MARKET INSIGHTOn Friday 08 April 2011, on Dalal Street, benchmarks after getting soft star gained momentum tracking positive cues from strong Asian counterparts and sustained buying in key heavyweights which led the benchmark claim their crucial 19600 and 5600 level. However, markets soon reversed direction and slipped in red as rising crude oil prices aggregated inflation worries. Though the markets did recovered partial losses in the early afternoon trade but approaching the final leg it again slipped in deeper shade of red after investors' exerted hefty selling pressure across the counter. The sectors and the stocks that hogged the limelight in today's trading session include Airline, Shipping and Fast Moving Consumer Goods. Airliners traded notably lower today on worries about a possible hike in aviation fuel prices following the sharp surge in crude oil prices. Meanwhile, shipping stocks also dragged the local bourses lower, which trading lower on reports that shipping secretary has ruled out any subsidy for ship-building any time soon and the timeline for ship-building subsidy is likely to remains uncertain while it has also been reported that the proposed ship building subsidy has been cut down to 15% from 30% that includes domestic and inland vessels. The major hit among the shipping stocks were Bharati Shipyard, Shipping Corporation of India and Great Eastern Shipping Company which declined over 1% each.
The BSE Sensex slipped 135.47 points or 0.69% and settled at 19,455.71. The index touched a high and a low of 19,697.21 and 19,388.42 respectively. 5 stocks advanced against 25 declining one's on the index. The BSE Mid-cap and Small-cap indices plunged 1.28% and 1.39%, respectively. On the BSE sectoral front, FMCG up 0.89% and CG up 0.32% remained the only gainers. On the flip side, Realty down 2.49%, Auto down 1.91% and CD down 1.52%, PSU down 1.30% and Metal down 1.29% were the major losers. (Provisional)
India VIX, a gauge for market's short term expectation of volatility gained 1.08% at 20.54 from its previous close of 20.32 on Thursday. The S&P CNX Nifty declined 40.70 points or 0.69% to settle at 5,845.00. The index touched high and low of 5,926.95 and 5,822.00, respectively. (Provisional)
Most of the Asian equity indices closed the day's trade in the positive terrain on last trading day of the week led by Japanese Nikkei, which surged about two percent and closed at its highest level since the March 11 earthquake, with short-covering supported by an outperform rating for under pressured Tokyo Electric. Shares of Tokyo Electric Power Company, which owns the Fukushima plant, soared 13.5 percent. Moreover, Chinese index rose more than half a percent supported by selective buying of metal and steel companies.
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