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Saturday, July 28, 2012

All eyes on RBI's monetary policy review

Next batch of first quarter corporate earnings, the Reserve Bank of India's (RBI) monetary policy review, progress of the monsoon rains and monetary policy review by US Federal Reserve will dictate near term trend on the bourses. Automobile and cement stocks will be focus as companies from these two sector start unveil monthly sales volume data for July 2012 from Wednesday, 1 August 2012. Investors' focus is currently on Q1 June 2012 earnings. Bank of Baroda and GAIL (India) unveil Q1 results on Monday, 30 July 2012. Jaiprakash Associates and Cipla unveil Q1 results on Tuesday, 31 July 2012.

BSE Small-Cap, Mid-Cap indices slump

The market tumbled for the third consecutive week as stocks fell across the globe on renewed concerns over debt problems in Spain and Greece. The domestic market also fell on concerns over deficient monsoon and delay in key economic reforms in India. The BSE Sensex declined 319.25 points or 1.86% to 16,839.19. The 50-unit S&P CNX Nifty fell 105.25 points or 2.02% to settle at 5,099.85. The BSE Mid-Cap index slumped 4.80% and the BSE Small Cap index slumped 4.76%. Both these indices underperformed the Sensex.

Rising bad loans rattle PSU bank stocks

Key benchmark indices snapped two-day losing streak as euro zone debt worries eased after European Central Bank (ECB) President Mario Draghi on Thursday, 26 July 2012, said the ECB will do whatever is necessary to protect the euro zone from collapse, raising hopes for action to ease strains for highly indebted euro zone member states facing pressures to seek a bailout. The barometer index, BSE Sensex, jumped 199.37 points or 1.2%, off about 135 points from the day's high and up close to 80 points from the day's low. But, a number of small-cap and mid-cap stocks fell. The market breadth was weak. BSE Mid-Cap and Small-Cap index were both in red, underperforming the Sensex.