Sensex, Nifty at 1-1/2-week closing lows

Key benchmark indices fell for the second straight trading session to reach 1-1/2-week closing lows as weak Asian stocks and lower US index futures hurt sentiment. The barometer index, BSE Sensex, fell 263.88 points or 1.51%, off close to 186 points from the day's high and up about 23 points from the day's low. Asian stocks and US index futures fell after Friday's poor US non-farm payrolls data for March. US is the word's biggest economy. Index heavyweight Reliance Industries (RIL) edged lower in volatile trade.

The Sensex has fallen 182.06 points or 1.04% so far in April 2012 (till 9 April 2012). The index has surged 1,767.22 points or 11.43% in calendar 2012 so far (till 9 April 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 2,086.28 points or 13.78%. From a 52-week high of 19,811.14 on 6 April 2011, the Sensex has lost 2,589 points or 13.06%.



Coming back to today's trade, metal stocks fell across the board as global hedge funds reduced bullish bets on commodities in the week ended 3 April 2012. Interest rate sensitive banking stocks declined for the second straight trading session. Capital goods stocks also declined. IT stocks fell after disappointing jobs data in the US, the biggest outsourcing market for Indian IT firms. Except BSE Healthcare index, all the other sectoral indices on BSE were in the red. The market breadth was negative.

The market edged lower in early trade to hit its lowest level in nearly 1-1/2 weeks on weak Asian stocks. The market extended initial losses in morning trade. Weakness continued in mid-morning trade. The market hit fresh intraday low in early afternoon trade. Key benchmark indices were range bound in afternoon trade. The market hit fresh intraday low in mid-afternoon trade. The Sensex extended losses to hit fresh intraday low in late trade.

The BSE Sensex fell 263.88 points or 1.51% to settle at 17,222.14, its lowest closing level since 29 March 2012. The index fell 286.39 points at the day's low of 17,199.63 in late trade. The index declined 78.36 points at the day's high of 17,407.66 in early trade.

The S&P CNX Nifty fell 88.50 points or 1.66% to 5,234.40, its lowest closing level since 29 March 2012. The Nifty hit a low of 5,228 in intraday trade. The Nifty hit a high of 5,287.90 in intraday trade.

The BSE Mid-Cap index fell 1.35% and the the BSE Small-Cap index fell 0.65%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,640 shares declined and 1,179 shares rose. A total of 113 shares were unchanged.

BSE clocked turnover of Rs 1843 crore, lower than Rs 2126.50 crore on Wednesday, 4 April 2012.

From the 30-share Sensex pack, 25 stocks fell and rest of them rose. Cipla (up 1.34%), Bajaj Auto (up 0.95%) and DLF (up 0.64%), edged higher from the Sensex pack.

Index heavyweight Reliance Industries (RIL) declined 0.60% to Rs 742.60, with the stock falling for the second straight day. The stock was volatile. The stock hit a high of Rs 747.80 and a low of Rs 734.10. RIL is seen reporting weak Q4 earnings due to falling refining margins and reduced output from its KG-D6 gas blocks.

RIL early last week said its Jamnagar manufacturing unit is planning to take Maintenance and Inspection (M&I) shutdown of one of the diesel hydro treating unit for approximately three weeks duration from 2 April 2012. Routine activity of catalyst replacement is planned to be carried out during this shutdown and the opportunity will also be utilized to carry out revamp jobs so as to further enhance BS-IV grade diesel production capability from DTA refinery, RIL said. Remaining units of refinery, including crude processing units, are planned to operate at full throughput during this period, RIL said.

FMCG major Hindustan Unilever (HUL) rose 1.06%. HUL and entities of Piramal Realty (Ajay Piramal Group) have signed an agreement for assignment of HUL's leasehold rights of the land and building named "Gulita" situated at Worli Sea Face, Mumbai, for a transaction value of Rs 452.50 crore. The consideration includes both fixed and variable components, HUL said after trading hours on Wednesday, 4 April 2012. HUL will declare its year ended March 2012 results on 1 May 2012.

IT stocks fell after disappointing jobs data in the US, the biggest outsourcing market for Indian IT firms. India's third largest software services exporter by revenues Wipro declined 1.15%. The company said after market hours on Wednesday that rating agency Standard and Poor (S&P) has upgraded the long term corporate credit rating of Wipro from BBB (outlook positive) to BBB+ (outlook stable).

