Be aware that a halo has to fall only a few inches to be a noose.
Brace for a gap-down opening as world markets are in a tizzy amid escalating concerns over the mounting debt problems in a few European nations. Whether the market manages to rebound remains to be seen as FIIs don’t seem to be in a mood to reverse their selling binge, at least for now.
Yesterday only we had warned against getting carried away with Wednesday’s rally. Unfortunately for the bulls, that prediction turned out to be a prophetic one. For those who heeded our advice though might have done better than most. Risk aversion has risen of late amid a spate of fresh worries from China’s tightening, to new restrictions for US banks to sovereign debt concerns in Europe.
For India, the big concern remains in the form of inflation and its ramifications on the stimulus-fueled recovery. The big event for India will be the Union Budget. Expectations are already building up. The Finance Minister has its task cut out with a yawning fiscal deficit staring him in the face. The 3G auction fiasco coupled with the lukewarm response to the NTPC FPO are only adding to his troubles.
Some key support levels could melt amid the world-wide crash. Nifty futures trading in Singapore are down over 2% as of now. The Nifty could find support at 4740-4750. If there is no improvement in Asian markets, it could even fall below 4700. If the market rebounds, which could be either today or next week, the Nifty is likely to meet resistance at around 4900.
Indian markets ended near day’s low on Tuesday reversing almost all the previous day’s gains. Benchmark indices remained under pressure right from the start, thanks to weak global cues and all round selling, as traders and investors seemed to be using every rise to offload their positions. Even though bulls did attempt a pull back in the afternoon trades, nevertheless it proved to be very short lived.
The realty, metals and the auto stocks witnessed profound selling throughout the day even the Mid-Cap and the Small-Cap stocks were not spared.
The BSE Sensex fell 271 points to end at 16,223 after touching a high of 16,500 and a low of 16,188. The Nifty fell 86 points to end at 4,845.
Equity markets in Asia ended in the red. The Nikkei in Japan was down 0.5%, while Australia's S&P/ASX ended higher by 0.5%. The Shanghai SE Composite was down 0.3% and Hang Seng index in Hong Kong was down 1.5%.
In Europe, stocks were trading red. The DAX in Germany was down 0.8% and the CAC 40 index in France was down 0.7%. The FTSE in the UK was down 0.7%.
Coming back to India, all the BSE sectoral indices ended in the red. The BSE Realty index was the top loser, shedding 4%, followed by the Metal index that was down 3.3% and the BSE Auto index was down 2.2%. The BSE Mid-Cap index fell 2% while BSE Small-Cap index ended lower by 1.6%.
Among the 30-components of Sensex 27 ended in the negative terrain and only ONGC, ITC and Hero Honda ended in the green. Hindalco, JP Associates, Tata Motors, DLF and Tata Steel were among the top losers.
Outside the frontline indices, the big losers in the broader market were JP Hydro, GMR Infra, Jai Corp and Videocon Ind. On the other hand, gainers included P&G, MMTC, Godrej Cons and Central Bank.
The annual rate of food inflation rose to 17.56% for the week ended January 23, 2010 as compared to 17.4% in the previous week.
However, on a week-on-week basis, the index for food articles group declined marginally by 0.1% to 286.5 from 286.7 for the previous week. Annual wholesale inflation picked up to 7.31% in December 2009 as compared with 4.78% in November, 2009.
ACC posted a net profit of Rs16.06bn up 32.5% for the year ended December 31, 2009 as compared to Rs12.12bn for the year ended December 31, 2008. Total Income has increased from Rs75.71bn for the year ended December 31, 2008 to Rs82.68bn for the year ended December 31, 2009.
While, the group has posted a net profit of Rs15.63bn for the year ended December 31, 2009 as compared to Rs10.99bn for the year ended December 31, 2008. Total Income has increased from Rs79.74bn for the year ended December 31, 2008 to Rs87.25bn for the year ended December 31, 2009.
The stock ended lower by 3% to end at Rs879, it opened at Rs890 hitting an intra-day high of Rs890 and an intra-day low of Rs849 recording volumes of over 0.14mn shares on BSE.
Dr. Reddy’s Labs announced that it doesn’t plan to sell a stake to GlaxoSmithKline Plc. The consideration of a share sale to Glaxo "was never there," CFO Umang Vohra was quoted as saying. "As of now there is no conversation of any financial stake that I am aware of."
Shares of Dr Reddy’s Labs ended higher by 0.5% to end at Rs1161. The stock hit an intra-day high of Rs1168 and intra-day low of Rs1135 recording volumes of over 74,000 shares on BSE.
Shares of Unichem Laboratories advancedby 1% to end at Rs347 after the company's Ghaziabad Formulationfacility has been recertified by Medicines & Healthcare ProductsRegulatory Agencies (MHRA), U.K.
The facility is recertified for both Medicines for Human as well as Veterinary use.
Shares of Kiri Dyes and Chemicals hit 52-week high and erased gains ending lower by 3.6% atRs809. The company announced that it has acquired world's leadingmultinational DyStar Group through its SPV Kiri Holding Singapore Pvt.Ltd.
Shares of Mounteverest Trading was locked at 5% upper circuit to Rs568.75 after the board of directors decided to allot 3 equity shares as bonus shares for every 1 equity share held by the shareholders on the record date. The scrip opened at Rs568.75 hitting an intra-day high of Rs568.75 and an intra-day low of Rs545 recording volumes of over 7,000 shares on BSE.
Shares of Advanta India shot up by over 4.5% to end at Rs530 after the company announced that its subsidiary, Advanta US Inc., has acquired 100% of the Assets and Business of Crosbyton Seed Company ("CSC") Crosbyton, Texas, USA.