Heard on the street
Sun Pharma eyeing Torrent Pharma?
The Ranbaxy-Daichii deal has sparked off rumours about many more M&A transactions in the pharmaceutical industry. The latest buzz is that Vadodara-based Sun Pharmaceuticals is eyeing a substantial stake in the Ahmedabad-based Torrent Pharmaceuticals. According to market sources, Sun Pharma is gunning for at least 50% of the promoter’s stake in Torrent Pharma. Promoters hold 74.09% in Torrent Pharmaceuticals. Though email queries send to both the companies failed to elicit any response, senior officials have refuted any such development.
“We are not looking for any domestic acquisitions at the moment. Further, we do not like to comment on market rumours,” said a Sun Pharma spokesperson. An analyst, who is tracking Sun Pharma closely, also termed the deal as highly improbable. “The company will utilise all its resources to close its merger arrangement with Israel-based Taro Pharmaceutical. The Indian company is already in trouble with Taro moving court against Sun for protecting minority shareholders in the event of the former trying to gain voting rights through open market share purchase,” the analyst said. According to market sources, a couple of operators (one of whom is a big-shot in diamond trade) and some funds have been buying Torrent Pharma shares in sizeable quantities over the last few days. Torrent Pharma ended 1.2% lower at Rs 155 while Sun Pharma shed 3% to close at Rs 1,429 on the BSE on Monday.
Chinese boost for Anu’s Labs
Recently-listed Anu’s Laboratories is riding high on the back of China’s efforts to clamp down on chemical factories ahead of the Beijing Olympics. According to market buzz, shortage of raw material supplies from China will provide a boost to intermediary companies like Anu’s Lab as acetophenone will not be available for shipments from China during the peak demand season of monsoons from mid-July to end-August. China has made transportation of chemical and other hazardous substances a difficult task. Despite the positive talk surrounding the stock, Anu’s Lab shares fell 5% to close at Rs 386. To cash on this opportunity, the company has initiated a capacity expansion to meet a sudden surge in demand. Market sources add that the company is in talks with a Chinese company for a joint venture to further strengthen its position. When contacted, Anu’s Labs managing director Hari Babu declined to comment on these developments.
Real estate gains await Modern India
Mumbai-based Modern India is bucking the bearish wave that has engulfed real estate companies of late. Over the last one week, the stock has gained close to 16%. According to market buzz, the company is selling some of its apartments and penthouses for close to Rs 80-90 crore in Belvedere Court in Mahalaxmi. When contacted, Modern India chairman and managing director VK Jatia declined to comment. The stock closed at Rs 279, up 10% from the previous close. According to informed sources, company will report an EPS of about Rs 26-28 for the financial year 2008-09. (Contributed by Shailesh Menon & Apurv Gupta)
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Stocks to watch: DLF, Amtek, GHCL
Religare puts 'buy' on Sintex Industries; target Rs 587
STCI assigns 'outperformer' to Hindalco; target Rs 180
Bears go hammer and tongs at RIL
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Infosys Technologies Annual/Directors Report
Technical Calls - June 24 2008
EIH Hotels / Varun Shipping
Ambuja Cements / Mercator Lines
Zee Entertainment / BPCL
Shanti Gears / India Offshore Sector Update
China Metals / Information Technology - Sector Update
Shipping Sector / India Steel Sector
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24 June 2008
'China, India among worst performing stock markets of 2008' : ET
'China, India among worst performing stock markets of 2008'
NEW YORK: India and China, two of the investors' biggest darlings not so long ago, are among the world's worst-performing stock markets this year, says the Wall Street Journal (WSJ). Indian shares are down 28 percent this year as of Friday, clearly a bear phase. Chinese stocks have faced a worst fate - tumbling 46 percent, the WSJ reported on Monday.
Both countries started 2008 with stocks trading at expensive levels, leaving them vulnerable to a correction. While economic growth goes on apace in the two countries, it is not expected to match last year's superb performance. Growth could be further dented because investors are increasingly anxious about rising inflation and government efforts to stem it. June is likely to witness the fifth monthly loss in six months for a deeply depressed Chinese stock market that has seen some $2 trillion in market value evaporate since January.
Down by more than half from its peak, the Shanghai Composite Index is trading at levels last seen in early 2007. Many international investors are bearish, too, on India and China. "Neither is looking outstandingly attractive, but they're starting to get back in touch with reality," Allan Conway, who manages $23 billion in emerging-market shares for Schroders in London, was quoted as saying by the WSJ. Shares in India are trading at about 17 times their 2008 earnings, according to UBS estimates, as are Chinese shares in which foreigners invest.
Foreign investors have pulled a net total of more than $5.5 billion out of Indian stocks this year, according to Standard Chartered Bank. China's domestic stock market remains almost entirely closed to foreigners, whose investment is limited to a quota of about $10 billion. Foreigners can also buy some big Chinese shares in Hong Kong, where the Hang Seng index is down 18 percent this year. In a sign that not all emerging markets can be lumped together, stocks in Brazil and Russia have, however, held up relatively well, the WSJ said.
Even the US stocks haven't fared as badly as India and China, despite mounting pressure from credit crisis and rising oil prices - the Dow Jones Industrial Average is down 11 percent this year. Still, markets in India and China remain much higher than they were a few years ago, the business daily reported. India is still up 55 percent from the start of 2006, but it has its own concerns. If 2007 was a bumper year for India initial public offerings (IPO), these days such deals are getting a cold reception. Since the listing of Reliance Power, India's biggest IPO, the market has turned sour and other high-profile IPOs have been shelved. In China, the Shanghai index is still at double its July 2005 level, so some investors remain in good shape.
Bear bug: India's richest 5 incur Rs 5 tn loss
Source: http://www.theeconomictimes.com. We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information.
NEW YORK: India and China, two of the investors' biggest darlings not so long ago, are among the world's worst-performing stock markets this year, says the Wall Street Journal (WSJ). Indian shares are down 28 percent this year as of Friday, clearly a bear phase. Chinese stocks have faced a worst fate - tumbling 46 percent, the WSJ reported on Monday.
Both countries started 2008 with stocks trading at expensive levels, leaving them vulnerable to a correction. While economic growth goes on apace in the two countries, it is not expected to match last year's superb performance. Growth could be further dented because investors are increasingly anxious about rising inflation and government efforts to stem it. June is likely to witness the fifth monthly loss in six months for a deeply depressed Chinese stock market that has seen some $2 trillion in market value evaporate since January.