India's second largest software services exporter by revenue Infosys fell 0.97%. The company announces Q4 March 2012 results on Friday, 13 April 2012.

India's largest software services exporter by revenue Tata Consultancy Services (TCS) shed 1.34%, with the stock reversing initial gains.

Among other IT stocks, Rolta India (down 3.16%), Mahindra Satyam (down 2.47%), HCL Technologies (down 1.69%), MphasiS (down 1.5%) and Tech Mahindra (down 1.47%), declined.

Interest rate sensitive banking stocks declined for the second straight trading session. India's biggest private sector bank in terms of net profit, ICICI Bank, declined 2.29%. India's second largest bank by net profit HDFC Bank fell 0.69%

India's largest bank by branch network State Bank of India shed 2.91%. The bank's Managing Director A Krishna Kumar on Saturday, 7 April 2012, said that the bank is aiming for growth of 20% to 25% in credit and deposit in financial year that began April 2012. The bank is expecting a major improvement in its asset quality for the recently ended fiscal year, he said.

Among other banking stocks, Canara Bank (down 3.26%), Kotak Mahindra Bank (down 2.93%), IDBI Bank (down 2.34%), Axis Bank (down 1.98%), Bank of India (down 1.7%), Punjab National Bank (down 1.69%), Federal Bank (down 1.43%), Union Bank of India (down 1.39%), IndusInd Bank (down 1.07%), Bank of Baroda (down 0.82%) and Yes Bank (down 0.32%), declined.

Metal stocks fell across the board as global hedge fund managers lowered net-long positions in a total of 18 US futures and options of different commodities by 2.8% to 1.1 million contracts in the week ended 3 April 2012. Hindalco Industries (down 5.18%), JSW Steel (down 4.39%), Sterlite Industries (down 4.34%), Sesa Goa (down 4.01%), Sail (down 3.88%), Bhushan Steel (down 3.48%), Jindal Steel & Power (down 3.46%), Nalco (down 3.28%), Tata Steel (down 3.21%), Hindustan Zinc (down 2.33%) and NMDC (down 2.32%), declined.

India's largest engineering and construction firm, L&T, declined 3.5%, with the stock falling for the second straight day. L&T during trading hours today said that L&T Construction, part of the L&T conglomerate, has commissioned India's largest solar photo voltaic based power plant (40 MWp) owned by Reliance Power at Dhursar village in Jaisalmer district of Rajasthan. As the largest engineering, procurement and construction (EPC) player in solar power, L&T Construction executed the solar power plant from concept (including detailed design) to commissioning in 129 days. With the commissioning of this plant, L&T Construction has installed 114 megawatts (MW) of utility scale solar PV power plants over the last fiscal -- a benchmark in India's solar EPC industry, L&T said.

L&T during trading hours on Wednesday, 4 April 2012, said its Electrical & Automation business has completed the share sale formalities for the acquisition of UK-based Thalest Group, which is engaged in offering integrated platform management system and integrated bridge system solutions for naval warships, mercantile marine ships, vessels and floating systems.

India's largest power equipment maker by order book Bharat Heavy Electricals (Bhel) dropped 3.71%. Bhel's provisional net profit rose 14.25% to Rs 6868 crore on 13.76% growth in turnover to Rs 49301 crore in the year ended March 2012 over the year ended March 2011. Bhel's order inflow fell 63.48% to Rs 22096 crore in the year ended March 2012 (FY 2012) over the year ended March 2011 (FY 2011). The company announced the provisional results during trading hours on 3 April 2012

Separately, Bhel said on that day it had withdrawn draft red herring prospectus (DRHP) filed with the capital market regulator, Securities and Exchange Board of India (Sebi), for the proposed follow-on public offer. The government was planning to divest 5% of its stake through a follow-on public offer in Bhel, which was approved by the Cabinet in 2011. The Government of India (GoI) owns 67.72% stake in Bhel.

Among other shares in the capital goods sector, Crompton Greaves (down 4.68%), Alstom Projects (down 4.16%), Praj Industries (down 3.79%), Punj Lloyd (down 3.62%), ABB (down 2.65%), Suzlon Energy (down 2.39%), Siemens (down 2.04%), Thermax (down 2.04%), BEML (down 1.62%), SKF India (down 1.62%), Havells India (down 1.04%) and Bharat Electronics (down 0.82%), declined.

