Friday, July 27, 2012
Positive economic data and ECB's comments fuel prices higher Crude prices ended higher on Thursday, 26 July 2012 at Nymex. Prices rose as the European Central Bank signaled its intention to preserve the euro. Earlier this morning, President Mario Draghi made supportive comments, which resulted in a spike in the euro, commodities and equity markets around the world. Draghi's comments came as the market is also anticipating further stimulus in the U.S. and China. Better than expected economic data at Wall Street also pushed up prices. Light and sweet crude for September delivery rose $0.42 (0.5%) to $8.39 a barrel on the New York Mercantile Exchange on Thursday.
Key benchmark indices surged in early trade as euro zone debt worries eased after European Central Bank (ECB) President Mario Draghi on Thursday, 26 July 2012, said that the ECB will do whatever it takes to preserve the euro. The market breadth was strong. All the 13 sectoral indices on BSE were in the green. The barometer index, BSE Sensex, was up 247.49 points or 1.49%. Index heavyweight and cigarette maker ITC edged higher in early trade after the company reported strong Q1 results during trading hours on Thursday, 26 July 2012. Another index heavyweight Reliance Industries (RIL) also edged higher. Cement major ACC gained after strong Q2 results. Sterlite Industries (India) shrugged off weak Q1 results. India's largest private sector bank by net profit ICICI Bank surged ahead of its Q1 results today, 27 July 2012.
Key benchmark indices fell for the second straight day and reached their lowest closing level in more than seven weeks on concerns arising from erratic monsoon rains this year. The market sentiment was also hit adversely after data showed selling of Indian stocks by foreign funds on Wednesday, 25 July 2012. The barometer index, BSE Sensex, was down 206.23 points or 1.22%, up close to 40 points from the day's low and off about 260 points from the day's high. The market breadth was weak. All the 13 sectoral indices on BSE were in the red. A number of small-cap and mid-cap stocks fell. BSE Small-Cap and Mid-Cap indices lost more than 2% each. From a recent high of 16,918.08 on 24 July 212, the Sensex has declined 278.26 points or 1.64% in two trading sessions. The Sensex has lost 790.16 points or 4.53% in this month so far (till 26 July 2012). The Sensex has jumped 1,184.90 points or 7.66% in calendar 2012 so far (till 26 July 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 1,503.96 points or 9.93%. From a 52-week high of 18,523.78 on 22 February 2012, the Sensex has lost 1,883.96 points or 10.17%.