Any correction from current level may drift indices towards 5330-5340
FIRST LIGHT HEADINGS
Haryana Govt has banned the worker’s strike at Maruti Suzuki’s Manesar plant. Tata Motors gets order for 1111 trucks from a Suratl based logistics company Allahabad Bank plans to open four overseas branches Hind Aluminium Industries has incorporated its subsidiary Mahindra Satyam has launched Mobile Couponing Platform NHPC anf GMR Energy’s Uttrakhand projects rejected by environment ministry Aurobindo Phar has received approval from the USFDA to manufacture Ramipril Capsules
MARKET INSIGHT
On Friday 10 June 2011, Local equity markets for the third straight session remained in red as lower than expected April IIP data lowered the risk appetite of the investors, thereby igniting the apprehensions of the rising cost of credit and inflation slowing the economy. The newly introduced Index of Industrial Production (IIP) with an updated base of 2004-05 starting from the month of April, registered growth at 6.3% against 7.3% in March. Meanwhile, under the old series, annual industrial output growth in April was 4.4% compared with a median forecast for 5.5%. Further slothful global leads also thwarted the sentiment of the Indian equity markets, though the US markets snapping 6 days losing streak ended higher overnight, but the lower than expected Chinese trade added to investor’s gloom. Asian shares ended mixed as Chinese trade data rekindled worries about future monetary-policy tightening moves from Beijing, though bargain-hunting helped some regional stock markets. Meanwhile, the European shares headed for sixth week of losses on persistent concerns about the pace of global economic recovery.
The BSE Sensex tanked 116.36 points or 0.63% and settled at 18,268.54 and NSE Nifty loses 35.25 points or 0.64% to 5485.80. Broader market indices also ended in negative zone, The BSE Mid-cap index lost 0.34% while Small-cap index was down by 0.46% respectively. On the BSE Sectoral front, Consumer Durables up by 0.47% was the lone gainer. On the flip side, Capital Goods down 1.08%, FMCG down 1.04%, Realty down 0.80%, Metal lower by 0.73% and Bankex down 0.65% were the major losers. The gainers on the Sensex were Hindalco up by 0.60%, TCS up by 0.59%, ONGC gained 0.38%, Wipro up 0.23% and Infosys up 0.03%. (Provisional) On the flip side, DLF down 2.15%, ITC down by 1.74%, L&T down by 1.74%, Reliance Infra down 1.67% and Tata Steel down 1.55% were the top loser on the index. (Provisional).
Meanwhile, Index of Industrial Production (IIP) in April 2011 rose by 6.3% from a year ago; on the other hand the growth was measured at mere 4.4% in comparison to 7.3% in the month of March as per the old series, while IIP in April 2010 stood at 16.7%. This time it was a new series of IIP data with an updated base of 2004-05 and with inclusion of more components, the total number of items under the series has gone up to 695 from 538 earlier. The IIP for manufacturing, mining and electricity sectors for month of April 2011 grew by 2.2%, 6.9% and 6.4%, respectively. The annual growth for these three sectors for 2010-11 were 5.2%, 8.9% 5.5% respectively. According to the old series the IIP for manufacturing, mining and electricity sectors for month of April 2011 was recorded at 2.1%, 4.4% and 6.4%, respectively.