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Sunday, August 19, 2012

Hattrick of marginal gains for Indian markets

The Indian markets registered marginal gains in a truncated week with the Sensex rising 0.76% and the Nifty up by 0.86% for the week ended August 17, 2012. Major Headlines of the week Inflation for July at 6.87% vs 7.25% in June India’s export slips 14.8% in July this year PMEAC lowers 2012-13 GDP forecast to 6.7% Jet fuel price up 3.2%; 3rd straight hike since July RBI should pay 7% interest on CRR deposits: Fin Ministry

Market may consolidate

The market may consolidate in a truncated week ahead amid lack of major triggers in the near term. The stock markets remains closed on Monday, 20 August 2012, on account of Ramzan Id. The progress of monsoon rains will be closely watched. The monsoon rains--which make up around 70% of India's annual rainfall--are crucial to the nation's agriculture sector and broader economy. More than 60% of the country's farmland is rain-fed. The India Meteorological Department (IMD) expects normal rains in August -- a critical month for summer crops. It expects rainfall to be 5-6% below average in September due to the possibility of El Nino. The weather office expects rainfall during August-September to be 91% of the long-term average.

IT, FMCG stocks advance

Key benchmark indices eked out small gains in choppy trade as euro zone debt worries eased after German Chancellor Angela Merkel on Thursday, 16 August 2012, said Germany will do whatever it can to keep the euro. The market sentiment was also boosted by data showing that foreign funds remained buyers of Indian stocks on Thursday, 16 August 2012. The barometer index, BSE Sensex, advanced 33.87 points or 0.19%, off 110.31 points from the day's high and up 68.46 points from the day's low. FMCG stocks rose on renewed buying, with Hindustan Unilever (HUL) and Bajaj Corp scaling record high and Tata Global Beverages hitting 52-week high. Index heavyweight and cigarette maker ITC recovered from Thursday's slide. IT stocks rose after tech-heavy Nasdaq Composite index rose 1% on Thursday, 16 August 2012. The Sensex has gained 454.90 points or 2.63% in this month so far (till 17 August 2012). The Sensex has jumped 2,236.16 points or 14.46% in calendar 2012 so far (till 17 August 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 2,555.22 points or 16.88%. From a 52-week high of 18,523.78 on 22 February 2012, the Sensex has lost 832.70 points or 4.49%.