
Moreover, the broader markets too succumbed to the intense selling pressure exerted on the heavyweights and the midcap index slipped by 0.57% and the smallcap index dropped 0.42% points. The market breadth on the BSE was in favor of declines in the ratio of 972:1470 while 119 scrips remained unchanged.
The BSE Sensex declined 150.18 points or 0.83% at 17,861.79. The index touched a high and a low of 17,976.36 and 17,840.45 respectively.
The BSE Mid-cap index shed 0.57% and Small-cap index receded 0.42%.
On the BSE sectoral front, Consumer Durables up 0.61% and Healthcare up 0.11% remained the only gainers.
While, Realty down 1.80%, IT down 1.68%, Capital Goods down 1.48%, Teck down 1.43% and Power down 0.74% were the major laggards in the BSE sectoral space.
The top gainers on the Sensex were Jindal Steel up 1.12%, Tata Motors up 0.58% and HDFC Bank up 0.08%.
On the flip side DLF down 3.91%, TCS down 2.15%, L&T down 2.12%, RCom down 2.06% and Bajaj Auto down 1.67% were the major losers on the index.
Meanwhile, the Indian Pharmaceutical industry has been witnessing phenomenal growth in recent years, driven by rising consumption levels in the country and strong demand from export markets. The pharmaceutical industry in India is estimated to be worth about $10 billion, growing at an annual rate of 9 percent. There are around 10,000 pharmaceutical manufacturers in India, producing bulk drugs and formulations, of which some 7,000 are SMEs, contributing 35 percent of the total domestic turnover of Rs 45,000 crore.
In order to enhance the performance in the domestic and export markets, the small and medium enterprises (SMEs) in the pharma sector are looking for government support on technology upgrade in manufacturing, brand promotion and marketing. The marketing and regulatory constraints are putting pressure on SMEs growth. To overcome this, the SMEs need financial support from the government. The opportunity is mainly in contract manufacturing, for both MNCs operating in India and Indian companies, which are looking to outsource manufacturing activities for the domestic market and focus on exports to regulated markets like the US and Europe. For which the SMEs first have to upgrade their capabilities to comply with manufacturing standards like Good Manufacturing Practices (GMPs) set by the Indian government and the World Health Organization (WHO).
Upgrading facilities according to the WHO-GMP and Indian GMP standards needs liberal funding from the government and some financial incentives, but without so many restrictions. The government has implemented financial assistance programmes like the Credit Linked Capital Subsidy Scheme (CLCSS) for technology up gradation of small-scale industries to enable them to comply with GMP standards with the revised Schedule M norms under the Drugs and Cosmetics Act. Besides, the government also announced a Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) that provides a 5 percent interest subsidy for SMEs to upgrade their facilities to WHO-GMP standards.
The SMEs also face the challenge of eligibility barriers, including fixed turnover limits and ORG rankings set by institutional buyers in their bidding process for medicine procurement. Small enterprises, which mainly rely on government and institutional supplies, could perform well if these restrictions are removed. Further, the government could also provide SMEs with soft loans for brand promotion.
The MSMEs constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. The contribution of SMEs to pharmaceutical units, output, investment, and employment is considerably higher than many other sectors. In the year 2011-12, the Indian domestic pharma market is expected to grow at a compounded annual growth rate (CAGR) of nearly 16%. Export market is also expected to grow much faster than the domestic market. The S&P CNX Nifty wilted 42.20 points or 0.78% at 5,352.65. The index touched high and low of 5,389.10 and 5,343.95, respectively.
The top gainers on the Nifty were Sun Pharma up 1.82%, Cairn up 1.45%, Kotak Bank up 1.29%, Jindal Steel up 1.18% and Tata Motors up 0.91%.
On the other hand, DLF down 3.99%, Tata Power down 2.33%, BPCL down 2.27%, R Capital down 2.20% and L&T down 2.19% were the major losers on the index.
On the Asian front, Shanghai Composite plunged by 0.99%, Hang Seng declined 0.27%, Jakarta Composite fell 0.35%, Nikkei 225 shed 0.57%, Straits Times dropped 0.27%, Seoul Composite plummeted 1.26% and Taiwan Weighted inched down 0.34%.
On the flipside only KLSE Composite added 0.17%. The European markets have opened a negative note as the France's CAC 40 slipped 0.60%, Germany's DAX decreased 0.80% and London's FTSE 100 declined 0.52%.
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