Down by more than half from its peak, the Shanghai Composite Index is trading at levels last seen in early 2007. Many international investors are bearish, too, on India and China. "Neither is looking outstandingly attractive, but they're starting to get back in touch with reality," Allan Conway, who manages $23 billion in emerging-market shares for Schroders in London, was quoted as saying by the WSJ. Shares in India are trading at about 17 times their 2008 earnings, according to UBS estimates, as are Chinese shares in which foreigners invest.
Foreign investors have pulled a net total of more than $5.5 billion out of Indian stocks this year, according to Standard Chartered Bank. China's domestic stock market remains almost entirely closed to foreigners, whose investment is limited to a quota of about $10 billion. Foreigners can also buy some big Chinese shares in Hong Kong, where the Hang Seng index is down 18 percent this year. In a sign that not all emerging markets can be lumped together, stocks in Brazil and Russia have, however, held up relatively well, the WSJ said.
Even the US stocks haven't fared as badly as India and China, despite mounting pressure from credit crisis and rising oil prices - the Dow Jones Industrial Average is down 11 percent this year. Still, markets in India and China remain much higher than they were a few years ago, the business daily reported. India is still up 55 percent from the start of 2006, but it has its own concerns. If 2007 was a bumper year for India initial public offerings (IPO), these days such deals are getting a cold reception. Since the listing of Reliance Power, India's biggest IPO, the market has turned sour and other high-profile IPOs have been shelved. In China, the Shanghai index is still at double its July 2005 level, so some investors remain in good shape.
Bear bug: India's richest 5 incur Rs 5 tn loss
Source: http://www.theeconomictimes.com. We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information.
23 June 2008
Is Reliance Industries over-owned?: Moneycontrol.com
Is Reliance Industries over-owned?
Reliance has slipped below THE 2,000 mark for the first time since September 12, 2007. It fell 38.5% from its all-time high of Rs 3252.
What could be the key trigger for this event? Is RIL overowned? On a relative basis, Reliance Industries is held by 253 mutual fund schemes, while BHEL amounts to 207, Bharti Airtel is held by 197 MF schemes as is ICICI while L&T is at 190.
With Reliance MFs hold 2.72% stake in the company, out of which 137 schemes have more than 5% exposure and 26 schemes have exposure of more than 10%.
MAXIMUM EXPOSURE TO RIL
Fund Name Net Asset (%) Invst (Rs Cr)
ICICI Prudential 9.16 408.60
Rel Div Power 5.68 313.00
Rel Natural Resources 5.15 280.21
DSPML T.I.G.E.R. 6.56 264.91
Morgan Stanley Growth 7.95 263.63
Fidelity Equity 7.36 223.80
Reliance Equity 8.22 214.63
Sundaram Energy 9.45 211.28
Reliance Vision 5.52 206.95
ICICI Pru Dynamic 12.24 204.30
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Other MC stories:
Nifty ends below 4300; CG, power, realty...
Markets Snapshot
Markets slide on back of weak global cues from US market, rising crude prices
Nifty closes below 4,300 for 1st time since Aug 24, '07
Sensex ends down 278 pts at 14293.3; recovers nearly 130 pts from days low
Nifty ends down 81 pts at 4266.4; recovers nearly 40 pts from days low
Nifty takes support at 4225; faces resistance at 4320 during the day
Sell-off witnessed in broader marets; CNX Midcap Index down 4%,
BSE Small-cap Index down 3.5%
RIL ends down down 3.5% at 2025.7; slips below 2000 during the day
Cap Goods under pressure; index down 5.3%; L&T down 6.5%, ABB down 4%, BHEL down 3.2%
Index losers; HIndalco down 8%, Unitech down 7.2%, Tata Comm down 6.8%, Suzlon down 6.5%
Index gainers; ONGC, HDFC up nearly 2%, HCL Tech up 1.5%, Wipro, Infy, Satyam up nearly 1%
Losers; GHCL down 10%, BOI down 9.3%, Rel Cap down 9%, Ibulls Fin down 8%, JP Associates down 7.5%
NSE Advanve Decline at 1:10
Total market turnover at Rs 83165 cr Vs Rs 85088 cr on Friday
F&O turnover at Rs 66917 cr Vs Rs 58533 cr on Friday.
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Stocks at life-time low
Equity CMP Issue Price 52-week high
DLF 450 525 1225
Omaxe 155 310 612
Parsvnath 143.7 300 598
Sobha 330 640 1179
Brigade Ent 145 390 490
Kolte Patil 69.5 145 272
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Others stocks hittng life-time low
CBI Rel Power BPCL HPCL SpiceJet Indiabulls Sec Power Grid
F&O Snapshot
Nifty rollover at 27%, Market wide rollovber at 24%
Short covering seen on Nifty futures when index approached 4200
Nifty june futures ends at mild prem; July futures at 18 pts discount
Fresh short buildup seen in bank nifty and across most banking counters
4200 July Put add around 25% in OI; 4300 call seen most active in July series
F&O Stocks
RPL down 1.5%; add 51.5 lakh shares in OI
IFCI down 7.1%; add 49 lakh shares in July series
Suzlon down 5.7%; add 29 lakh shares in July series
JP Associates down 8.5%; add 29 lakh shares in July series
Unitech down 6.2%; add 22.5 lakh shares in July series
Ispat down 3.9%; add 45.5 lakh shares in OI
SAIL down 4%; add 20 lakh shares in OI
Rollover
Ultratech: 70% India Cement: 59% Grasim: 48%
Parsvnath: 40% HDFC Bank: 35% NTPC: 34%
DLF: 33% Unitech: 30%
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Source: http://www.moneycontrol.com. We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information.
Reliance has slipped below THE 2,000 mark for the first time since September 12, 2007. It fell 38.5% from its all-time high of Rs 3252.
What could be the key trigger for this event? Is RIL overowned? On a relative basis, Reliance Industries is held by 253 mutual fund schemes, while BHEL amounts to 207, Bharti Airtel is held by 197 MF schemes as is ICICI while L&T is at 190.
With Reliance MFs hold 2.72% stake in the company, out of which 137 schemes have more than 5% exposure and 26 schemes have exposure of more than 10%.
MAXIMUM EXPOSURE TO RIL
Fund Name Net Asset (%) Invst (Rs Cr)
ICICI Prudential 9.16 408.60
Rel Div Power 5.68 313.00
Rel Natural Resources 5.15 280.21
DSPML T.I.G.E.R. 6.56 264.91
Morgan Stanley Growth 7.95 263.63
Fidelity Equity 7.36 223.80
Reliance Equity 8.22 214.63
Sundaram Energy 9.45 211.28
Reliance Vision 5.52 206.95
ICICI Pru Dynamic 12.24 204.30
-------------------------------
Other MC stories:
Nifty ends below 4300; CG, power, realty...
