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Saturday, December 24, 2011

Markets rise after 2-weeks steep slide

The Indian markets surged this week after falling heavily for the two straight weeks. The Sensex rose by 1.6% and the Nifty up by 1.34%.

Headlines for the week

Food inflation eases to 1.81% vs 4.35%

Kingfisher Airlines drops to No.5 position in market share

Inflation seen easing to 6-7% by March: Pranab

RBI may lower GDP projection this fiscal: Subbarao

Govt introduces the Food Security Bill on cheaper food grains

Cabinet approves anti-corruption bill

Market may remain volatile ahead of F&O expiry

High volatility is expected next week as traders roll over positions in futures & options (F&O) segment from the near-month December 2011 series to January 2012 series. The near-month December 2011 F&O contracts expire on Thursday, 29 December 2011.

Foreign institutional investors (FIIs) have been sellers in domestic equities recently. The slowing domestic economic growth, high fiscal deficit, current account deficit and government's policy inaction remain a cause for concern.

BSE Small-Cap, Mid-Cap indices slide over 1% each

Key benchmark indices managed gains as investors resorted to bargain hunting after recent steep slide in share prices. The latest data showing food inflation easing sharply to a near four-year low also aided sentiment. Easing of inflation may prompt the central bank to cut interest rates to revive sagging economic growth. The market fell in three out of five trading sessions in the week gone by.

The food inflation eased sharply to 1.81% in the year to 10 December 2011, from an annual 4.35% rise in the previous week, government data showed on Thursday, 22 December 2011. The fuel inflation remained unchanged at 15.24% in the latest week compared with the prior week, data showed, while the primary articles price index rose 3.78%, compared with an annual rise of 5.48% in the previous week.

Market snaps two-day winning streak

Key benchmark indices edged lower after hitting one-week highs as data showing selling by foreign funds continuously over the past few days hurt sentiment adversely. The BSE Sensex was down 74.66 points or 0.47%, off 172.53 points from the day's high and up 67.42 points from the day's low. Index heavyweight Reliance Industries (RIL) lost over 1% in choppy trade. IT stocks were mixed after strong economic data in the US, the biggest outsourcing market for IT services exporters.

The market today, 23 December 2011, snapped a two-day advance. The Sensex had jumped 638.28 points or 4.2% in the preceding two trading sessions to one-week closing high of 15,813.36 on Thursday, 22 December 2011, from a 28-month closing low of 15,175.08 on 20 December 2011. The Sensex has fallen 384.76 points or 2.38% so far this month. The Sensex has slumped 4,770.39 points or 23.25% in calendar 2011. From a 52-week high of 20,664.80 on 3 January 2011, the Sensex has lost 4,926.10 points or 23.83%. From a 52-week low of 15,135.86 on Tuesday, 20 December 2011, the Sensex has risen 602.84 points or 3.98%.