FIRST LIGHT HEADINGS
Rising input costs may push FMCG firms to go for another round of price hike
FIIs stood as net sellers in equities on April 28, 2011: SEBI
Transformers And Rectifiers (India) receives Best Equipment Supplier Award 2010-2011
Sasken Communication inks pact with Qualcomm to set up Authorized Test Lab
RBI releases discussion paper on saving rate deregulation
Vijaya Bank’s Q4 net profit declines 59%
MARKET INSIGHT
On Thursday 28April 2011,Local Equity markets witnessed choppy session of trade due to expiry of futures & options (F&O) April series. Lack of guidance from Global equities and mixed bag of Corporate Earning failed to lend any support to benchmark Indices which extended its losing streak for the fourth day. However, the day was fully packed with action. Apart from earnings, drabble in stocks related to 2G Scam punctured the momentum of the local equity markets. Shares of Unitech and DB Realty slumped 7.05% and 4.65% respectively on investor worries about the ongoing telecoms licencing graft case. On Wednesday, the Directorate of Enforcement filed a status report in the Supreme Court stating that properties worth Rs 2000 crore ($451 million) of two of the three companies charged in the case will be attached within two months. The report did not name the companies, however, the anticipations were the companies could be Swan Telecom, now Etisalat DB, and Unitech Wireless, which have been charged in the case along with a unit of Reliance Communication. Besides, this Food inflation which went up to 8.76% for the week ended April 16, also stoked fears of another hike in the key policy rates by the Reserve Bank in its annual policy to be announced on May 3,2011, thereby darkening the picture at Dalal Street.
The BSE Sensex offloaded 161.23 points or 0.83% and settled at 19,287.46.The index touched a high and a low of 19,542.05 and 19,265.92 respectively. 5 stocks advanced against 25 declining one's on the index. The BSE Mid-cap and Small-cap indices were down by 0.99% and 0.47% respectively. On the BSE Sectoral front, there were no gainers, while, Realty down 2.83%, Metal down 1.23%, Capital Goods down 1.14%, IT down 1.12% and Bankex down 0.93% were the top losers.
India VIX, a gauge for market's short term expectation of volatility lost 2.01 % at 20.92 from its previous close of 21.35 on Wednesday. The S&P CNX Nifty lost 50.10 points or 0.86% to settle at 5,783.80. The index touched high and low of 5,856.40 and 5,776.95, respectively. 8 stocks advanced against 42 declining ones on the index. (Provisional)
Most of the Asian indices finished in the positive terrain on Thursday after the Federal Reserve renewed its pledge to stimulate US economic growth with low interest rates and as companies posted higher earnings. Japanese Nikkei closed with a gain of more than one and half a percent to its highest level since last month quake, supported by better-than-expected domestic earnings. Moreover, Seoul shares ended on a flat note, with Hyundai Motor rallying more than 7 percent to a record closing high after its decent results announcement, but fall in technology stocks like Samsung Electronics weighed on the investors' sentiments.
According to the data released by the commerce and industry ministry on Thursday the food price index rose at 8.76% during the 12 months ending April 16, almost flat compared with a corresponding figure of 8.74% a week ago.
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