Markets Snapshot
Markets slide on back of weak global cues from US market, rising crude prices
Nifty closes below 4,300 for 1st time since Aug 24, '07
Sensex ends down 278 pts at 14293.3; recovers nearly 130 pts from days low
Nifty ends down 81 pts at 4266.4; recovers nearly 40 pts from days low
Nifty takes support at 4225; faces resistance at 4320 during the day
Sell-off witnessed in broader marets; CNX Midcap Index down 4%,
BSE Small-cap Index down 3.5%
RIL ends down down 3.5% at 2025.7; slips below 2000 during the day
Cap Goods under pressure; index down 5.3%; L&T down 6.5%, ABB down 4%, BHEL down 3.2%
Index losers; HIndalco down 8%, Unitech down 7.2%, Tata Comm down 6.8%, Suzlon down 6.5%
Index gainers; ONGC, HDFC up nearly 2%, HCL Tech up 1.5%, Wipro, Infy, Satyam up nearly 1%
Losers; GHCL down 10%, BOI down 9.3%, Rel Cap down 9%, Ibulls Fin down 8%, JP Associates down 7.5%
NSE Advanve Decline at 1:10
Total market turnover at Rs 83165 cr Vs Rs 85088 cr on Friday
F&O turnover at Rs 66917 cr Vs Rs 58533 cr on Friday.
---------------------------
Stocks at life-time low
Equity CMP Issue Price 52-week high
DLF 450 525 1225
Omaxe 155 310 612
Parsvnath 143.7 300 598
Sobha 330 640 1179
Brigade Ent 145 390 490
Kolte Patil 69.5 145 272
-------------------------------
Others stocks hittng life-time low
CBI Rel Power BPCL HPCL SpiceJet Indiabulls Sec Power Grid
F&O Snapshot
Nifty rollover at 27%, Market wide rollovber at 24%
Short covering seen on Nifty futures when index approached 4200
Nifty june futures ends at mild prem; July futures at 18 pts discount
Fresh short buildup seen in bank nifty and across most banking counters
4200 July Put add around 25% in OI; 4300 call seen most active in July series
F&O Stocks
RPL down 1.5%; add 51.5 lakh shares in OI
IFCI down 7.1%; add 49 lakh shares in July series
Suzlon down 5.7%; add 29 lakh shares in July series
JP Associates down 8.5%; add 29 lakh shares in July series
Unitech down 6.2%; add 22.5 lakh shares in July series
Ispat down 3.9%; add 45.5 lakh shares in OI
SAIL down 4%; add 20 lakh shares in OI
Rollover
Ultratech: 70% India Cement: 59% Grasim: 48%
Parsvnath: 40% HDFC Bank: 35% NTPC: 34%
DLF: 33% Unitech: 30%
-----------------------
Source: http://www.moneycontrol.com. We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information.
Results: Tata Power, Indian Hotels and etc
Tata Power Company net profit rises 24.84% in the year ended March 2008
Sales rise 25.46% to Rs 5915.91 crore
Net profit of Tata Power Company rose 24.84% to Rs 869.90 crore in the year ended March 2008 as against Rs 696.80 crore during the previous year ended March 2007. Sales rose 25.46% to Rs 5915.91 crore in the year ended March 2008 as against Rs 4715.32 crore during the previous year ended March 2007.
Indian Hotels Company net profit rises 17.08% in the year ended March 2008
Sales rise 14.39% to Rs 1764.51 crore
Net profit of Indian Hotels Company rose 17.08% to Rs 377.46 crore in the year ended March 2008 as against Rs 322.39 crore during the previous year ended March 2007. Sales rose 14.39% to Rs 1764.51 crore in the year ended March 2008 as against Rs 1542.52 crore during the previous year ended March 2007.
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Refoils and Solvent net profit rises 105.77% in the year ended March 2008
Sakuma Exports reports net loss of Rs 0.37 crore in the March 2008 quarter
Tata Power Company net profit rises 24.84% in the year ended March 2008
FCS Software Solutions net profit rises 17.96% in the March 2008 quarter
Electrosteel Castings reports net loss of Rs 20.60 crore in the March 2008 quarter
Allsec Technologies reports net loss of Rs 13.55 crore in the year ended March 2008
Banco Products India net profit rises 141.38% in the March 2008 quarter
Burnpur Cement net profit rises 24.56% in the year ended March 2008
D-Link India net profit rises 53.14% in the March 2008 quarter
MSP Steel & Power net profit rises 131.93% in the March 2008 quarter
More @ Capitalmarket.com
Source: Above site. We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information
Sales rise 25.46% to Rs 5915.91 crore
Net profit of Tata Power Company rose 24.84% to Rs 869.90 crore in the year ended March 2008 as against Rs 696.80 crore during the previous year ended March 2007. Sales rose 25.46% to Rs 5915.91 crore in the year ended March 2008 as against Rs 4715.32 crore during the previous year ended March 2007.
Indian Hotels Company net profit rises 17.08% in the year ended March 2008
Sales rise 14.39% to Rs 1764.51 crore
Net profit of Indian Hotels Company rose 17.08% to Rs 377.46 crore in the year ended March 2008 as against Rs 322.39 crore during the previous year ended March 2007. Sales rose 14.39% to Rs 1764.51 crore in the year ended March 2008 as against Rs 1542.52 crore during the previous year ended March 2007.
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Refoils and Solvent net profit rises 105.77% in the year ended March 2008
Sakuma Exports reports net loss of Rs 0.37 crore in the March 2008 quarter
Tata Power Company net profit rises 24.84% in the year ended March 2008
FCS Software Solutions net profit rises 17.96% in the March 2008 quarter
Electrosteel Castings reports net loss of Rs 20.60 crore in the March 2008 quarter
Allsec Technologies reports net loss of Rs 13.55 crore in the year ended March 2008
Banco Products India net profit rises 141.38% in the March 2008 quarter
Burnpur Cement net profit rises 24.56% in the year ended March 2008
D-Link India net profit rises 53.14% in the March 2008 quarter
MSP Steel & Power net profit rises 131.93% in the March 2008 quarter
More @ Capitalmarket.com
Source: Above site. We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information
Sensex, Nifty at 2008 New Low
Sensex tumbles once again, loses 278 pts as bears call the shots
Taking global cues, the market opened with a big negative gap and plunged deeper into the red this morning with stocks, with the exception of those from the information technology sector, recording sharp losses. And then, despite a couple of strong attempts to bounce back - it very nearly succeeded in wiping off its losses on one occasion - it ended the session on a dismal note today.
