SNAPSHOT
The markets finished the last trading day of the week on a disappointing note after the RBI hiked its key policy rates a day before. Sentiments remained subdued as investors feared that more rate hikes are on cards as RBI battles spiraling inflationary pressures which threatens to derail the robust growth of Indian economy. February inflation quickened to annual 8.31% versus 8.23% in January, thereafter RBI's eighth hike in benchmark interest rates since March 2010 by 25 basis points came to the fore followed by the hike in forecast of inflation for the current fiscal year to around 8% from its previous estimate of 7% as RBI expected that economic growth will be impacted from surging global commodity prices, especially crude oil prices. Meanwhile, marginal decline in weekly food inflation numbers to a three-and-a-halfmonth low of 9.42% for the week ended March 5 failed to enthuse the investor sentiment. The gloomy reports from the political front too did no good to the local sentiments as the opposition demanded resignation of Indian Prime Minister following a wikileaks cable showing bribes had been given by the ruling UPA government members for votes during a no-confidence motion after the Indo-US nuclear treaty. The benchmarks eventually settled with losses of over one and half a percent after infringing crucial support levels.
WEEK GONE BY
The Bombay Stock Exchange (BSE) Sensex tumbled by 295.28 points or 1.62% to 17,878.81 during the week ended March 18, 2011. The BSE Mid-cap index decreased 0.30% to 6,509.68 and the Small-cap index shed 1.29% to 7,797.80. Most of the sectoral indices on the BSE were in the negative terrain; Auto was down 282.33 points or 3.22% to 8,485.30, FMCG down by 95.99 points or 2.75% to 3,395.84, IT own 150.01 points or 2.44 to 5,999.97, Realty down by 50.45 points or 2.40% to 2,053.23 and TECk down by 66.84 points or 1.86% to 3,530.74, were the major losers on the index while CD up by 59.58 points or 1.04 % to 5,774.83 was the only gainer on the BSE. The S&P CNX Nifty tumbled 71.75 points or 1.32% to 5,373.7. On the National Stock Exchange (NSE), CNX IT trimmed 2.52% to 6552.60, CNX Nifty Junior shed 0.72% to 10,616.60, Bank Nifty declined by 0.23% to 10,715.90 and CNX Mid-cap lost 0.18 % to 7,592.25. Food inflation in the country eased marginally over the week-ended March 5. According to the data released by the ministry of commerce and industry, food price index rose 9.42% on annual basis during week-ended March 5, marginally lower compared with 9.52% recorded in the previous week.
WEEK AHEAD
The investor's in the coming week will be eyeing the much awaited reform in indirect taxation system which may be via implementation of GST which has already missed two deadlines. The government after getting the Cabinet clearance is likely to table the Goods and Services Tax (GST) Constitution Amendment Bill before Parliament in the next 4-5 days .The Cabinet on March 15, 2011 approved the Constitution Amendment Bill to pave the way for implementation of GST, a new indirect tax regime that will subsume various levies such as excise and service tax. On the global front, the investor's will be eying lots of major economic data from the US, starting with Existing Home Sales on March 21, 2011,followed by New Home Sales data, Durable Goods Orders data, Jobless Claims data and finally the GDP data on March 25,2011. During the week, S&P CNX Nifty touched the highest level of 5537.30 on March 14, 2011 and the lowest point of 5366.40 on March 18, 2010. On the last trading day, the Nifty closed at 5373.70, with a weekly decline of 93.30 points or 1.68%. Hence for the coming week 5310 followed by 5240 are likely to be good support levels for the Nifty, while the index may face some resistance at 5490 and 5612 levels. HAPPY TRADING…..
The investor's in the coming week will be eyeing the much awaited reform in indirect taxation system which may be via implementation of GST which has already missed two deadlines. The government after getting the Cabinet clearance is likely to table the Goods and Services Tax (GST) Constitution Amendment Bill before Parliament in the next 4-5 days .The Cabinet on March 15, 2011 approved the Constitution Amendment Bill to pave the way for implementation of GST, a new indirect tax regime that will subsume various levies such as excise and service tax. On the global front, the investor's will be eying lots of major economic data from the US, starting with Existing Home Sales on March 21, 2011,followed by New Home Sales data, Durable Goods Orders data, Jobless Claims data and finally the GDP data on March 25,2011. During the week, S&P CNX Nifty touched the highest level of 5537.30 on March 14, 2011 and the lowest point of 5366.40 on March 18, 2010. On the last trading day, the Nifty closed at 5373.70, with a weekly decline of 93.30 points or 1.68%. Hence for the coming week 5310 followed by 5240 are likely to be good support levels for the Nifty, while the index may face some resistance at 5490 and 5612 levels. HAPPY TRADING…..
