Friday, June 22, 2012
Key benchmark indices snapped three-day winning streak after state-run India Meteorological Department (IMD) cut the expected quantum of total rainfall in the country for 2012. The barometer index, BSE Sensex, fell below the psychological 17,000 mark, a day after regaining that mark on Thursday, 21 June 2012. The Sensex shed 60.05 points or 0.35%, off 43.55 points from the day's high and up 164.71 points from the day's low. The market breadth was negative. Weakness in global stocks also weighed on sentiment. The Sensex has risen 753.98 points or 4.64% so far in this month (till 22 June 2012). The barometer index has gained 1,517.59 points or 9.81% in calendar 2012 so far (till 22 June 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 1,836.65 points or 12.13%. From a 52-week high of 19,131.70 on 8 July 2011, the Sensex has lost 2,159.19 points or 11.28%.
Tatas-owned Land Rover said it has tied up with the UK-based racing vehicle maker Bowler to supply technologies and jointly brand the latter’s products. (BL) Order backlog is expected to ease with Honda Motorcycle and Scooter India (HMSI)’s third plant in Karnataka set to commence operations next year. (BL) The Competition Commission of India (CCI) has levied a penalty of over Rs63bn on 11 cement companies for price cartelisation. (BL)
The benchmark Indian stock indices ended with smart gains on Thursday, extending its winning streak to a third straight trading session. After consolidating in the first half, the markets galloped in the mid afternoon trades on the back of short-covering and fresh buying in Banking and Real Estate shares. Capital Goods, Power and PSU shares also accelerated. However, sustained weakness in index heavyweights Reliance Industries and TCS kept the gains in check. The market participants cheered a sharp drop in crude oil prices. Oil futures trading in New York declined to the lowest level in eight months after US stockpiles unexpectedly swelled and the Federal Reserve cut its outlook on the world's largest economy. In addition, a report today signaled that China’s manufacturing will shrink for an eighth straight month in June. The BSE Sensex ended at 17,032 gaining by 0.8% or 136 points. It had earlier touched a day’s high of 17,050 and a day’s low of 16,799. It opened at 16,855.
"Life is mostly froth and bubble, Two things stand like stone, Kindness in another's trouble, Courage in your own" - Adam Lindsay Gordon The froth seems to be coming off now. Crude oil has plunged and so has safe haven gold. US dollar appears to be the king right now. Despite a bailout for Spanish banks and a favourable Greek election, uncertainties abound about the Eurozone debt crisis. The troublesome Europe has gradually taken toll on US and China, two largest economies of the world. Markets are clamouring for fresh round of stimulus from the central banks.
The markets head towards a negative opening on account of weak global markets. SGX Nifty is also trading 59 points lower. Events for the day: Ex-date for bonus issue of 8K Miles Software Services, Info Edge (India). Ex-date for final dividend of Granules India.
Key benchmark indices edged higher for the third straight trading session and attained seven-week closing highs after data showed resumption of buying of Indian stocks by foreign institutional investors on Wednesday, 20 June 2012. The barometer index, BSE Sensex, moved past the psychological 17,000 level. The Sensex jumped 135.93 points or 0.8%, up close to 235 points from the day's low and off about 20 points from the day's high. Banking, realty and capital goods stocks led the rally. Bank shares rose after Financial Services Secretary D.K. Mittal said India is very well poised to tackle a global economic crisis and played down concerns over the health of state-run banks. From a recent low of 16,705.83 on 18 June 2012, the Sensex has risen 326.73 points or 1.95% in three trading sessions. The Sensex has risen 814.03 points or 5.01% so far in this month (till 21 June 2012). The barometer index has gained 1,577.64 points or 10.2% in calendar 2012 so far (till 21 June 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 1,896.70 points or 12.53%. From a 52-week high of 19,131.70 on 8 July 2011, the Sensex has lost 2,099.14 points or 10.97%.