High oil prices, weak global markets, high inflation and the possibility of it resulting in some monetary tightening measures from the Reserve Bank of India, all contributed to the reluctance of investors to pick up stocks. The uncertainties on the political front also hit the sentiment to a marked extent.
The Sensex, which tanked to a low of 14,163.45 in morning trade, ended the session with a huge loss of 277.97 points or 1.91% at 14,293.32. The Nifty settled at 4266.40 with a loss of 1.87% or 81.15 points. In intra-day trades today, the Nifty hit a low of 4225.50.
Capital goods stocks were battered once again. Mirroring the sell-off in the capital goods space, the BSE CG went down by over 5% today. Heavy selling was seen in metal, power, realty, auto, pharma and bank stocks as well. Oil, PSU and FMCG scrips were not spared either. IT stocks bucked the trend and a few of them ended the session with sharp gains.
Jaiprakash Associates (down 7.95%), Hindalco (down 7.8%), Larsen & Toubro (down 6.5%), Mahindra & Mahindra (down 4.55%), Maruti Suzuki (down 5.4%), Ranbaxy Laboratories (down 5.35%), Reliance Infrastructure (down 4.75%), Reliance Industries (down 3.55%) and Tata Steel (down 4.1%) declined sharply due to heavy selling.
ACC, BHEL, DLF, Grasim Industries, ICICI Bank, ITC and State Bank of India also closed with sharp losses. ONGC, Wipro, HDFC, Hindustan Unilever, Infosys Technologies, Satyam Computer Services and Tata Motors closed with sharp gains on selective buying support. Bharti Airtel ended flat.
Tata Communications, Suzlon Energy, Unitech, Tata Power, Nalco, SAIL, ABB, Siemens, Hero Honda, Sun Pharmaceuticals, Idea Cellular, Punjab National Bank, Reliance Petroleum and Dr. Reddy's Laboratories ended sharply lower. HCL Technologies and Cairn India finished with smart gains.
Godrej Industries (down 14.4%) was the biggest loser among BSE 'A' Group stocks. Akruti City, Bank of India, Reliance Capital, Sobha Developers, United Breweries, Essar Shipping, India Bulls Financial Services, Alstom Projects, Nagarjuna Constructions, Reliance Power, HDIL, Indian Bank, Punjab Lloyd, EIH, Essar Oil, IFCI and Maytas Infra also ended with big losses. Mid and small cap stocks were mauled. So severe was the selling pressure in these segments that the Midcap and Smallcap barometers declined by around 3.5% today.
The market breadth remain extremely weak right through the session. When trade ended, out of a total of 2697 stocks that saw action on BSE, as many as 2219 stocks were down in the red. 430 stocks closed with gains and 48 stocks ended at their previous closing levels.
Other Stories:
Mukesh vs Anil: Next round of power play! /Small investors lose $50 b in market crash
RBI signals rate hike, but not yet /Saint Gobain to invest Rs 1,000 cr in Bhiwadi facility
Google is best reputed company in corporate America / Inflation for ‘aam aadmi’ is only 7.1%
MOre@ http://sify.com/finance/
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Sensex and Nifty at 2008 New Low
Week Ahead: Nifty may seek support at 4200 : BS
Week Ahead: Nifty may seek support at 4200
Inflation spiking to double-digits led to a market crash. The Nifty ended down 3.75 per cent, closing at 4347.5 points, which is a 10-month low. The Sensex was down 4.07 per cent closing at 14571. The Defty was down 3.83 per cent with the rupee dropping to 42.97.
The rupee fall was precipitated by the continuation of heavy sales from the FIIs. Domestic institutions were also sellers. Breadth signals were terrible with advances heavily outnumbered by declines. Volumes were low. The Junior was down 4.03 per cent while the BSE 500 lost 3.64 per cent.
Outlook: The Nifty is likely to seek support at around 4200 before it attempts a substantial recovery. The upside is likely to be capped by resistance at 4600-4650 level. Settlement considerations may cause extra volatility and lead to a temporary improvement on short-covering. Rationale: On Friday, the market broke key supports. This was a low-volume breakout but the minimum target projections would be about 4200. There is fairly good support at that level. Short-covering could cause some recovery during next week but the market is clearly in an intermediate downtrend (7 weeks and counting) that could get worse.
Counter-view: It would take a very strong trigger in the form of good news to lift the market now. Technically speaking, we would need a high-volume recovery that pushed the market beyond 4650 to break the pattern of an intermediate downtrend. Perhaps the nuclear deal would do it?
Bulls & Bears: Any bullishness next week is liable to arise on the basis of short covering and liable to terminate at around Thursday June 19th levels. Banks for example, have been very hard-hit and there could be candidates here.
IT is another possibility because of the falling rupee and the cushion it offers. Oil exploration is a third segment. But the vast majority of stocks have emulated the index in that they have made clear downside breakouts. Despite settlement considerations, the prudent trader would be advised to stay on the short side of the market or to stay out.
Among the most badly hit sectors are real estate, housing finance stocks, construction companies and automobiles. No surprises here since these are all rate-sensitive and driven by consumer sentiment.
Metals also did badly last week and telecom service providers also saw massive sell offs. The Reliance and ADAG groups both did badly – I suspect this is more due to excessively leveraged positions being sold off.
These are the places shorters should be focussed on. Due to settlement, you may need to carryover positions or to open them in July futures to start with.
MICRO TECHNICALS
Corporation Bank Current price: Rs 284Target price: Rs 300
The stock lost an extraordinary 10 per cent plus on Friday on very low volumes. It has pretty much fulfilled its target on a downside breakout in one freak session. There is a good possibility that it will recover on short covering till about Rs 300. keep a stop at Rs 280 and go long, cover at Rs 295-plus. If the Rs 280 stop is broken, the downside target would be Rs 270.
HOECCurrent price: Rs 127Target price: Rs 135
The stock is range-trading between Rs 125-135 and it hit the bottom end of the range on Friday before making a small recovery. It may be worth a long position on the expectation that it will go back towards the top of the range. Go long with a stop at Rs 125 and cover above Rs 134.
IFCICurrent price: Rs 50Target price: Rs 45
The stock finally made a downside breakout after several weeks of threatening to collapse. It has a target projection in the region of Rs 45 and it could exceed that given its previous history of developing powerful trends. Keep a stop at Rs 52 and go short. Cover at about Rs 46.
Naukri Current price: Rs 999Target price: Rs 1,055
One of very few stocks that held its own on Friday. In fact, it generated strong volumes along with a price-rise. There's a big resistance at the current level and all the way till Rs 1,015. However if it closes above Rs 1,015, it's likely to go till Rs 1,055. Keep a stop at Rs 990 and go long. Book partial profits at Rs 1,015.
