Equity Research Morning Report By Mansukh 7-April-2011

MARKET INSIGHT

On Wednesday 06April 2011,the local bourses tracking the surge of the regional counterparts rose to their highest level in three months at the onset of trading session but soon after slipped in negative territory as the investor's appeared reluctant in building up position and rather preffered trimming them, perturbed by the fears of another rate hike to curb the growth threatening inflation. Though the indices recovered some part of losses after touching intraday lows in the mid morning session as rally in real estate majors like Unitech and HDIL which garnered around six percentage points each lent some support leading the local bourses scillate around the neutral line but the trade got bitter approaching the closing bell as the cuts got deeper and bears got more active thereby dominating the BSE Sectoral space , leading to the 30 share index--Sensexclose the trading session with loss of over 50 points.The stocks that gained major traction in today's trading session were Sesa Goa, NTPC.  Sesa Goa has been on gaining spree ever since Supreme Court lifted its ban on iron ore exports from Karnataka. Sesa Goa had curbed its iron ore mining in Karnataka post the state government's ban on iron ore World Indices %Chg exports, as the company's iron ore realizations were significantly lower in the domestic market compared to the international market.

The BSE Sensex lost 74.62 points or 0.38% to settle at 19,612.20. The index touched a high and a low of 19,811.14 and 19,550.55 respectively. 10 stocks advanced against 20 declining one's on the index. The BSE Mid-cap and Small-cap indices settled with gains of 0.47% and 0.78 %, respectively. On the BSE sectoral front, Realty up 3.18%, CD up 1.11%, Power up 0.73%, PSU up 0.56% and Auto up 0.26% were the top gainers. On the flip side, Teck down 0.84%, IT down 0.69%, Bankex down 0.43%, Metal down 0.41% and CG down 0.11% were the top losers. (Provisional).

India VIX, a gauge for market's short term expectation of volatility gained 2.31% at 20.36 from its previous close of 19.90 on Tuesday. The S&P CNX Nifty lost 18.30 points or 0.31% at 5,891.75. The index touched high and low of 5,944.45 and 5,868.80, respectively.22 stocks advanced against 28 declining ones on the index. (Provisional)

Most of the Asian equity indices finished the day's trade in the positive terrain on Wednesday, led by Chinese Shanghai Composite, which surged more than one percent in the trade today and breached its crucial 3,000 point mark as investors shrugged off fourth interest rate hike since October. The People's Bank of China on Tuesday raised interest rates by 25 basis points. However Japanese Nikkei edged lower on Wednesday on increasing worries over mounting production losses for quake-hit manufacturers and Seoul shares too declined in today's trade, led by falls in technology and banking stocks,.