Saturday, January 21, 2012
Markets posted gains for the third consecutive week and rose 4% on positive global cues and strong foreign fund inflows
Headlines for the week
December inflation at 7.47 % vs 9.1% in November
Supreme Court rules in favour of Vodafone in tax case
RIL Q3 net profit falls by 14%
HDFC Bank Q3 net profit up 31%
Wipro Q3 consolidated net profit up by 10%
TCS Q3 consolidated net profit up by 18%
Hero MotoCorp Q3 net profit jumps by 43%
HCL Tech Q2 net profit up by 43%
ITC Q3 net profit jumps 22%
High volatility is expected in a truncated week ahead as traders roll over positions in futures & options (F&O) segment from the near-month January 2012 series to February 2012 series. The near-month January 2012 F&O contracts expire on Wednesday, 25 January 2012. The stock market remains closed on Thursday, 26 January 2012, on account of Republic Day.
The Reserve Bank of India (RBI) is widely expected to keep its key lending rate viz. the repo rate steady at the Third Quarter Review of Monetary Policy 2011-12 on Tuesday, 24 January 2012, as headline inflation remains high. Data released early this week showed headline inflation eased to two-year low of 7.47% in December 2011 from 9.11% in November 2011. But prices of manufactured products -- a key gauge of core inflationary pressures -- remained elevated.
Key benchmark indices reached their highest closing level in more than six weeks on data showing heavy buying of Indian stocks over the past few days by foreign funds. Intraday volatility was high. The barometer index, BSE Sensex, rose 95.27 points or 0.57%, up 127.30 points from the day's low and off 49.47 points from the day's high. The market breadth was negative. Cigarette major ITC dropped on profit taking after reporting strong Q3 results. IT major Wipro rose after strong Q3 results.
The Sensex has jumped 1,284.09 points or 8.3% so far in this month. From a 52-week high of 19,811.14 on 6 April 2011, the Sensex has lost 3,072.13 points or 15.50%. From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 1,603.15 points or 10.59%.