Volatility remained in vogue on the first trading
session of the Year 2012, markets after a positive start could not hold
the gains and plunged to their intraday low in the mid of the trade.
Though, there was short covering in the later trade that helped markets
to recover and snap the session on a positive note. The global cues were
not very supportive as the US markets snapped the year on a dismal note
and some of the trading Asian indices made a mixed start giving
cautious cues for the domestic markets. However, the flat-to-positive
start gave investors some confidence that the markets won't slip further
on the first trading day of the year but after remaining range bound
the trade suddenly turned choppy and by mid of the day benchmark indices
lost their way, declining below their crucial psychological levels of
4600 (Nifty) and 15400 (Sensex). Positive start of the European markets
boosted the confidence for recovery.
Earlier the markets made a flat start of the year 2012, a consolation after severe beating till the last of the 2011. Though, traders were remaining on sideways lacking any major cues, the trade continued rangebound till noon. There was some spurt in auto stocks after the announcement of their monthly sales number. Most of the passenger car makers ended 2011 with sales growth. Tata Motors sold 29,417 passenger vehicles in December, up 27% from a year earlier. Mahindra & Mahindra's sales growth in passenger vehicles segment was up 24% to 19,341 units, while, Maruti Suzuki's number despite decline were not as bad as were expected by the street. On the same time the day was not good for the two wheelers maker and Bajaj Auto, TVS Motors and Hero Moto Corp, all lost between 3-8 percent for the day on account of poor auto sales numbers for the month of December. Oil & gas stocks were the lead gainers of the day, mainly supported by the bounce back in market heavyweight Reliance Industries, consumer durables too gained while, there was spurt in IT and technology stocks on the back of depreciating rupee. Banking stocks too gained a bit as Reserve Bank Governor D Subbarao indicated that the central bank could reverse the tight monetary stance adopted by it that had led to the declining growth. FMCG sector remained in the somber mood since beginning and turned out to be the biggest laggard as an Assocham study said that weak rupee and rising input costs may force FMCG companies to increase prices of their products in 2012, which in turn is likely to hit sales during the year by about 10-15 per cent. There was some cautiousness in the market as Finance Minister Pranab Mukherjee said that the budget for 2012-13 ending March will be presented after elections scheduled in five states. Also the concern from the European markets continued to weigh on. Finally the markets managed a close of marginal green.
The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1430:1212 while 116 scrips remained unchanged.
The BSE Sensex gained 60.87 points or 0.39% and settled at 15,515.79. The index touched a high and a low of 15,542.85 and 15,358.02 respectively. 19 stocks advanced against 11 declining ones on the index (Provisional)
The BSE Mid-cap index lost 0.04% while Small-cap index was up by 0.16%. (Provisional)
On the BSE Sectoral front, Oil & Gas up 1.34%, Consumer Durables up 1.26%, IT up 1.08%, TECk up 0.94% and Metal up 0.70% were the top gainers while FMCG down 1.41%, Auto down 1.18%, Power down 0.39%, Realty down 0.33% and HealthCare down 0.05% were the top losers.
The top gainers on the Sensex were coal India up 3.61%, Tata Motors up 3.36%, RIL up 2.05%, Tata Steel up 1.72% and ICICI Bank up 1.65%.
On the flip side, Bajaj Auto down 7.70%, Hero MotoCorp down 3.42%, Hindalco down 3.07%, DLF down 2.21% and ITC down 1.69% were the top losers in the index. (Provisional)
Meanwhile, worried about the exodus of the foreign funds from the Indian markets, the government has taken a bold step allowing foreign individual investors, pension funds and trusts to directly invest in Indian equities. Under the new scheme, investors called 'Qualified Foreign Investors' (QFIs) like foreign individual, foreign pension fund or even a foreign trust will be able to invest directly in the Indian equity market. The new scheme is expected to be operational from January 15. The QFIs will have a separate ceiling from FIIs and non-resident Indians (NRIs). A QFI can hold up to 5 per cent of paid-up equity of a company and all QFIs put together cannot hold more than 10 per cent in a company.
