After being down and out for most part of the day's
trade, Indian benchmark equity indices fiercely fought back in dying
moments of trade to claw back into the green terrain and snap the last
trading session of 2012's first week on a positive note. The frontline
indices showed wild swings in late trade amid rumors that both Mukesh
Ambani and Anil Ambani will jointly be addressing a press conference to
make some significant announcements, however the sharp spike up evident
in last leg of trade petered out and led to third straight session of
consolidation for the markets. Investors also lacked conviction to open
fresh positions amid a lot of uncertainties surrounding the European
region. The psychological 4,780 (Nifty) and 16,900 (Sensex) levels once
again proved as though nuts to crack for the frontline indices despite
repeated attempts to claw beyond those levels. Back home, investors
overlooked reports that RBI, in its bid to help Indian corporate to
access higher quantum of overseas funds, reduced the minimum maturity
period for ECB up to $20 million to three years as against the previous
five years while it also raised the annual limit of FCCBs for companies
to $750 million as against $500 million in a fiscal year under the
automatic route that does not require prior regulator's approval. Leads
from the global front remained inconclusive as renewed tensions over
Spain and Italy on one hand counterbalanced the strong batch of
macroeconomic reports from the US on the other. Moreover, most Asian
markets exhibited somber trends barring the Chinese benchmark which
rebounded to close with over half a percent gains on reports of major
government institutions buying banking stocks to support the weak stock
market. European stocks edged higher tentatively on hopes that US jobs
report scheduled to be released later in the day will indicate better
outlook for the world's biggest economy.
Earlier on Dalal Street, the benchmark got off to a negative opening following the Asian peers as renewed tensions over Spain and Italy triggered sharp sell-off across the region, overshadowing the strong batch of macroeconomic reports from the US. The frontline indices gyrated in a tight range till mid morning trades post which the key gauges plunged deeper into the red terrain to hit the lowest point in session. Thereafter, the bourses continued to show somber trends but the key indices got an unexpected shot in the arm in last leg of trade which underpinned them to the highest point in the day. Though, the optimism fizzled out sooner than later, yet the markets managed to end the session in positive terrain with marginal gains. Eventually, the NSE's 50-share broadly followed index - Nifty settled with trivial gains of four points above the psychological 4,750 levels while Bombay Stock Exchange's Sensitive Index -Sensex- added paltry ten points and closed below the psychological 15,900 mark. Moreover, the broader markets failed to show resilience in the session and settled on a quiet note, performing in tandem with the larger peers. On the BSE sectoral space, Oil & Gas index remained the top gainer in the space with over a percent gains followed by the defensive-FMCG and rate sensitive Bankex indices which ended with around half a percent gains. On the other hand, the Capital Goods index plunged by a percent followed by the high beta Realty and TECk counters which too settled with close to a percent losses. The markets consolidated on stronger volumes of over Rs 1.22 lakh core while the turnover for NSE F&O segment also remained on the higher side as compared to that on Thursday at over 1.08 lakh crore. The market breadth remained positive as there were 1499 shares on the gaining side against 1200 shares on the losing side while 135 shares remained unchanged.
Finally, the BSE Sensex gained 10.65 points or 0.07% to settle at 15,867.73, while the S&P CNX Nifty rose by 4.15 points or 0.09% to close at 4,754.10.
The BSE Sensex touched a high and a low of 16,001.31 and 15,664.91 respectively. The BSE Mid cap index was down by 0.09% and Small cap index up by 0.02%.
The major gainers on the Sensex were Reliance Industries up 2.52%, HDFC Bank up 2.25%, Hindalco Industries up 2.02%, Maruti Suzuki up 1.76% and ITC up 1.23%. While, Hero MotoCorp down 5.12%, JP Associates down 4.58%, Bharti Airtel down 4.11%, Jindal Steel down 3.00% and DLF down 2.65%, were the major losers on the index.