Reliance Industries Current price: Rs 2,099Target price: Rs 2,025
RIL smashed a key support at Rs 2,150 and dropped on heavy volumes with a high delivery ratio of 44 per cent. There is reasonable support at Rs 2,070 but there is also a target of Rs 2,025. In the circumstances, that target is likely to be fulfilled. RIL may swing between Rs 2,025-2,150 in the next four sessions. Keep a stop at Rs 2,125 and go short, covering at Rs 2,025.
(The target price and projected movements given above are in terms of the next five trading sessions unless otherwise stated.)
Source: http://www.business-standard.com. We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information
Inflation spiking to double-digits led to a market crash. The Nifty ended down 3.75 per cent, closing at 4347.5 points, which is a 10-month low. The Sensex was down 4.07 per cent closing at 14571. The Defty was down 3.83 per cent with the rupee dropping to 42.97.
The rupee fall was precipitated by the continuation of heavy sales from the FIIs. Domestic institutions were also sellers. Breadth signals were terrible with advances heavily outnumbered by declines. Volumes were low. The Junior was down 4.03 per cent while the BSE 500 lost 3.64 per cent.
Outlook: The Nifty is likely to seek support at around 4200 before it attempts a substantial recovery. The upside is likely to be capped by resistance at 4600-4650 level. Settlement considerations may cause extra volatility and lead to a temporary improvement on short-covering. Rationale: On Friday, the market broke key supports. This was a low-volume breakout but the minimum target projections would be about 4200. There is fairly good support at that level. Short-covering could cause some recovery during next week but the market is clearly in an intermediate downtrend (7 weeks and counting) that could get worse.
Counter-view: It would take a very strong trigger in the form of good news to lift the market now. Technically speaking, we would need a high-volume recovery that pushed the market beyond 4650 to break the pattern of an intermediate downtrend. Perhaps the nuclear deal would do it?
Bulls & Bears: Any bullishness next week is liable to arise on the basis of short covering and liable to terminate at around Thursday June 19th levels. Banks for example, have been very hard-hit and there could be candidates here.
IT is another possibility because of the falling rupee and the cushion it offers. Oil exploration is a third segment. But the vast majority of stocks have emulated the index in that they have made clear downside breakouts. Despite settlement considerations, the prudent trader would be advised to stay on the short side of the market or to stay out.
Among the most badly hit sectors are real estate, housing finance stocks, construction companies and automobiles. No surprises here since these are all rate-sensitive and driven by consumer sentiment.
Metals also did badly last week and telecom service providers also saw massive sell offs. The Reliance and ADAG groups both did badly – I suspect this is more due to excessively leveraged positions being sold off.
These are the places shorters should be focussed on. Due to settlement, you may need to carryover positions or to open them in July futures to start with.
MICRO TECHNICALS
Corporation Bank Current price: Rs 284Target price: Rs 300
The stock lost an extraordinary 10 per cent plus on Friday on very low volumes. It has pretty much fulfilled its target on a downside breakout in one freak session. There is a good possibility that it will recover on short covering till about Rs 300. keep a stop at Rs 280 and go long, cover at Rs 295-plus. If the Rs 280 stop is broken, the downside target would be Rs 270.
HOECCurrent price: Rs 127Target price: Rs 135
The stock is range-trading between Rs 125-135 and it hit the bottom end of the range on Friday before making a small recovery. It may be worth a long position on the expectation that it will go back towards the top of the range. Go long with a stop at Rs 125 and cover above Rs 134.
IFCICurrent price: Rs 50Target price: Rs 45
The stock finally made a downside breakout after several weeks of threatening to collapse. It has a target projection in the region of Rs 45 and it could exceed that given its previous history of developing powerful trends. Keep a stop at Rs 52 and go short. Cover at about Rs 46.
Naukri Current price: Rs 999Target price: Rs 1,055
One of very few stocks that held its own on Friday. In fact, it generated strong volumes along with a price-rise. There's a big resistance at the current level and all the way till Rs 1,015. However if it closes above Rs 1,015, it's likely to go till Rs 1,055. Keep a stop at Rs 990 and go long. Book partial profits at Rs 1,015.
Reliance Industries Current price: Rs 2,099Target price: Rs 2,025
RIL smashed a key support at Rs 2,150 and dropped on heavy volumes with a high delivery ratio of 44 per cent. There is reasonable support at Rs 2,070 but there is also a target of Rs 2,025. In the circumstances, that target is likely to be fulfilled. RIL may swing between Rs 2,025-2,150 in the next four sessions. Keep a stop at Rs 2,125 and go short, covering at Rs 2,025.
(The target price and projected movements given above are in terms of the next five trading sessions unless otherwise stated.)
Source: http://www.business-standard.com. We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information
Market to remain under bear hug: Experts
Retail investors lose $50bn on sensex
Market to remain under bear hug: Experts
Dalal Street is likely to face another turbulent period this week amid inflationary concerns, negative global cues and fears of political uncertainty in the country, analysts say.
Market analysts believe that the surge in inflation to a 13-year high of 11.05 per cent could lead to a sharp selling bout at the bourses this week which could propel the benchmark index into a downward frenzy.
"With inflation hitting double-digit mark on Friday, investors will get enough time over the weekend to think and are most definitely going to be on a selling spree this week... be prepared for what I call a 'pre-meditated murder' on Monday," Arun Kejriwal director of Kejriwal Research and Investment Services (KRIS) said.
The benchmark index Sensex which had closed at its lowest level in 2008 at 14,571.29 on Friday, lost over 800 points during the week. Besides, the 50-share Nifty index had settled down 156 points at 4,347.55 on the National Stock Exchange.
Economists believe that it is unlikely that inflation would fall below the 8 per cent level till this year end.
"While 11 per cent headline WPI number were unexpectedly high, the market was well aware that inflation in June is likely to trend upwards and remain high for several weeks.
"A correction in global commodity prices as well as a good monsoon could bring relief over the next quarter, we do not expect inflation to fall too far below 8 per cent until end December," Reliance Capital Chief Economist Atsi Sheth said.
Monetary tightening as well as sporadic fiscal measures are likely to be announced over the coming weeks. It is important to remember that inflation currently is a global concern and that there is no magic bullet to deal with it, Sheth added.
The quarterly monetary policy review of RBI is scheduled on July 29, but analysts said that the Central Bank is expected to take a call much earlier with inflation hitting the roof.
Reserve Bank of India had on June 11, hiked repo rate by 25 basis points to 8 per cent with immediate effect in an effort to contain rising inflation.