A finance ministry statement said that 'this has been done in order to widen the class of investors, attract more foreign funds, reduce market volatility and deepen the Indian capital market.'
However, investment is restricted to QFIs from countries that are compliant with the Financial Action Task Force (FATF) recommendations and are signatories to the international body of securities market, IOSCO's, memorandum of understanding.
According to the SEBI's data, net outflows exceeded $450 million last year, FIIs pulled out money on account of growth falling below 7% and widely-publicized difficulties in obtaining regulatory clearances. With the new scheme investors from over 80 countries can access the Indian equity market, barring Pakistan and few other countries.
The foreign investors are already allowed direct access to Indian mutual fund schemes so it's a step further in the same direction. The measures are intended to widen the investor class, attract more foreign funds, reduce market volatility and deepen the Indian capital market.
India VIX, a gauge for market's short term expectation of volatility gained 1.54% at 27.53 from its previous close of 27.11 on Friday. (Provisional)
The S&P CNX Nifty gained 15.75 points or 0.34% to settle at 4,640.05. The index touched high and low of 4,645.95 and 4,588.05 respectively. 28 stocks advanced against 21 declining ones while 1 stock remained unchanged on the index. (Provisional)
The top gainers on the Nifty were Coal India up 4.04%, Tata Motors up 3.25%, Reliance Communications up 3.07%, Maruti up 2.15% and RIL up 2.08%.
The few equity markets in Asia which were opened on Monday ended lower, while South Korea's benchmark index ended the day flat, as hopes for signs of an economic recovery ahead of a set of key US data releases were tempered by persistent euro zone worries and sluggish domestic manufacturing activity. Meanwhile, data released early on Monday showed South Korea's manufacturing activity for December dipped to a fresh three-year low, underscoring concerns about slowing global demand in the face of an unresolved debt crisis in Europe.
Markets in Taiwan and Indonesia snapped the day's trade in the red on Monday, while several others in the region including China, Hong Kong, Japan and Singapore remained closed in observance of new year's day,
Jakarta Composite declined 12.85 points or 0.34% to 3,809.14 and Taiwan Weighted was down by 119.87 points or 1.69% to 6,952.21.
On the flip side, Seoul Composite was up 0.63 points or 0.03% to 1,826.37.
Earlier the markets made a flat start of the year 2012, a consolation after severe beating till the last of the 2011. Though, traders were remaining on sideways lacking any major cues, the trade continued rangebound till noon. There was some spurt in auto stocks after the announcement of their monthly sales number. Most of the passenger car makers ended 2011 with sales growth. Tata Motors sold 29,417 passenger vehicles in December, up 27% from a year earlier. Mahindra & Mahindra's sales growth in passenger vehicles segment was up 24% to 19,341 units, while, Maruti Suzuki's number despite decline were not as bad as were expected by the street. On the same time the day was not good for the two wheelers maker and Bajaj Auto, TVS Motors and Hero Moto Corp, all lost between 3-8 percent for the day on account of poor auto sales numbers for the month of December. Oil & gas stocks were the lead gainers of the day, mainly supported by the bounce back in market heavyweight Reliance Industries, consumer durables too gained while, there was spurt in IT and technology stocks on the back of depreciating rupee. Banking stocks too gained a bit as Reserve Bank Governor D Subbarao indicated that the central bank could reverse the tight monetary stance adopted by it that had led to the declining growth. FMCG sector remained in the somber mood since beginning and turned out to be the biggest laggard as an Assocham study said that weak rupee and rising input costs may force FMCG companies to increase prices of their products in 2012, which in turn is likely to hit sales during the year by about 10-15 per cent. There was some cautiousness in the market as Finance Minister Pranab Mukherjee said that the budget for 2012-13 ending March will be presented after elections scheduled in five states. Also the concern from the European markets continued to weigh on. Finally the markets managed a close of marginal green.
The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1430:1212 while 116 scrips remained unchanged.
