FIRST LIGHT HEADINGS
EIH Associated Hotels reports stellar FY11 numbers Headline inflation for month of May surges to 9.06% Thermax fixes book closure for dividend and AGM Titan Industries fixes record date for bonus issue and sub-division of equity shares (24 JUNE 2011) MMTC invites bids for import of complex fertilizers NHPC incorporates new joint venture company
Market Outlook
On Tuesday 14 June 2011,Positive global setup overshadowed the sluggish May Inflation data as local bourses showcasing strong resilience snapped the worrisome day in green. Though, the worse than expected WPI numbers knocked off substantial gains from the local bourses but the strong momentum of Capital Goods, Power, Banking and Realty counters kept the spirit of the bourses up. India’s wholesale price index (WPI) rose at an annual 9.06 per cent in May as compared to 8.66 per cent for the previous month and 10.48 per cent during the corresponding month of last year, on the back of higher manufactured goods prices. Bankex and Realty counters which earlier gained weight on the back of the expectation that the RBI would take a pause after the sledgehammer 50 bps hike in May, showcased immense resilience even after the higher than expected inflation data firmed the speculation that the RBI would continue its hawkish monetary stance in its upcoming monetary policy review on June 16, 2011. However, the drag came from the Consumer Durable, Oil & Gas and Auto space. The oil & gas index dropped marginally on account of selling pressure in RIL. The stock slumped 1.40% to -913.70 – falling for the second day after the oil sector regulator rejected three new natural gas finds by the Mukesh Ambani-led company in the eastern offshore KG-D6 block as discoveries.
The BSE Sensex gained 50.58 points or 0.28% and settled at 18,316.61. The index touched a high and a low of 18,380.19 and 18,261.11 respectively. 19 stocks advanced against 11 declining ones on the index . The BSE Mid-cap index gained 0.56% while Small-cap index was up by 0.28%. On the BSE Sectoral front, Capital Goods up 1.05%, Power up 0.95%, FMCG up 0.92%, Bankex up 0.89% and Realty up 0.60% were the top gainers. On the flip side, Consumer Durables down 1.36%, Oil & Gas down 0.77% and Auto down by 0.16% were the losers.
India VIX, a gauge for market’s short term expectation of volatility lost 2.11% at 18.51 from its previous close of 18.91 on Monday. The S&P CNX Nifty gained 16.40 points or 0.30% to settle at 5,499.20. The index touched high and low of 5,520.15 and 5,484.20, respectively. 38 stocks advanced against 12 declining ones on the index. (Provisional).
Most of the Asian equity indices finished the day’s trade in the positive terrain . on Tuesday after China reported better than estimated industrial output numbers. China’s industrial production rose 13.3 percent in May, while inflation quickened in line with market forecasts. Chinese index Shanghai Composite rose over one percent however, gains remained capped after Chinese policy makers raised the reserve-requirement ratio for banks by 50 basis points.
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