Wednesday, November 30, 2011
The Indian markets rallied for the second consecutive day, with the Sensex rising by 115 points and the Nifty up by 27 points
Headlines for the day
India’s GDP at 6.9% in Q2 versus 7.7% in Q1
Economy likely to grow 7.3% in FY12: Pranab
Ansal Housing hits 20% upper circuit on buyback plan
Thomas Cook arm ties up with Bajaj Allianz
Bharti Airtel crosses 50 million mobile customers in Africa
Nifty December 2011 futures were at 4843.25, at a premium of 11.25 points compared to spot closing of 4832. Turnover on NSE's futures & options (F&O) segment surged to Rs 112728.47 crore from Rs 92298.96 crore on Tuesday, 29 November 2011.
ICICI Bank December 2011 futures were at 734.40, at a premium over spot closing of 730.30.
State Bank of India (SBI) December 2011 futures were at 1734, at a discount compared to spot closing of 1739.25.
Key benchmark indices edged higher amidst volatility supported by gains in index heavyweight Reliance Industries (RIL), which jumped nearly 2%. News trickled in after market hours that China's central bank cut the reserve requirement ratio for its banks by 50 basis points for the first time in nearly three years to ease credit strains and shore up activity in the world's second-largest economy. The BSE Sensex was up 115.12 points or 0.72%, up close to 275 points from the day's low and off about 55 points from the day's high. The barometer index, BSE Sensex settled above the psychological 16,000 mark after alternately moving above and below that level earlier in the day. The market breadth was negative.
Reliance Industries has shut four wells in its Krishna Godavari-D6 gas fields, off the east coast, due to high water ingress leading to output dipping to 41mn cubic meters per day. (BS)
In yet another warning from Infosys about the economic environment, the company has said clients are asking for a slower start. (ET)
Lenders to the GTL group have sought a personal guarantee from the company’s promoter as part of the negotiations for corporate debt restructuring. (BS)
Indian stock indices resumed their southbound journey, reversing part of the previous session’s stellar rally, after the Government failed to build a political consensus on the thorny issue of allowing FDI in multi-brand retail. The parliament was adjourned for the sixth consecutive day today as various parties, including key UPA allies, continued to demand a rollback of the Cabinet decision on opening up the retail trade.
Adding pressure to the fragile sentiment were reports that Standard & Poor's could downgrade the outlook on France's 'AAA' rating to negative in the next few days. Moody's Investors Service said that it may cut subordinated debt ratings on some EU banks. In addition, Fitch Ratings warned the US about its ballooning budget deficit.
What seems to us as bitter trials are often blessings in disguise – Oscar Wilde.
Blessings in the market are hard to come by for now. The bitter trials and tribulations continue even as a ray of hope appears in Europe. The ongoing hullabaloo over FDI in retail remains while the PM strongly, for a change, defends the move. Parliament has hardly functioned in the six sittings this winter session. The scenario may not change much, as the opposition to FDI in retail reaches a crescendo.
In fact, the Centre may have to brace for another political storm; this time over the proposed Lokpal Bill. Anna Hazare is not happy with a draft and has threatened another agitation. In short, political developments are likely to hog the headlines in the short term.
Gold ends higher but silver turns pale
Precious metals ended mixed on Tuesday, 29 November 2011 at Comex. Yellow metal prices ended higher due to weak dollar and higher crude oil prices. Silver prices dropped.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa. But bullion metals have registered increase in prices despite strong dollar in recent times and vice versa.
The market may extend Tuesday's (29 November 2011) losses on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 13 points at the opening bell.
On the macro front, the government unveils Q2 September 2011 gross domestic product (GDP) data today, 30 November 2011. The GDP is seen rising 6.9% in Q2 September 2011 as per median estimate of a total of 14 economists polled by Capital Market. The economy expanded 7.7% in Q1 June 2011 from a year earlier, helped by strong growth in the services sector. The GDP is seen rising 7.3% in the fiscal year through March 2012 (FY 2012) as per median estimate of the poll.