On the BSE sectoral space, Oil & Gas up 1.06%, FMCG up 0.87%, Bankex up 0.49% and Health Care (HC) up 0.06% were the top gainers while Capita l Goods (CG) down 1.00%, Realty down 0.87%, TECk down 0.78%, Power down 0.69% and Consumer Durables (CD) down 0.60% were top losers on the BSE sectoral space.
Meanwhile, in order to recapitalize public sector banks, the Ministry of Finance is aiming at infusing capital worth Rs 17,000 crore into PSU banks in the ongoing fiscal year ending March 2012. The move will help state owned banks in meeting their capital requirements and enhancing lending operations. In the previous fiscal year 2010-11, the government had infused capital to the tune of Rs 20,157 crore into public sector banks.
Over and above the Budget provision of Rs 6,000 crore, the ministry is likely to seek additional Rs 12,000 crore through supplementary demands in Parliament for capital infusion in PSU banks during the current fiscal. The capital infusion initiative of the government, which had already committed to providing adequate capital to public sector banks so as to maintain their Tier-I capital at 8%, is likely to prove beneficial for nation's major lenders including State Bank of India, Bank of Baroda, Union Bank of India, IDBI Bank, and Syndicate Bank.
The top gainers on the Nifty were RCOM up 5.77%, Reliance Infra up 4.50%, BPCL up 3.90%, Reliance Power up 3.81% and Reliance Industries up 2.80%.
On the flip side, Hero MotoCorp down 5.48%, JP Associates down 4.84%, Bharti Airtel down 4.05%, Jindal Steel down 3.36% and DLF down 3.03% were the top losers on the index.
The European markets were trading in green. France's CAC 40 up 0.55%, Britain's FTSE 100 up by 0.29% and Germany's DAX up by 0.42%.
Sentiment remained bearish in the Asian region as most of the counters snapped the last day of the week in the negative terrain as concerns over the eurozone debt crisis overshadowed another batch of upbeat US jobs figures. In Spain the new economy minister warned that banks may face up to 50 billion euros ($65 billion) in bad loan provisions. Meanwhile, Japanese Nikkei declined over a percentage point as investors grew cautious ahead of a long weekend against the backdrop of Europe debt crisis and a still-high yen. Hang Seng and Seoul Composite too lost over a percent in the trade. However, Chinese Shanghai advanced over half a percent as energy producer PetroChina jumped after Beijing raised a threshold for a so-called windfall tax, effectively reducing oil producers' taxes. Banks and resource stocks also climbed after hefty recent losses, although many property developers declined on Chinese bourses.
Earlier on Dalal Street, the benchmark got off to a negative opening following the Asian peers as renewed tensions over Spain and Italy triggered sharp sell-off across the region, overshadowing the strong batch of macroeconomic reports from the US. The frontline indices gyrated in a tight range till mid morning trades post which the key gauges plunged deeper into the red terrain to hit the lowest point in session. Thereafter, the bourses continued to show somber trends but the key indices got an unexpected shot in the arm in last leg of trade which underpinned them to the highest point in the day. Though, the optimism fizzled out sooner than later, yet the markets managed to end the session in positive terrain with marginal gains. Eventually, the NSE's 50-share broadly followed index - Nifty settled with trivial gains of four points above the psychological 4,750 levels while Bombay Stock Exchange's Sensitive Index -Sensex- added paltry ten points and closed below the psychological 15,900 mark. Moreover, the broader markets failed to show resilience in the session and settled on a quiet note, performing in tandem with the larger peers. On the BSE sectoral space, Oil & Gas index remained the top gainer in the space with over a percent gains followed by the defensive-FMCG and rate sensitive Bankex indices which ended with around half a percent gains. On the other hand, the Capital Goods index plunged by a percent followed by the high beta Realty and TECk counters which too settled with close to a percent losses. The markets consolidated on stronger volumes of over Rs 1.22 lakh core while the turnover for NSE F&O segment also remained on the higher side as compared to that on Thursday at over 1.08 lakh crore. The market breadth remained positive as there were 1499 shares on the gaining side against 1200 shares on the losing side while 135 shares remained unchanged.