The BSE Sensex gained 60.87 points or 0.39% and settled at 15,515.79. The index touched a high and a low of 15,542.85 and 15,358.02 respectively. 19 stocks advanced against 11 declining ones on the index (Provisional)
The BSE Mid-cap index lost 0.04% while Small-cap index was up by 0.16%. (Provisional)
On the BSE Sectoral front, Oil & Gas up 1.34%, Consumer Durables up 1.26%, IT up 1.08%, TECk up 0.94% and Metal up 0.70% were the top gainers while FMCG down 1.41%, Auto down 1.18%, Power down 0.39%, Realty down 0.33% and HealthCare down 0.05% were the top losers.
The top gainers on the Sensex were coal India up 3.61%, Tata Motors up 3.36%, RIL up 2.05%, Tata Steel up 1.72% and ICICI Bank up 1.65%.
On the flip side, Bajaj Auto down 7.70%, Hero MotoCorp down 3.42%, Hindalco down 3.07%, DLF down 2.21% and ITC down 1.69% were the top losers in the index. (Provisional)
Meanwhile, worried about the exodus of the foreign funds from the Indian markets, the government has taken a bold step allowing foreign individual investors, pension funds and trusts to directly invest in Indian equities. Under the new scheme, investors called 'Qualified Foreign Investors' (QFIs) like foreign individual, foreign pension fund or even a foreign trust will be able to invest directly in the Indian equity market. The new scheme is expected to be operational from January 15. The QFIs will have a separate ceiling from FIIs and non-resident Indians (NRIs). A QFI can hold up to 5 per cent of paid-up equity of a company and all QFIs put together cannot hold more than 10 per cent in a company.
A finance ministry statement said that 'this has been done in order to widen the class of investors, attract more foreign funds, reduce market volatility and deepen the Indian capital market.'
However, investment is restricted to QFIs from countries that are compliant with the Financial Action Task Force (FATF) recommendations and are signatories to the international body of securities market, IOSCO's, memorandum of understanding.
According to the SEBI's data, net outflows exceeded $450 million last year, FIIs pulled out money on account of growth falling below 7% and widely-publicized difficulties in obtaining regulatory clearances. With the new scheme investors from over 80 countries can access the Indian equity market, barring Pakistan and few other countries.
The foreign investors are already allowed direct access to Indian mutual fund schemes so it's a step further in the same direction. The measures are intended to widen the investor class, attract more foreign funds, reduce market volatility and deepen the Indian capital market.
India VIX, a gauge for market's short term expectation of volatility gained 1.54% at 27.53 from its previous close of 27.11 on Friday. (Provisional)
The S&P CNX Nifty gained 15.75 points or 0.34% to settle at 4,640.05. The index touched high and low of 4,645.95 and 4,588.05 respectively. 28 stocks advanced against 21 declining ones while 1 stock remained unchanged on the index. (Provisional)
The top gainers on the Nifty were Coal India up 4.04%, Tata Motors up 3.25%, Reliance Communications up 3.07%, Maruti up 2.15% and RIL up 2.08%.
On
the other hand, Bajaj Auto down 7.57%, Sesa Goa down 4.28%, Hero
MotoCorp down 3.52%, Grasim down 3.45% and Hindalco down 2.85% were the
top losers. (Provisional)
The European markets were trading in green, with
France's CAC 40 up 0.69%, Germany's DAX up 1.46% and Britain's FTSE 100
up 0.10%. The few equity markets in Asia which were opened on Monday ended lower, while South Korea's benchmark index ended the day flat, as hopes for signs of an economic recovery ahead of a set of key US data releases were tempered by persistent euro zone worries and sluggish domestic manufacturing activity. Meanwhile, data released early on Monday showed South Korea's manufacturing activity for December dipped to a fresh three-year low, underscoring concerns about slowing global demand in the face of an unresolved debt crisis in Europe.
Markets in Taiwan and Indonesia snapped the day's trade in the red on Monday, while several others in the region including China, Hong Kong, Japan and Singapore remained closed in observance of new year's day,
Jakarta Composite declined 12.85 points or 0.34% to 3,809.14 and Taiwan Weighted was down by 119.87 points or 1.69% to 6,952.21.
On the flip side, Seoul Composite was up 0.63 points or 0.03% to 1,826.37.
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