Avance Technologies clocked highest volume of 1.36 crore shares on BSE. Kingfisher Airlines (83.28 lakh shares), Cals Refineries (69.78 lakh shares), Suzlon Energy (65.16 lakh shares) and SpiceJet (44.73 lakh shares), were the other volume toppers in that order.

State Bank of India clocked highest turnover of Rs 74.48 crore on BSE. Sun Pharmaceutical Industries (Rs 57.19 crore), United Spirits (Rs 52.13 crore), JSW Steel (Rs 43.81 crore) and Gitanjali Gems (Rs 43.35 crore), were the other turnover toppers in that order.

Foreign institutional investors (FIIs) bought shares worth Rs 45.81 crore on Wednesday, 4 April 2012, as per provisional data from the stock exchanges. Their inflow totaled Rs 1586.87 crore in four sessions from 30 March 2012 to 4 April 2012, as per provisional data from the stock exchanges.

The next major trigger for the market is Q4 March 2012 and year ending March 2012 (FY 2012) earnings. Investors will focus on the guidance provided by the management for the year ending March 2013 (FY 2013) to gauge the earnings outlook.

IT bellwether Infosys announces Q4 March 2012 results on Friday, 13 April 2012. Lube oil major Castrol announces Q1 March 2012 results on 16 April 2012. Private sector bank HDFC Bank unveils FY 2012 results on 18 April 2012. HCL Tech unveils Q3 March 2012 results on the same day. ACC and Hindustan Zinc unveils quarterly results on 19 April 2012. IndusInd Bank reports FY 2012 results on the same day. Cairn India reports FY 2012 results on 20 April 2012.

ICICI Bank unveils FY 2012 results on 27 April 2012. Axis Bank and Siemens announces quarterly results on the same day. Maruti Suzuki India unveils FY 2012 results on 28 April 2012. Titan Industries, Godrej Consumer Products, Exide Industries and Dabur India unveil FY 2012 results on 30 April 2012. FMCG giant Hindustan Lever unveils FY 2012 results on 1 May 2012. Shree Cement unveils FY 2012 results on 15 May 2012. Housing finance major HDFC announces FY 2012 results on 7 May 2012. Colgate Palmolive (India) unveils FY 2012 results on 30 May 2012.

On the macro front, data on industrial production for February 2012 and that on inflation for March 2012 could provide cues on the central bank's likely policy stance at the monetary policy review for 2012-13 due on 17 April 2012.

The government will unveil industrial production data for February 2012 on Thursday, 12 April 2012. Industrial production grew 6.8% in January 2012, lower than 7.5% growth recorded in January 2011.

On Friday, 13 April 2012, the government will unveil data on inflation based on the wholesale price index (WPI) for March 2012. The annual rate of inflation, based on monthly WPI, stood at 6.95% (provisional) for the month of February, 2012 (over February 2011) as compared to 6.55% (provisional) for the previous month and 9.54% during the corresponding month of the previous year.

European markets were closed today, 9 April 2012, for Easter Monday holiday.

Asian stocks fell for a fourth day on Monday after a weaker-than-expected US jobs report cast doubt on the strength of the recovery in the world's biggest economy, denting the earnings prospects for exporters. Key benchmark indices in China, Indonesia, Japan, Singapore, Taiwan and South Korea fell by between 0.3% to 1.57%. The stock market in Hong Kong was shut for a public holiday.

China's annual inflation spiked unexpectedly in March to 3.6% driven by rising food prices, data showed on Monday.

China's fast-growing services sector expanded again in March as business confidence hit an 11-month high, a private sector survey of firms said on Thursday.

Trading in US index futures indicated that the Dow could fall 116 points at the opening bell on Monday, 9 April 2012. US Stocks markets were closed on Friday on account of Good Friday holiday. US payrolls rose far less than expected in March, keeping the door open for further monetary policy support from the Federal Reserve, even as the unemployment rate fell to a three-year low of 8.2%. Employers added 120,000 jobs last month, the United States Labor Department said on Friday, the smallest increase since October.