FIRST LIGHT HEADINGS
Shriram Transport likely to open 40 vehicle selling points
Nucleus Software accredited with the Highest Lending Deals in 2010 by Forrester Research Persistent Systems launches processional services for Cisco Quad CARE assigns ‘CARE AA’ rating to perpetual bond issue of Tata Steel UBI likely to increase ATM outlets to 5000 L&T secures orders worth Rs 4100 crore
MARKET INSIGHT
On Wednesday 22 June 2011, It was not a different day for the Indian markets than the previous one as after a positive start the benchmark indices lost their way to snap the session on a flat not, snapping the session almost to their last close. Lack of active participation of the heavyweights and supportive cues from the domestic front led the markets lower. Earlier the start of the indices was good tracking the overnight gains in the US markets and the surge in Asian peers but the confidence of the local investors waned with the reports expecting lower than normal monsoon for the third consecutive year. Weather office last evening said that monsoon this year is expected to be just below an earlier normal forecast, and that this year’s monsoon rains would be 95 percent of the long-term average overall, down from its April forecast of 98 percent and just short of the 96-104 percent range which counts as normal monsoon. The country heavily relies on the June to September monsoon for agricultural output, even the government is having large hopes of a good monsoon which will result in better produce and help in governments’ effort to bring down the food inflation in the country, currently hovering around 9%. The other factor that weighed on the markets was the decline in the heavyweights that have participated in last session’s pullback. Reliance Industries after a day of gains returned to its declining trend, losing about a quarter percent. The telecom stocks too were pounded today and heavyweights like Bharti and Idea lost in a range of 2-4%. The broader markets were unable to get any respite from the relentless selling and suffered cut of around a percent for the day.
The BSE Sensex lost 8.72 points or 0.05% and settled at 17,551.58. The index touched a high and a low of 17,678.86 and 17,492.19 respectively. 13 stocks advanced against 17 declining ones on the index (Provisional). The BSE Mid-cap index lost 0.77% while Small-cap index shed 0.80%. On the BSE Sectoral front, Oil & Gas up 0.27%, Capital Goods up 0.25%, Bankex up 0.10%, Power up 0.10% and Auto up 0.06% were the top gainers. On the flip side, Consumer Durables down 3.67%, Realty down 2.28%, FMCG down 0.82%, Teck down 0.47% and Metal down by 0.24% were the losers..
India VIX, a gauge for market’s short term expectation of volatility los at 20.89 from its previous close of 21.31 on Tuesday. The S&P CNX Nifty gained 2.35 points or 0.04% to settle at 5,278.20. The index touched high and low of 5,310.50 and 5,262.50 respectively. 27 stocks advanced against 23 declining ones on the index. (Provisional)
Most of the Asian equity indices finished the day’s trade in the positive terrain on Wednesday after Greece’s Prime Minister George Papandreou had survived a crucial confidence vote in Parliament supported regional sentiment. Moreover Japanese Nikkei remained the biggest gainer among all the Asian peers; rose about 1.80 percent in the trade as investors are expecting a solution to Greece’s debt problem.
Read more about Indian Equity Research morning report by Mansukh