Finally, the BSE Sensex gained 10.65 points or 0.07% to settle at 15,867.73, while the S&P CNX Nifty rose by 4.15 points or 0.09% to close at 4,754.10.
The BSE Sensex touched a high and a low of 16,001.31 and 15,664.91 respectively. The BSE Mid cap index was down by 0.09% and Small cap index up by 0.02%.
The major gainers on the Sensex were Reliance Industries up 2.52%, HDFC Bank up 2.25%, Hindalco Industries up 2.02%, Maruti Suzuki up 1.76% and ITC up 1.23%. While, Hero MotoCorp down 5.12%, JP Associates down 4.58%, Bharti Airtel down 4.11%, Jindal Steel down 3.00% and DLF down 2.65%, were the major losers on the index.
On the BSE sectoral space, Oil & Gas up 1.06%, FMCG up 0.87%, Bankex up 0.49% and Health Care (HC) up 0.06% were the top gainers while Capita l Goods (CG) down 1.00%, Realty down 0.87%, TECk down 0.78%, Power down 0.69% and Consumer Durables (CD) down 0.60% were top losers on the BSE sectoral space.
Meanwhile, in order to recapitalize public sector banks, the Ministry of Finance is aiming at infusing capital worth Rs 17,000 crore into PSU banks in the ongoing fiscal year ending March 2012. The move will help state owned banks in meeting their capital requirements and enhancing lending operations. In the previous fiscal year 2010-11, the government had infused capital to the tune of Rs 20,157 crore into public sector banks.
Over and above the Budget provision of Rs 6,000 crore, the ministry is likely to seek additional Rs 12,000 crore through supplementary demands in Parliament for capital infusion in PSU banks during the current fiscal. The capital infusion initiative of the government, which had already committed to providing adequate capital to public sector banks so as to maintain their Tier-I capital at 8%, is likely to prove beneficial for nation's major lenders including State Bank of India, Bank of Baroda, Union Bank of India, IDBI Bank, and Syndicate Bank.
The
public sector banks are required to maintain high level of financial
and functional efficiency as the finance ministry has made it clear that
capital support from the government in future would be linked to their
efficiency. Meanwhile, Financial Services Secretary DK Mittal had
earlier opined that capital of about Rs 3.5 lakh crore will be infused
into the state-run banks by 2021. A committee headed by Finance
Secretary RS Gujral is busy carving out a strategy for capitalization of
public sector banks over a period of next 10 years.
The S&P CNX Nifty touched a high and low of 4,794.90 and 4,686.85, respectively. The top gainers on the Nifty were RCOM up 5.77%, Reliance Infra up 4.50%, BPCL up 3.90%, Reliance Power up 3.81% and Reliance Industries up 2.80%.
On the flip side, Hero MotoCorp down 5.48%, JP Associates down 4.84%, Bharti Airtel down 4.05%, Jindal Steel down 3.36% and DLF down 3.03% were the top losers on the index.
The European markets were trading in green. France's CAC 40 up 0.55%, Britain's FTSE 100 up by 0.29% and Germany's DAX up by 0.42%.
Sentiment remained bearish in the Asian region as most of the counters snapped the last day of the week in the negative terrain as concerns over the eurozone debt crisis overshadowed another batch of upbeat US jobs figures. In Spain the new economy minister warned that banks may face up to 50 billion euros ($65 billion) in bad loan provisions. Meanwhile, Japanese Nikkei declined over a percentage point as investors grew cautious ahead of a long weekend against the backdrop of Europe debt crisis and a still-high yen. Hang Seng and Seoul Composite too lost over a percent in the trade. However, Chinese Shanghai advanced over half a percent as energy producer PetroChina jumped after Beijing raised a threshold for a so-called windfall tax, effectively reducing oil producers' taxes. Banks and resource stocks also climbed after hefty recent losses, although many property developers declined on Chinese bourses.
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