Post Market Review - Jan 13 2011

Yesterday's mammoth recovery proved deceptive as benchmark indices gave away all the gains made in yesterday's trade, dragged down by Banking and IT stocks. Sensex slumped 351 points to close at 19183 while Nifty ended at 5752, down 111 points. BSE mid-cap and small-cap indices lost 0.8% and 0.6% respectively. Tech giant Infosys reported consolidated net profit of Rs. 1780 cr for the quarter ended December 2010, a growth of 2.5% q-o-q which fell short of the expectation of about Rs. 1815 cr. The company also missed estimates for future sales growth and warned of sluggish global economic growth. Infosys stock plunged 5.2%. Food inflation for the week ended January 1 fell to 16.91% from the 18.32% a week ago. Primary article inflation too eased from 20.2% to 17.58% while fuel price index rose 11.53% as against 11.63% in the previous week. European markets, slipped after a positive start and were trading marginally in the red.US stock indices futures too were marginally lower ahead of data on the labor market and international trade.




Barring BSE Realty index, that gained 0.5%, all other sectoral indices finished in red with Bankex and IT indices losign the most, down 3.5% and 3.4% respectively. Infosys and PNB were the top losers among the Nifty stocks, shedding 5.2% and 4.8% respectively while Ambuja Cement and ONGC gained the most, putting on 3.4% and 1.5% respectively. BSE advance-decline ratio stood at 1:1.5.