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Monday, May 23, 2011
Indices close below key levels; Sensex down 333 pts
The key indices ended the session with deep cuts, with the Sensex closing below 18000 and the Nifty below 5400
Major headlines
BHEL net profit up 47% in Q4
Tata Chemicals FY11 consolidated net profit up 8%
Mahindra Satyam drops on Q4 net loss
Sensex, Nifty hit 9-week lows as world stocks slide
The key benchmark indices hit 9-week lows, with a setback in world stocks caused by euro zone debt worries hitting sentiment. The BSE 30-share Sensex was down 332.76 points or 1.82%, up about 20 points from the day's low and off close to 275 points from the day's high. The Sensex hit near 9-week low below the psychological 18,000 mark after moving above and below that mark in intraday trade. The 50-unit S&P CNX Nifty hit 9-week low below 5,400 level. The market breadth was weak. Bharat Heavy Electricals (Bhel) slumped on worries of pricing of the proposed follow-on-public offer at a discount to the ruling market price.
Grey Market Premiums - May 23 2011
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Vaswani Ind. | 49 (Upper Price Band) | Discount |
| Sanghvi Forging & Engg. | 85 (Upper Price Band) | +/- 3 to 5 |
| Aanjaneya Life Care | 234 (Middle Price Band) | Discount |
| PFC | 203 | -- |
| Timbor Home | 60 to 70 (Approximate) |
|
Weak global cues may drag markets at start
Today’s opening is expected to be on a weak note on account of losses in the global markets.
Headlines for the day:
RIL may replace ONGC as biggest profit maker
Scooters India's stake sale likely to be over in 2011-12
Drug approvals halt as regulator puts in new clearance system
Market may slide on weak Asian stocks; Bhel Q4 result in focus
The market may slide on weak Asian stocks, which fell as euro zone debt worries resurfaced. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 54 points at the opening bell. Foreign institutional investors (FIIs) sold shares worth Rs 181.55 crore and domestic funds bought shares worth Rs 398.19 crore on Friday, 20 May 2011, as per provisional figures released by the stock exchanges. The market is likely to see a volatile week as derivatives contracts for May 2011 series expire on Thursday, 26 May 2011.
Modest weekly gains for precious metals
Eurozone's debt problems push prices higher
Precious metals ended higher on Friday, 20 May, 2011 at Comex. Prices rose as Eurozone's debt problems resurfaced. Prices added to their gains despite a strong dollar.
Gold for June delivery rose $16.5 or 1.1%, to end at $1,508.9 an ounce on the Comex division of the New York Mercantile Exchange on Friday. For the week, gold gained 1%. Gold ended the month of April higher by 8.1%.
Sensex surges on L&T results...ONGC, ITC drag
The main Indian stock indices accelerated on Friday, extending the gains from the previous session, with the BSE Sensex zooming by nearly 200 points and the NSE Nifty touching the 5500 mark in intraday trading on the back of sustained gains in select index bellwethers.
The market breadth was favourable as the broader indices managed to register decent gains. Barring, Oil & Gas, PSU and FMCG, all the other sectoral indices on the BSE were in the positive territory.
The May pattern
It’s human nature to find patterns where there are none and to find skill where luck is a more likely explanation. - Bernstein William.
Things have turned a little sour for world equity markets in May. Investors seem to have taken the old axiom of 'sell in May and go away' seriously; and they have been lucky so far. India has been no exception with the key indices on a mostly downward spiral. The slide is likely to persist at least at the start of the last week of the month.
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