However, concerns remain that a further hike in rates would impact bottom line of Indian companies, while high interest rates may delay expansion plans of corporates, which in turn may impact future earnings growth.
Besides, analysts said that the sustained selling by foreign funds would further weigh heavily on the sentiment of the investors in the near term.
"Inflationary concerns and negative cues from the world markets are likely to keep the bourses under pressure this week. However, we expect some support to come in at lower levels by the middle of the week," domestic brokerage firm SMC Global Vice President Rajesh Jain said.
Foreign Institutional Investors have been net sellers in equities to the tune of Rs 7,125.20 crore so far in June, while in the 2008 till now they have made sales worth Rs 22,494.60 crore.
However, domestic mutual funds were net buyers of shares to the tune of Rs 1,919.90 crore in June so far.
Meanwhile, expectations of good first quarter results may trigger a recovery from lower level after the steep fall in share prices, marketmen said.
Source: http://www.utvi.com. We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information
Market to remain under bear hug: Experts
Dalal Street is likely to face another turbulent period this week amid inflationary concerns, negative global cues and fears of political uncertainty in the country, analysts say.
Market analysts believe that the surge in inflation to a 13-year high of 11.05 per cent could lead to a sharp selling bout at the bourses this week which could propel the benchmark index into a downward frenzy.
"With inflation hitting double-digit mark on Friday, investors will get enough time over the weekend to think and are most definitely going to be on a selling spree this week... be prepared for what I call a 'pre-meditated murder' on Monday," Arun Kejriwal director of Kejriwal Research and Investment Services (KRIS) said.
The benchmark index Sensex which had closed at its lowest level in 2008 at 14,571.29 on Friday, lost over 800 points during the week. Besides, the 50-share Nifty index had settled down 156 points at 4,347.55 on the National Stock Exchange.
Economists believe that it is unlikely that inflation would fall below the 8 per cent level till this year end.
"While 11 per cent headline WPI number were unexpectedly high, the market was well aware that inflation in June is likely to trend upwards and remain high for several weeks.
"A correction in global commodity prices as well as a good monsoon could bring relief over the next quarter, we do not expect inflation to fall too far below 8 per cent until end December," Reliance Capital Chief Economist Atsi Sheth said.
Monetary tightening as well as sporadic fiscal measures are likely to be announced over the coming weeks. It is important to remember that inflation currently is a global concern and that there is no magic bullet to deal with it, Sheth added.
The quarterly monetary policy review of RBI is scheduled on July 29, but analysts said that the Central Bank is expected to take a call much earlier with inflation hitting the roof.
Reserve Bank of India had on June 11, hiked repo rate by 25 basis points to 8 per cent with immediate effect in an effort to contain rising inflation.
However, concerns remain that a further hike in rates would impact bottom line of Indian companies, while high interest rates may delay expansion plans of corporates, which in turn may impact future earnings growth.
Besides, analysts said that the sustained selling by foreign funds would further weigh heavily on the sentiment of the investors in the near term.
"Inflationary concerns and negative cues from the world markets are likely to keep the bourses under pressure this week. However, we expect some support to come in at lower levels by the middle of the week," domestic brokerage firm SMC Global Vice President Rajesh Jain said.
Foreign Institutional Investors have been net sellers in equities to the tune of Rs 7,125.20 crore so far in June, while in the 2008 till now they have made sales worth Rs 22,494.60 crore.
However, domestic mutual funds were net buyers of shares to the tune of Rs 1,919.90 crore in June so far.
Meanwhile, expectations of good first quarter results may trigger a recovery from lower level after the steep fall in share prices, marketmen said.
Source: http://www.utvi.com. We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information
21 June 2008
Inflation touches double digit at 11.05% : ET
Inflation touches double digit at 11.05%
NEW DELHI: Surging food and fuel prices further pushed up inflation to 11.05 per cent for the week ended June 7, 2008 from 8.75 per cent in the previous week. A day earlier, a poll estimated the annual inflation rate to have jumped to 13-year highs near 10 per cent in early June, powered by a fuel price rise. The wholesale price index is forecast to have risen to 9.82 per cent in the 12 months to June 7, which would be the highest since June 3, 1995, when annual inflation was at 9.89 per cent.
The forecasts from 12 analysts ranged widely from 9.63 per cent to 10.62 per cent, and compared with an annual rise of 8.75 per cent in the previous week. Four economists in the poll estimated the data to come in at above 10 per cent, its first double-digit reading since May 27, 1995. It would be the 17th consecutive week that inflation rate has been above 5.5 per cent, the central bank’s target by the end of the fiscal year in March 2009. India had raised state-set fuel prices by about 10 per cent on June 4, and the RBI last week raised its key lending rate for the first time in more than a year to contain inflation expectations.
Fuel price hike led to double digit inflation: Chidambaram
India losing steam on growth front?
Inflation management goes beyond govt's hands: Industry
Double digit inflation is here to stay: KV Kamath
Inflation woes: Food management may be key
Inflation may not affect growth story
Rising inflation dampening consumer sentiments
Runaway inflation to hit India Inc's growth plans
Inflation takes a hit on leisure, entertainment business
At 11%, inflation hits 13-year high
Inflation needn't pull down stocks always
Lowest Sensex close since Aug '07 as inflation hits 11%
Source: http://economictimes.indiatimes.com. We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information
NEW DELHI: Surging food and fuel prices further pushed up inflation to 11.05 per cent for the week ended June 7, 2008 from 8.75 per cent in the previous week. A day earlier, a poll estimated the annual inflation rate to have jumped to 13-year highs near 10 per cent in early June, powered by a fuel price rise. The wholesale price index is forecast to have risen to 9.82 per cent in the 12 months to June 7, which would be the highest since June 3, 1995, when annual inflation was at 9.89 per cent.
The forecasts from 12 analysts ranged widely from 9.63 per cent to 10.62 per cent, and compared with an annual rise of 8.75 per cent in the previous week. Four economists in the poll estimated the data to come in at above 10 per cent, its first double-digit reading since May 27, 1995. It would be the 17th consecutive week that inflation rate has been above 5.5 per cent, the central bank’s target by the end of the fiscal year in March 2009. India had raised state-set fuel prices by about 10 per cent on June 4, and the RBI last week raised its key lending rate for the first time in more than a year to contain inflation expectations.
Fuel price hike led to double digit inflation: Chidambaram
India losing steam on growth front?
