Sunday, May 8, 2011

Possibility of bounce back couldn't be rule out...Report By Mansukh 9th-May-2011

Equity Research Report

Govt plans to award maximum projects on BOT basis this fiscal
Rupee recovers from six week low level; ends on a week note
UCO Bank aims to achieve 20% growth in this fiscal
Suven Life Sciences sued for patent infringement by Taro
Sudal Industries to expand manufacturing activities
Cadila Healthcare rises on reporting 21% rise in its FY11 net profit
KEC International reports 25% rise in its Q4 net profit

On Friday 06 May 2011,The local equity markets despite snapping the longest streak in the decade and showcasing smart bounce back in today's trading session could not undo the total losses incurred during week and settled with the weekly loss of over 3%. However, the equity markets showcased immense resilience in today's trading session despite bleak global leads after the overnight losses of the US markets; the regional counterparts too suffered deep cuts. Easing Crude Oil prices mainly healed the ailing equity markets as a record plunge in crude prices to near $100 a barrel which eased inflation worries, triggered buying across the board. Also, benchmarks witnessed a relief rally after slew of sharp correction as investors indulged in buying select beaten down stocks at attractive levels. The day's gains mainly were the contribution from the stocks belonging to the Airline like those of Jet Airways, Kingfisher which registered double digit gains. The overnight rout in commodity prices brought comfort to the stocks of this sector that has been beaten severely so far this year. While the shares of Oil marketing companies Indian Oil Corporation (IOC), up by 2.63%, Bharat Petroleum Corporation (BPCL), up by 3.62% and Hindustan Petroleum Corporation (HPCL), up by 2.83 also contributed to the up move. As a sharp fall in crude oil prices decreases under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. The stocks belonging to the Banking Counters which recovered on lower level buying mainly mitigated the losses after being battered down even since RBI hiked its key policy rates by 50 bps.

The BSE Sensex zoomed by 286.05 points or 1.57% and settled at 18,496.63. The index touched a high and a low of 18,568.48 and 18,271.68 respectively. 24 stocks advanced against 6 declining one's on the index. The Bombay Stock  Exchange Mid-cap and Small-cap indices soared high 0.92% and 0.64% respectively. On the BSE Sectoral front, Bankex up 3.61%, Auto up 2.91%, IT up 1.71%, Capital Goods up 1.33% and Realty up 1.25% was the only gainers. While there were no losers on the index.

India VIX, a gauge for market's short term expectation of volatility lost 2.91% at 20.97 from its previous close of 21.60 on Thursday. The S&P CNX Nifty added 58.90 points or 1.58% to settle at 5,546.15. The index touched high and low of 5,564.40 and 5,472.45, respectively. 40 stocks advanced against 9 declining ones while 1 remain unchanged on the index. (Provisional)

All the Asian equity indices barring Shanghai Composite finished the day's trade in the negative terrain on Tuesday as investors remained worried on renewed concerns about Japanese nuclear crisis following a number of strong aftershocks and a darkening outlook for global growth. Japanese Nikkei remained the major loser among the Asian counterparts losing more than one and half a percent in today's trade on growing worries that the impact of the March 11 earthquake may be more severe than hoped for. Other indices like Hang Seng, KLSE Composite, Seoul Composite and Taiwan Weighted too lost more than one percent, while Shanghai Composite closed flat in the trade.

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