Food inflation declines to 11.05% for week-ended Feb 5
SAIL plans to set up 3 million MT per annum plant in Mongolia
Infosys comes up with it first software development block in Kerala
GOI plans to infuse Rs 539 crore in Dena Bank
GOI plans to infuse Rs 940 crore in Tier I capital of UCO Bank
Aventis Pharma's Q3 net profit up 303.46%
India proposes $9 bn fund for freight corridor in partnership with Japan.
India-Japan trade to hit $25 billion following the FTA
MARKET INDISE
On Thursday 17 Feb 10, 2011, The domestic equity markets broke its consolidation mood on Thursday on the back of firm trend in Asian markets and a prominent decline in food inflation which impelled investors to indulge in some brisk buying thereby offsetting the sour sentiment prevailing over the concerns of slowdown in economic growth, decline in corporate earnings and impact of 2G spectrum scam on the Indian political scene. Besides large cap stocks, several stocks from midcap and small cap sections, with impressive gains too contributed to the up move of the equity markets. Decline in Inflation coupled with the gains in the stocks from Capital Goods, Bankex, Fast Moving Consumer Goods, Auto and TECk sectors prompted the benchmark indices to surge erasing the signs of fatigue witnessed in the morning session of trade.
The BSE Sensex gained 205.92 points or 1.13% to settle at 18,506.82 and 50 share index--Nifty on NSE closed up 64.75 points or 1.18% to 5546.45. The BSE Mid-cap and Small-cap indices settled with the gains of 0.91% and 0.94%, respectively. In the BSE sectoral space, barring Realty sector which was down by 0.89%, all the sectoral indices finished in green.Leading the gainers pack were Capital Goods (CG) up 1.93%, Bankex up 1.50 %, Fast Moving Consumer Goods (FMCG) up by 0.80%, Auto up 1% and TECk up 0.74% were the major gainers.
European markets were trading in the green. FTSE declined 0.08%, CAC-40 slid 0.09% and DAX dropped 0.04%. Most of the Asian markets closed the session on a positive note, however the start was sluggish and some indices remained in negative terrain throughout the day but others managed a good closing with Japan's Nikkei stock average rising for a fourth straight session on Thursday to around ten month high. Good earnings announcement across the globe has boosted the sentiments of the regional markets too. The Hong Kong and the Chinese markets ended in green as the traders welcomed the US Federal Reserve's decision to raise its growth forecast for the world's biggest economy. However the property stocks in China came in somber mood after the Beijing city government unveiled new limits on home purchases in the capital.
Meanwhile, food inflation in the country eased significantly over the week-ended Feb 5, maintaining its sharp downward trajectory for second consecutive week. Overall trend in the food inflation however continues to remain volatile though the strong Rabi harvest expected this year should help the pace of rising prices in this space to come down in coming weeks. According to the data released by the ministry of commerce and industry on Thursday, food price index rose 11.05% on annual basis during week-ended Feb 5, significantly slower compared with 13.07% recorded in the previous week. On a sequential or week-on-week basis, the index for food goods decreased by 2.14% to 182.9 from 186.9 for the previous week, mainly due to lower prices of fruits & vegetables (8%) and pulses (1%). This was second consecutive sharp decline in food prices index, indicating that supply side scenario was improving.
MARKET OUTLOOK- CAUTIOUSLY OPTIMISTIC