Inflation management goes beyond govt's hands: Industry
Double digit inflation is here to stay: KV Kamath
Inflation woes: Food management may be key
Inflation may not affect growth story
Rising inflation dampening consumer sentiments
Runaway inflation to hit India Inc's growth plans
Inflation takes a hit on leisure, entertainment business
At 11%, inflation hits 13-year high
Inflation needn't pull down stocks always
Lowest Sensex close since Aug '07 as inflation hits 11%
Source: http://economictimes.indiatimes.com. We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information
11% inflation spreads panic; Sensex down 3.3% : ET
11% inflation spreads panic; Sensex down 3.3%
It was one of the worst days for the stock market since beginning of 2008. Higher than expected inflation figures saw investors pressing sell button. ( Watch ) More than 6.5 per cent fall in Reliance Industries followed by 4.5 per cent decline in Bharti Airtel saw the Sensex close at 14590.16, down 498 points or 3.30 per cent. The 30-share index fell around 700 points from high of 15,202.01 to a low of 14,519.27. National Stock Exchange’s Nifty ended at 4355.45, down 149 points or 3.30 per cent. The broad index touched a high of 4532 and low of 4333.60.
Tier II and III stocks were not spared in selling spree. BSE Midcap Index ended at 6,051.13, down 2.87 per cent and BSE Small cap Index closed at 7,418.05, down 3.16 per cent. ONGC (up 2.61%) and Mahindra & Mahindra (1.14%) were the only gainers in the 30-share index. Reliance Communications (down 6.65%), Reliance Industries (6.61%), Hindalco Industries (6.37%), Jaiprakash Associates (6.03%), Reliance Infrastructure (4.92%) and Bharti Airtel (4.76%) were under pressure. Market breadth was extremely weak with 2239 declines outnumbering 458 advances on BSE. Inflation rate touched a 13-year high of 11.05 percent for the week ended June 7 from 8.5 per cent in the previous week. Market was expecting it to be around 10.6 per cent. (All figures are provisional)
---------------------------------
Lowest Sensex close since Aug '07 as inflation hits 11%
It was a downhill journey for Indian equities on Friday as inflation shot hit a 13-year high, raising fears over economic growth and sparked panic selling across the board. Bombay Stock Exchange's Sensex settled at its lowest close since August 2007 at 14,571.29, down 516.70 points or 3.42 per cent from Thursday’s close. The index slumped to an intra-day low of 14,519.27 from a high of 15,202.01. The wider National Stock Exchange’s Nifty dropped 156.7 points or 3.48 per cent to 4347.55, breaching a crucial resistance level of 4,400. “High inflation and pessimism on the political front weighed on the market. Sensex had never closed below 14,800 since the January fall, which happened today. All the supports are broken.
We are likely to see more downside hereon. Investors should wait and watch as market will look for new bottoms and every rise should be used to exit long positions," said Rakesh Gandhi, technical analyst at Latin Manharlal Securities. The market opened on a buoyant note cheering a fall in crude oil prices and tracking positive global cues. However, the indices had to surrender all early gains after data showed inflation had shot up to 11.05 per cent in the 12 months to June 7, following the rise in state-set fuel prices. This was a big jump from 8.75 per cent a week-earlier. Even as the market plunged, Finance Minister P Chidambaram warned of stronger anti-inflation measures ahead. Though he did not elaborate on the measures being contemplated, expectations are that the Reserve Bank of India may resort to further tightening--a move that could lead to increase in lending rates for auto, housing and consumer loans.
This pressured interest rate sensitive stocks, sending the BSE Bankex, BSE Auto and BSE Realty indices on a downward spiral. Selling continued unabated in second line stocks as well. BSE Midcap and Smallcap indices ended 3.17 per cent and 3.43 per cent lower respectively. The oil & gas space was the biggest loser, after investors dumped shares of Reliance Industries. The index heavyweight fell 6.6 per cent to Rs 2,096.60, its lowest close in nine months. The other frontline counters that took a knock included Reliance Communications (down 6.65%), Hindalco Industries (6.37%), Jaiprakash Associates (6.03%), Reliance Infrastructure (4.92%) and Bharti Airtel (4.76%). ONGC (up 1.56%) was the lone gainer in the 30-share index. Market breadth was extremely weak with 2,247 declines and 450 advances on BSE. Meanwhile, stocks in Europe declined led by commodity producers as investors speculated the economic slowdown would curb demand for metals. The FTSE was down 1.03 per cent, DAX 30 lost 1.4 per cent and CAC 40 shed 1.29 per cent. In the Asia Pacific region, however, it was a mixed picture. The Nikkei ended 1.33 per cent lower, Hang Seng fell 0.23 per cent while Straits Times added 0.31 per cent and CSI 300 Index rose 2.61 per cent.
------------------------------------------
Sensex tumbles to year's low
Dalal Street panics; indices fall
The pain may be far from over. The double-digit inflation data which rattled investors, could just be the trigger to send the market tumbling even further. And this horror movie could have many scenes left. The full force of oil prices, farm loan waiver, fertiliser bill and pay commission is yet to be felt. On Friday, 11% inflation unnerved the stock market, and pushed key indices like the Sensex and Nifty to their lows of 2008. Analysts feel that with global crude oil and commodity prices ruling high and no major correction expected in the near future, inflation continues to cast shadows on the market. “Today, the policy options before the government are limited. And, for the market, there may be more pain left. There is still no valuation comfort for Sensex stocks,” said Brics Securities head of equities Anand Tandon. If a phase of high inflation and high interest rate continues, a slowdown in GDP would no longer remain an academic debate, according to analysts. Jolted by the shock news on inflation, Sensex tumbled 517 points, or 3.4%, to close at 14,571 points, while the broad-based Nifty slipped 157 points, or 3.5%, to end at 4,348 points. With this, the two indices have touched their 10-month lows.
Investor wealth eroded by Rs 1.6 lakh crore on Friday, bringing total wealth erosion since January to Rs 26.6 lakh crore. Since January, foreign institutional investors (FIIs) have sold heavily, pulling out a total of Rs 24,000 crore. At 5%, BSE’s oil and gas index was the worst-hit sectoral index, followed by real estate and metal indices, which fell 4.5% and 4% respectively. Rate-sensitive sectors like real estate and banking also took a beating on fears of possible monetary tightening by RBI. The inflation data spooked many analysts who were expecting a more modest 10%.
It is felt that RBI may go for another hike in interest rates and cash reserve ratio to bring down inflation. “Government finances have gone haywire because of soaring crude oil prices, forcing the Centre to hike fuel prices. The government appears concerned about the rising inflation and may take some measures to check it. Interest rates may go up, which in turn, will put pressure on corporate earnings,” said KR Choksey Shares and Securities chairman Kisan Choksey. Some brokers feel that the market is worried about a possible earnings slowdown and next year’s general elections. One has to see how the UPA government tackles various sensitive issues, particularly inflation, which will be key to its electoral performance, said a broker.
