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Friday, January 14, 2011
Key corporate results to dictate near-term trend
Earnings from some top Indian firms are in focus after the barometer index BSE Sensex tumbled to 4-month low on Friday, 14 January 2011. High volatility has been the order of the day, which has spooked traders. The market sentiment has been weak due to fears of aggressive interest rate rise in 2011.
Post Market Review - Jan 14 2011
After putting on nearly 1.5% intraday, benchmark indices nosedived a hefty 3% from the highest point of the day to finish the day and the week deep in the red. Sensex lost 322 points to close at 18860 while Nifty finished at 5654, down 97 points. Realty, Banking, Metal and Auto stocks led the fall while IT stocks closed strong. SAIL tanked 6.4% on the back of reporting disappointing set of quarterly earnings announced yesterday after market hours. For the week, both the benchmark indices closed with mammoth cuts of 4.2% each. All the BSE sectoral indices finished in red on weekly basis with Capital Goods and Realty indices plunging the most, down 5.4% and 5.1% respectively. Inflation for the month of December came in at 8.43% compared to 7.48% for the previous month. European markets were trading lower by about half a percent while US stock indices futures were little changed ahead of data on retail sales, industrial production and consumer confidence.
Sensex settles below 19,000; Nifty below 5,700
The key benchmark indices slumped to four-month lows as European stocks fell and as US index futures edged lower after China's central bank raised lenders' reserve requirements by 50 basis points. Wild intraday swings were the order of the day. Increase in inflation in December 2010 reinforced fears of a rate hike by the Reserve Bank of India (RBI) at a policy review on 25 January 2011, with bank stocks tumbling in choppy trade. Interest rate sensitive auto and realty stocks, too, edged lower. The barometer index BSE Sensex fell below the psychological 19,000 mark and the 50-unit S&P CNX Nifty fell below 5,700 level. The market has declined in eight out of the last nine trading sessions.
Grey Market Premiums - Jan 14 2011
C. Mahendra Export 95 to 110 3 to 4
Mid Valley Enter 64 to 70 2 to 2.50
Go fly a kite instead
Don't ignore the small things - the kite flies because of its tail. - Hawaiian Proverb.
The festival of kites is here but the Indian stock indices seem to be in no mood to rise, as headwinds seem to be outweighing the tailwinds. Inflation, FII selling, hardening interest rates, tight liquidity, policy stalemate and pressure on external account are among the key pressure points. And, the market is reflecting mounting worries on all these fronts and more. As if the macro-economic concerns were not enough, we received somewhat disappointing numbers from IT major Infosys.
Daily News Roundup - Jan 14 2011
IOC enter into an agreement with Nuclear Power Co-operation to set up power plants across the country. (ET)
Indian Hotels to open 43 new hotels in next four years. (ET)
Maruti to hike vehicle prices next week to offset higher input costs. (BL)
JSW Steel may increase its product prices by 3%. (BL)
Sensex sinks...IT, Banks hammered
After a strong pull back in the previous trading session, bulls were unable to maintain the momentum. However, the NSE Nifty managed to end above the 5750 levels thanks to some buying seen in the Realty stocks.
Markets to fall at start; Inflation nos eyed
The Indian markets are set to start the session on a negative note mirroring unsupportive global markets; the inflation numbers for December 2010 will be in focus
Headlines for the day:
IL&FS to control Maytas Properties
Britannia forays into breakfast food category
Union Bank to market its first Swiss Franc-denominated debt
Bullion metals end in a mixed mode
Gold inches up but silver retreats considerably
Precious metals ended in a mixed mode on Thursday, 13 January 2011 at Comex. Yellow metal prices inched up as the dollar retreated considerably. But silver prices ended with losses. Prices stayed weak earlier in the day as most of the pressure in the European region regarding concerns over sovereign debt problems eased.
Market may extend recent losses on weak Asian stocks; inflation data eyed
The key benchmark indices may extend recent losses tracking weak Asian markets. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicate a fall of 6.50 points at the opening bell. Housing Development Finance Corporation (HDFC) announces Q3 result today, 14 January 2011.
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