Call writing at 4500 caps upside, realty & banking drag
Source: http://economictimes.indiatimes.com. We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information
It was one of the worst days for the stock market since beginning of 2008. Higher than expected inflation figures saw investors pressing sell button. ( Watch ) More than 6.5 per cent fall in Reliance Industries followed by 4.5 per cent decline in Bharti Airtel saw the Sensex close at 14590.16, down 498 points or 3.30 per cent. The 30-share index fell around 700 points from high of 15,202.01 to a low of 14,519.27. National Stock Exchange’s Nifty ended at 4355.45, down 149 points or 3.30 per cent. The broad index touched a high of 4532 and low of 4333.60.
Tier II and III stocks were not spared in selling spree. BSE Midcap Index ended at 6,051.13, down 2.87 per cent and BSE Small cap Index closed at 7,418.05, down 3.16 per cent. ONGC (up 2.61%) and Mahindra & Mahindra (1.14%) were the only gainers in the 30-share index. Reliance Communications (down 6.65%), Reliance Industries (6.61%), Hindalco Industries (6.37%), Jaiprakash Associates (6.03%), Reliance Infrastructure (4.92%) and Bharti Airtel (4.76%) were under pressure. Market breadth was extremely weak with 2239 declines outnumbering 458 advances on BSE. Inflation rate touched a 13-year high of 11.05 percent for the week ended June 7 from 8.5 per cent in the previous week. Market was expecting it to be around 10.6 per cent. (All figures are provisional)
---------------------------------
Lowest Sensex close since Aug '07 as inflation hits 11%
It was a downhill journey for Indian equities on Friday as inflation shot hit a 13-year high, raising fears over economic growth and sparked panic selling across the board. Bombay Stock Exchange's Sensex settled at its lowest close since August 2007 at 14,571.29, down 516.70 points or 3.42 per cent from Thursday’s close. The index slumped to an intra-day low of 14,519.27 from a high of 15,202.01. The wider National Stock Exchange’s Nifty dropped 156.7 points or 3.48 per cent to 4347.55, breaching a crucial resistance level of 4,400. “High inflation and pessimism on the political front weighed on the market. Sensex had never closed below 14,800 since the January fall, which happened today. All the supports are broken.
We are likely to see more downside hereon. Investors should wait and watch as market will look for new bottoms and every rise should be used to exit long positions," said Rakesh Gandhi, technical analyst at Latin Manharlal Securities. The market opened on a buoyant note cheering a fall in crude oil prices and tracking positive global cues. However, the indices had to surrender all early gains after data showed inflation had shot up to 11.05 per cent in the 12 months to June 7, following the rise in state-set fuel prices. This was a big jump from 8.75 per cent a week-earlier. Even as the market plunged, Finance Minister P Chidambaram warned of stronger anti-inflation measures ahead. Though he did not elaborate on the measures being contemplated, expectations are that the Reserve Bank of India may resort to further tightening--a move that could lead to increase in lending rates for auto, housing and consumer loans.
This pressured interest rate sensitive stocks, sending the BSE Bankex, BSE Auto and BSE Realty indices on a downward spiral. Selling continued unabated in second line stocks as well. BSE Midcap and Smallcap indices ended 3.17 per cent and 3.43 per cent lower respectively. The oil & gas space was the biggest loser, after investors dumped shares of Reliance Industries. The index heavyweight fell 6.6 per cent to Rs 2,096.60, its lowest close in nine months. The other frontline counters that took a knock included Reliance Communications (down 6.65%), Hindalco Industries (6.37%), Jaiprakash Associates (6.03%), Reliance Infrastructure (4.92%) and Bharti Airtel (4.76%). ONGC (up 1.56%) was the lone gainer in the 30-share index. Market breadth was extremely weak with 2,247 declines and 450 advances on BSE. Meanwhile, stocks in Europe declined led by commodity producers as investors speculated the economic slowdown would curb demand for metals. The FTSE was down 1.03 per cent, DAX 30 lost 1.4 per cent and CAC 40 shed 1.29 per cent. In the Asia Pacific region, however, it was a mixed picture. The Nikkei ended 1.33 per cent lower, Hang Seng fell 0.23 per cent while Straits Times added 0.31 per cent and CSI 300 Index rose 2.61 per cent.
------------------------------------------
Sensex tumbles to year's low
Dalal Street panics; indices fall
The pain may be far from over. The double-digit inflation data which rattled investors, could just be the trigger to send the market tumbling even further. And this horror movie could have many scenes left. The full force of oil prices, farm loan waiver, fertiliser bill and pay commission is yet to be felt. On Friday, 11% inflation unnerved the stock market, and pushed key indices like the Sensex and Nifty to their lows of 2008. Analysts feel that with global crude oil and commodity prices ruling high and no major correction expected in the near future, inflation continues to cast shadows on the market. “Today, the policy options before the government are limited. And, for the market, there may be more pain left. There is still no valuation comfort for Sensex stocks,” said Brics Securities head of equities Anand Tandon. If a phase of high inflation and high interest rate continues, a slowdown in GDP would no longer remain an academic debate, according to analysts. Jolted by the shock news on inflation, Sensex tumbled 517 points, or 3.4%, to close at 14,571 points, while the broad-based Nifty slipped 157 points, or 3.5%, to end at 4,348 points. With this, the two indices have touched their 10-month lows.
Investor wealth eroded by Rs 1.6 lakh crore on Friday, bringing total wealth erosion since January to Rs 26.6 lakh crore. Since January, foreign institutional investors (FIIs) have sold heavily, pulling out a total of Rs 24,000 crore. At 5%, BSE’s oil and gas index was the worst-hit sectoral index, followed by real estate and metal indices, which fell 4.5% and 4% respectively. Rate-sensitive sectors like real estate and banking also took a beating on fears of possible monetary tightening by RBI. The inflation data spooked many analysts who were expecting a more modest 10%.
It is felt that RBI may go for another hike in interest rates and cash reserve ratio to bring down inflation. “Government finances have gone haywire because of soaring crude oil prices, forcing the Centre to hike fuel prices. The government appears concerned about the rising inflation and may take some measures to check it. Interest rates may go up, which in turn, will put pressure on corporate earnings,” said KR Choksey Shares and Securities chairman Kisan Choksey. Some brokers feel that the market is worried about a possible earnings slowdown and next year’s general elections. One has to see how the UPA government tackles various sensitive issues, particularly inflation, which will be key to its electoral performance, said a broker.
Call writing at 4500 caps upside, realty & banking drag
Source: http://economictimes.indiatimes.com. We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information
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